Reconciling Job Cost Sub Ledger to General Ledger

Introduction

This article will walk through reconciling your job cost sub ledger to your general ledger. The two reports you will use are the JC cost and revenue report and the GL trial balance report.

Steps to Reconcile

1. Run the JC Cost and Revenue Report: Specify your beginning and ending month parameters. Change the status parameter to A to show all jobs. Ensure that closed jobs mid-year are included in this report as they would have posted to your general ledger.
2. Adjust Report Settings: Uncheck the Show 0 Balances checkbox. If you have job cost apartments, check the Subtotal by Department checkbox to match totals between departments and their corresponding GL accounts.
3. Identify the Month of Discrepancy: Always identify which month it started to go out of balance. Start in January of the fiscal year and work forward until you find the difference.
4. Check Department Changes: If your overall totals are correct but department totals are out of balance, run the HQ audit detail report for the JCC my table to find when the department was changed.
5. Make General Journal Entries: If necessary, perform a general journal entry to move the balances to the correct accounts to achieve balance at the department level.
6. Run the GL Trial Balance Report: If overall totals do not match, run the GL trial balance report in detail mode for the same GL accounts, entering GJ in the journal parameter to identify any general ledger journal entries that may not have flowed through the job cost sub ledger.
7. Validate Batch Totals: If there are no general ledger entries, validate your batch totals in the JCD's table and compare those to the general ledger table to isolate which batch number caused the difference.

Assumptions

• You have access to the JC cost and revenue report and the GL trial balance report.
• You are familiar with the terms and processes related to job costing and general ledger accounting.