Dynamics GP Tip of the Month: Reconcile to GL routine to reconcile payables management to the general ledger

Reconciling Payables Management to the General Ledger (GL) in Microsoft Dynamics GP is a critical part of maintaining accurate financial records, but it can often feel daunting. Fortunately, Dynamics GP offers a built-in Reconcile to GL routine designed to simplify this process by identifying discrepancies between sub-ledger transactions and the general ledger. In this tip of the month article, we’ll share practical tips and highlight key steps to help you use this tool more effectively, so you can ensure your payables balances tie out cleanly and confidently at period end.

The Reconcile to GL feature in Dynamics GP helps you generate a spreadsheet that lists transactions from both Payables Management and the General Ledger. This report highlights which transactions match and which don’t, giving you clear visibility into discrepancies. While the tool itself doesn’t automatically fix any issues it finds, it provides a solid starting point for investigating and resolving those differences. Keep in mind that only posted transactions residing in either the Open or History tables will appear in this reconciliation report.

1. Open the Reconcile to GL Window

2. Enter or select the reconciliation number.
3. Enter the date for this reconciliation. It will default with the current date.
4. Enter the date range for the transactions to include in this reconciliation. The payables management transactions with a transaction date that is included in the date range will be included in this reconcile.
5. Select Payables Management as the Module.
6. Select a file location for the Excel spreadsheet that will be created.

The default file name is created for the Excel spreadsheet by using the module abbreviation, reconciliation number, and date. You can change this name, but we recommend that you use a consistent naming convention and folder for all reconcile to General Ledger spreadsheets.

• Enter the accounts to use to match Payables Management transactions to General Ledger distributions. This would most often be the Accounts Payable or Discount Available accounts. The accounts that were on the previous reconciliation for Payables Management are displayed, if this is not the first reconciliation for this module.

The following happens during the matching process:

• Transactions from Payables Management are matched with General Ledger distributions using the transaction source code, voucher number, posting date, and transaction amount.
• Transactions are potentially matched if some, but not all, of the information matches. For example, if the source code and date for the transaction matches the code and date in General Ledger, but the transaction amounts don’t match, the transactions are considered potentially matched and will appear in that section of the spreadsheet.
• If the transaction exists in Payables Management but not in General Ledger or vice versa, the transaction is unmatched and will appear in the Unmatched section of the spreadsheet.
• The subledger and General Ledger balances are calculated and displayed in the window.
• The Excel spreadsheet is created and saved in the output file location that you specified in step 6. After the processing is complete, the spreadsheet will open.

By taking the time to understand and properly use the Reconcile to GL routine in Dynamics GP, you can save hours of manual reconciliation work and reduce the risk of reporting errors. Regular reconciliation not only streamlines month-end close but also strengthens your overall financial controls.

For more tips to optimize your Dynamics GP processes be sure to return here next month for our next tip article. Looking to maximize Dynamic GP’s capabilities? Contact our team today to speak to a Great Plains expert for support, guidance, or training.