Out of balance information for Trade Creditors account and Analyse Creditors window

Out of balance information -- Trade Creditors

If you compare the balances of the trade creditors account in the Accounts List window and the Analyse Creditors window, you may find out of balance amounts. This can occur because the amounts are calculated differently:

The balance in the Accounts List window reflects all transactions that have been applied to the Trade Creditors account. That is, it's the balance of all transactions in any command centre on which the Trade Creditors account has been used.

The balance in the Analyse Creditors window is the balance due on open purchases only. That is, it's the balance of open purchases entered in the Purchases Command Centre.

Using the Creditors Reconciliation report

Use the Creditors Reconciliation Exceptions report to compare the total of all the balances from all your suppliers and the current balance of the linked trade creditors account. (You specified the account that is your linked creditors account in the Purchase Ledger Linked Accounts window.)

If the Creditors Reconciliation Exceptions report shows an out of balance amount:

Any entries to the linked trade creditors account that have been generated outside of the Purchases command centre are displayed in the report.

Any entries in which the linked trade creditors account was used as the allocation account on a purchase are displayed.

Situations that can cause a discrepancy in the balance of your Trade Creditors account

If you allocate funds to the Trade Creditors account in any transaction other than those performed correctly in the Purchases Command Centre, such as a cheque, deposit or Nominal Journal entry, the Trade Creditors account reflects the transaction, but the Analyse Creditors window doesn't, because no invoice was recorded. (Use the Creditors Reconciliation Exceptions report to find these situations.)

If you use the Trade Creditors account as the allocation account in a purchases transaction, the balance of the Trade Creditors account isn't affected because the Trade Creditors account is both debited and credited by the transaction. This leaves the account balance unchanged. However, the Analyse Creditors window displays the transaction because there's a balance due on the purchases transaction. (Use the Creditors Reconciliation Exceptions report to find these situations.)

If you've entered an incorrect opening account balance for your linked trade creditors account or you've entered incorrect historical purchases there will be a non-zero amount displayed in the Out of Balance window of the Supplier Balances window. (To understand an out of balance amount -- historical purchases)

Note: Use this information to understand Out of Balance amounts on Aged Creditors and Creditors Reconciliation reports