Why your Aged Creditors listing does not agree to your Creditors balance in the Trial Balance?

The balance on your Aged Creditors listing (purchases ledger) should always match the balance of your Creditors in your Trial Balance (TB) (nominal ledger) at any given date. 

The nominal ledger shows details of all your Supplier transactions while the purchase ledger holds information on an individual Suppliers. Individual Supplier transactions are make up of purchase/supplier invoices, credit notes or payments are entered directly onto their own supplier code in Creditors. These are referenced usually as follows in the nominal

PI - Purchase invoice

PC - Purchase credit note

PA - Payment on account

A difference usually occurs on the nominal side (Suppliers balance in the TB) as this is the side that allows journals. These are referenced usually as follows in the nominal

JD - Journal Debit 

JC - Journal Credit

If your balances do not agree, you should go into the Suppliers nominal code and search for JD and/or JC. These would not usually be seen here. In most software, a warning message appears if you try to post a journal directly to the Suppliers nominal account but it still allows you to post it. A journal may have been incorrectly posted to the incorrect account and this will cause a difference in the nominal ledger balance. 

If you want to know more, please contact the office as info@swiftaccounts.ie

Note

The same applies if your Aged Debtors listing does not agree to your Debtors balance in the TB