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Reconcile Account Balances - new feature in v4.5a

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  • Reconcile Account Balances - new feature in v4.5a

    One of the more powerful features being added in the new 4.5a upgrade for Liberty 4 Consignment is the Reconcile Account Balances routine. This feature adds to Liberty a way to handle old balances. Old balances picked up by this Reconcile Account Balances can be treated in one of two ways: they can be converted to a non-payable balance usable only for store credit; they can be deducted from accounts, effectively forfeiting the remaining old balances.

    Important - We recommend that the method in which old balances are handled is consistent with consignor agreements and with legal standards in your area.

    The Reconcile Accounts feature is launched from the Inventory Module. It can be found under the Activities > Accounting menus, as "Reconcile Accounts". Reconcile Accounts may not be launched while a Check Run is in progress.

    The "Prepare" screen for Reconcile Balances allows for filtering by Account Number, by Filter Code, and by Items Sold Through.

    The Items Sold Through date is effectively a cut-off date for considering which transactions are considered "old" by the Reconcile Balances routine. All open transactions occurring on or before the specified date will be considered, along with open account deductions occurring after the specified date. Deductions occurring after the Items Sold Through date are factored in, as it is assumed that they were deducted from the balance that existed on the account at the time that they were applied to the account. This behavior ensures that store credit use, group deductions, and manual deductions are properly handled. The only deductions that are not considered by this routine are deductions occurring after the Items Sold Through date that are associated with specific items (such as Per Item Deductions, Web Listing Fees, Sale Deductions, and Final Value Fees) - as these sorts of transactions deal specifically with inventory, it is assumed that they should remain open transactions.

    The Reconcile Balances routine will completely ignore accounts where the open, old balance is negative. It will also ignore all "Return Sale" transactions, in order to not cause issues in cases where an item was sold before the specified Items Sold Through date but was refunded afterwards.

    Once appropriate filtering options have been set, click Prepare to begin the process.

    Much like the Account Payments routine, a prompt will indicate how many accounts will be impacted, and for how much. Once OK is clicked, a summary of the accounts and amounts is displayed:

    The summary view lists all accounts that will be impacted. It includes a breakdown of the types of transactions that comprise the balance, as well as the balance itself. The list can be printed (or previewed in a separate window) by clicking the Print button. The Back button will allow for the Reconcile Balances feature to be re-started with different filtering.

    By default, the Process button will close out the old balances and will create a non-payable forwarded balance using the current day's date. In order to prevent the balances from forwarding (to forfeit the old balances), click the checkbox for "Do not create a balance forward transaction".

    Once the Reconcile Accounts routine has been processed, transactions are applied to each account to adjust the balance, and Reconciliation Payouts are created to close the old transactions.

    In the above screen capture, the transaction highlighted in green is the balance that was deducted from the account. The transaction in blue is the non-payable transaction that added money back in to the account. The payout #'s in yellow indicate that these were all transactions closed out by the process.

    Important - The results of fully processed Reconcile Account Balance routine cannot be automatically reversed for all impacted accounts. It is certainly possible to take steps to undo the action one account at a time.
    Russell Levy
    Product Manager
    (800) 785.4800