Debtors Reconciliation and Review | MYOB Bookkeepers

Click on the following icons in MYOB in this order:

Choose the last date you did your bank reconciliation for the report:

Display to the screen only.

Scroll to the bottom of the report and review the figures. You need the “Out of Balance Amount” to be zero. If you have a balance here you should CONTACT UBS as a matter of importance.

If your out of balance is nil, this means that the balance appearing on your balance sheet is ‘technically’ correct. However, you still need to do the below review in addition to the above to ensure that you believe all the debtors listed will in fact be paying you.

Scroll through the report and review each client individually and ask yourself the following questions:

  * Is the debt past the due date for payment?
* Will the debt be paid?
* Has this client/customer gone into receivership/liquidation?
* Is there a dispute on the invoice?
* You though they had paid? Check for double entry of invoice.

If you believe that you should not have the invoice in the system then you should reverse it by raising a credit in the system. You may need to check with your accountant if you should code it to 6…bad debts, or if you should reverse it back against the same income account as the original invoice.

Remember, if you have debtors listed that will never be paying, you are overstating your profit figures. In addition, if you are accrual based for GST you are paying GST on invoices that will never be paid.

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