When posting journals there may be times when it would be helpful to see what affect the journal would have on balances prior to posting the entries.
In this post we’ll walk through how this can be achieved by using the “Reconciliation Account” feature on the GL account page.
Configure the GL Codes
The first thing you need to do is select the option “Reconciliation Account” on the GL code. You can do this by browsing to the “Chart of Accounts” and selecting a GL code and switching the option “Reconciliation Account” on.
In this example I’m switching the option on for 40500 Prepaid Rent and 30100 Rent Expense.
Create the Journal
Now I create a journal which is going to hit these two GL codes however before I jump in and click “Post” I want a sneak peak at what the balances would be if I were to post the journal.
Run the Test Report
In order to see what the balance of the GL codes would be I need to run the “Test Report” using the following selections:
Then, along with any posting errors, there’s an extra section showing the “Balance after Posting” for each GL code as per below:
In the scenario above this feature could have been especially useful, as I may have wanted the balance in my Pre Paid Rent account to be £0.00 after I’d posted this journal. If this was the case, I can now simply close the Test Report, change the amounts to £510.00 and then post. This would have then prevented an extra journal entry or a potential reversal entry.
This is a handy feature that is going to be espeically useful when posting accrual entries or correcting entries at a reporting period end. This is when accountants maybe checking balances and finalising accounts.
Thanks for reading!