All 21 Aging Analysis questions
More in Aging Analysis
How is Days Sales Outstanding (DSO) calculated and what does it indicate? What is Days Payable Outstanding (DPO) and how does it relate to aging? What is the cash conversion cycle and how do AR/AP aging feed it? How is aging used to prioritize collections activity? What red flags can an aging report reveal? What is 'best possible DSO' and how does it differ from standard DSO? How does disputed AR distort aging and what should you do about it? How does aging support inventory of unapplied credits on customer accounts? How does aging drive the allowance for doubtful accounts under the aging method? What is CECL/expected credit loss and how does it change receivables provisioning?
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Accounts Payable & Receivable › Aging Analysis

How do you reconcile the aging report to the general ledger control account?

Intermediate

Answer

The total of the AR (or AP) aging/sub-ledger must equal the GL control account balance. Reconcile by comparing the two, then investigating differences from unposted transactions, direct GL journals bypassing the sub-ledger, timing, or misapplied cash. The aged sub-ledger is the detail supporting the single control-account figure.
AR sub-ledger (aging) total: 320,500
GL AR control account:        321,000
Difference 500 = a manual GL journal not in the sub-ledger -> correct.
Real-world example A $500 gap between the aging and the GL is traced to a manual journal posted directly to the control account and reversed.

Common follow-ups: What causes sub-ledger to GL differences? | Why avoid direct journals to control accounts?

Reconciliations Cash Application Aging Analysis
All 21 Aging Analysis questions