Accounting & Bookkeeping & Small Business Forum

Guest · Posted: Mon Sep 20, 2004 9:04 am Post subject: City Cycle Reconciliations

I understand the reasoning for doing the inventory reconciliations, you are trying to find out which vehicles you should still have on the lot. But why do the Acct. Rec. and Acct. Pay. rec? I noticed that Allen did not even mention these on the tape but I went ahead and did them anyway. All the work seems to be the same work you would do for the subsidiary ledger anyway, are you not just simply redoing the ledger again?

I also noticed that in the Acct. Rec. No. column there were numbers listed. Are these the same account numbers you list in the subsidiary ledger? There were no numbers listed in the no. column for the Acct. Pay.

Guest · Posted: Wed Sep 22, 2004 7:55 am Post subject: RE: City Cycle Reconciliations

Great Question. If you want a speedier answer, you probably should call your Coach. But, let me answer your question. In working with AR and AP you have a choice of either using a reconciliation in the format shown in City Cycle, or preparing a complete Subsidiary Ledger. In this particular situation we chose a reconciliation as the customers are generally a one time entry -- they come in and out, and will likely never be heard from again. If we were to have chosen a subsidiary ledger we would be inclined (and in some cases, required) to fill in all the description fields such as address, terms, phone numbers, etc. This information, in this instance would have been overkill and not useful. So, the reconciliation is a timesaver.