Sage 200 Evolution – The Recon Process

This blog article will cover the various recon processes within Sage 200 Evolution and how important it is to carry out recons in your database. When you hear the word ‘recon’ within an accounting environment the first though that comes to mind is a Bank Reconciliation. This is the process of ensuring that transactions that appear on your bank statement have been processed in your database and bank related transactions processed in your database appear on the bank statement. This recon exercise should be carried out regularly to ensure that the bank statement information and database bank transactions are in balance and any unreconciled transactions are accounted for.

There are however many other recon processes that can be carried out within a Sage 200 Evolution database. These processes also need to be undertaken at regular intervals to ensure that you can identify any differences or discrepancies that may arise.

 A very useful application to assist in the reconciliation process is the Sage 200 Evolution Diagnostic Tool. This application can be installed from the Sage 200 Evolution install and after an easy configuration allows you to specify a module to reconcile. An analysis of transactions processed is done and differences based on various scenarios are identified. A video presentation on the Diagnostic Tool can be viewed on our Sage 200 Evolution YouTube channel (Click here).

One of the most widely used recon processes is the reconciling of a customer/supplier age analysis to the customer/supplier control account. This process is a check that all transactions processed to individual customer/supplier accounts have been posted to the customer/supplier control accounts in the general ledger. There may be instances whereby the customer/supplier age analysis balances are different from the balances in the customer/supplier control accounts. The procedure would then be to identify the transaction/s that are leading to the difference in values. We have a range of articles on our knowledge base which can assist you in troubleshooting and identifying these differences (Click here).

The sales of goods and services are vital to an organization. Sales reports are reconciled to sales accounts in the General Ledger to ensure that the sales values are reported correctly.

 The reconciling of inventory valuation to the inventory control account is another process which is widely carried out. Inventory is such a vital aspect of a business, so it is important that inventory control measures are implemented. You need to ensure that you are aware of the value of your inventory holding at any given time. Therefore a reconciliation between your inventory valuation and inventory control account needs to regularly be done.  

Another area where reconciling is important is with situations of Work in Progress (WIP). Organisations that manufacture goods or engage in repair/maintenance activities (Job Costing) often have WIP scenarios whereby a manufacture process or maintenance project can last over various time periods. These activities are classified as WIP. It is important that WIP activities are closely monitored and reconciled to the WIP control account at regular intervals.    

Reconciling of transactions within Sage 200 Evolution covers many modules from General Ledger, Accounts Receivable, Accounts Payable, Inventory, Bill of Materials, Job Costing etc.

Companies have different reconciliation methods based on their specific financial requirements. In many instances individuals within the organisation rely on reconciliation processes to assist them within their areas of work such as sales, inventory control, manufacturing, financial controls etc.

When it comes to the recon process the following fundamentals are important:

  • Undertake reconciling at regular intervals.
  • Identify any differences or discrepancies.
  • Make use of the support options available to assist with the recon process (Sage 200 Evolution Diagnostic Tool, Sage 200 Evolution Knowledgebase)  

In concluding it is left to say that the recon process is important within a financial system and covers many areas which allows for a clear picture to be obtained of the business as a whole.

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Anonymous
  • Good Day Shephi

     Based on the scenario you describe there is currently a difference between your supplier age analysis and the supplier control account in the general ledger. I would therefore suggest the following process:

     1) The supplier account is displaying the correct balance after the payment was processed.

    2) Determine which GL accounts were updated on the supplier payment.

    3) Process a general ledger journal batch to reverse the payment value from the GL accounts determined in Point 2.

    4) Process a new GL journal for the payment value to the supplier control account and the other GL account based on the supplier payment transaction type.

    5) This process will result in the transaction now displaying in the GL which corresponds to the supplier subsidiary ledger.

     

    Thank you.

  • Hello...A payment to a supplier was posted using a transaction code not linked to accounts payables control account. This resulted in the payment only appearing in the purchases ledger and not in the control account. The payment was made from the supplier batch module. How do I correct this transaction