Reconciling Company Payables in QuickBooks

Reconciling Company Payable accounts is a key step to ensuring the accuracy of your accounting records. Reconciling confirms that your customer has been invoiced for the gross amount that was invoiced by the carrier, and that any retained commission has been recorded correctly.

Company Payables should be reconciled in QuickBooks^® each time you pay your Company Payable statement.

Reconciling is typically performed by the agency Bookkeeper, or other person responsible for processing company payable statements.

To view your open Company Payables

1. In QuickBooks, click Lists > Chart of Accounts from the main QuickBooks menu bar.

2. Select the payables account.

   In QuickBooks Desktop - Double-click on the account name.

   In QuickBooks Online - Click View Register.

   The account register opens.

3. QuickBooks Desktop Only: Select Cleared status from the Sort by drop-down list in the lower left of the register window.

   Items that have been reconciled are checked. Unchecked items are your open company payables. This should match your Unpaid Company Payables Report in HawkSoft.

4. Close the account register to return to the Chart of Accounts dialog.

To Reconcile your Company Payables in QuickBooks Desktop

1. In QuickBooks, click Lists > Chart of Accounts from the main QuickBooks menu bar.

2. Right-click on the Payables account you are reconciling, and then select Reconcile.

   The Begin Reconciliation dialog box opens.

3. Enter your statement date, or the date of the company payable check in the Statement Date field.

4. Confirm the beginning balance is 0 (zero).

5. Enter 0 (zero) in the Ending Balance field.

6. Click Continue.

   The Reconcile window opens.

   The column on the left, labeled Charges and Cash Advances, typically lists the General Journal Entry for the invoice.

   The column on the right, labeled Payments and Credits, lists the check created to pay the invoice to the carrier.

   When a carrier issues a credit to the agency on their statement, the check appears on the left side and the General Journal entry appears on the right.

   QuickBooks default display does not include the Memo line of the General Journal Entry. To display the memo, click Columns to Display on the right side of the dialog. Select Memo in the Checks & Payments column, and then click OK. The first time you view the General Journal Entry, this field should be displayed to allow you to distinguish between items you have invoiced and items you have paid.

7. Verify that the General Journal Entries on the left match the Check Items on the right.
   • Place a check mark next to each item as you verify.
   • Verify the date, memo field information, and amount invoiced versus paid.
8. Once you have verified all items for the check that you are reconciling, the difference should be zero.
9. Click Reconcile Now.

10. Select to Display, Print, or Close the reconcile report.

To Reconcile your Company Payables in QuickBooks Online

1. In QuickBooks, click Transactions > Reconcile from the menu on the left-side.

2. In the Account drop-down, select the payables account to be reconciled.

3. In the Statement Date field, enter the company payables statement date or the date of the company payable check.

4. Confirm the beginning balance is 0 (zero).

5. Enter 0 (zero) in the Ending Balance field.

6. Click Start Reconciling.

   The Reconcile window open.

   Debits and credits representing invoices, credit memos, and payments to the agency bill carrier are listed.

7. Click the radio button next to both the payment to the carrier

8. Click the radio button next to the matching invoice or credit memo.

9. Once you have verified all items for the check that you are reconciling, the difference should be zero.

10. Click Finish Now.

 

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