Many MYOB users find that the total amount due from their customers ( debtors) sometimes does not match with the amount shown in the debtors account in the chart of accounts. This is what your accountant would call as imbalanced debtors and they would spend considerable time balancing that. It is imperative that it balances when the annual set of accounts are prepared.
How do I know if my debtors are balanced
The simplest way is to run the Receivables Reconciliation Report. Look at the sample report below. The imbalance is generally shown at the bottom.
What are the possible reasons
There are several reasons but the most common are:
- No opening balances entered when starting to use MYOB file
- Making direct entries usually General Journal entries into the Debtors accounts
- Applying payments to sales before the date of the sale( looks strange but very common)
- Using Receive Money to record customer payments rather than Receive Payments
What do I do?
The best thing to do at this stage is to run the Receivables Reconciliation Report and see if it is imbalanced. We will be running a series of blogs over the next two months and will reveal all that you can do to set it right and prevent that from happening in the future.