Aged Payable Report does not agree with Balance Sheet Report
MartaP
Member Posts: 14
Help! Aged Payable Report does not agree with Balance Sheet Report
It seems that this is another issue after the upgrade of Wave.
Suddenly Aged Payable Report does not agree with Balance Sheet Report. I am not able to finalise the year and do the audit of my accounts!
I've been using Wave for 10 years. Those 2 reports were always reconciled. Now I do not know which numbers are correct, and why my Balance Sheet report does not show the same as Aged Payable Report. I thought at first that it was due to the new way of revaluation of the balances in foreign currencies the Wave does (that cannot be traced by the way in Wave), This is a big problem. The previous years reports (that used to reconciled before the upgrade) now do not reconcile either! Help!
Comments
I have an idea. The Aged Payable in the new Wave does not show any overpayments/prepayments (matched later with future invoices) on the Suppliers Accounts as it was shown in the old Wave Aged Payable. While the Blance Sheet report takes those overpayments/prepayments to Accounts Payables and hence the difference between the reports. Please fix it! Maybe there is something else that distorts the report. Really, this is a serious bug in your system. I cannot reconcile my closing balances!
Hey @MartaP , thanks for your message here. It's true that reporting in the new Wave software is different from how it used to be. One of the key differences is that now, reports pull data from all transactions, rather than only verified ones, so that's one key difference that might be affecting your views here.
The Balance Sheet & the Aged Payables report do not necessarily need to match, though. The Balance sheet represents the accounting equation (Assets = Liabilities + Equity) for a single date. Aged Payables represents any unpaid or overdue bills for the past 30, 60, and 90 days. Since these reports are pulling different data (A/P, for example, is only pulling data from bills specifically), they will not necessarily offer the same insights or match. So as long as these are showing the related data sets in the reports, they should be operating as normal!
Thank you for your reply. Unfortunately, I must say it again. After the upgrade, Wave does not give proper reports. They are misleading and incomplete. As an accountant, I want to see the reports that tie up and can be reconciled to each other easily. The new way the reports are designed, the accountants cannot do the reconciliation of their accounts. It takes a lot of time to figure out where the data come from and why there are differences on the reports. I am wondering whether there is any accountant on your team verifying the changes to Wave...
@CallieP I also have the same issue and I think I know what it is. It appears to be caused by some rounding issue causing strange postings in payables.
I have found the following, let's assume there is no sales tax for simplicity. Let's also just take a 1 item bill as an example.
I purchase 15 of an item and the total is 102.95 for all the items. This makes the unit price of each 6.86333 recurring. Entering just 6.86 as a unit price will give 102.90. So I opt for 6.863 and all good it takes the line total to 102.95.
I save the bill and it then posts the following:
DR wherever allocated 102.94
CR Accounts Payable 102.94
However, when I go to pay the bill it correctly recognises 102.95 is due and payment is recorded.
Now the following post is made:
DR Accounts payable 102.95
CR selected bank account 102.95
The result is a residual 0.01 left in the Accounts Payable general ledger account, but 0 on the AP ledger. Similarly, if run before paying gl would show 102.94, but the AP report 102.95.
From what I can tell the posting for the bill is using the following formula
ROUNDDOWN([unit price] * [quantity], 2)
But the total for the bill calculation that is utilised in payments, etc. is as follows:
ROUND([unit price] * [quantity], 2)
Hope that helps you find the issue and correct it as it is really pesky having all these residual amounts sitting in the AP account.
Hi @Jayke , thanks for your message! Thanks also for taking the time to flesh out what's happening in this situation here. As a workaround, I would recommend creating an adjustment entry to offset the rounding errors, as rounding errors do occur and making adjustments is sometimes just a part of accounting for that. Thanks again !