Module 7 · Advanced · 9 min read

Customer, supplier and stock checks

You will be able to: Age customer and supplier balances as of month end; Explain why Aging and Party Balance Summary can differ; Check goods received not invoiced and a stock count against the books.

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After cash, check the other big balances. The test is always the same: a detailed list must add up to a control account in the Trial Balance. If it does not, find out why before you close.

Receivables and payables

The Aging report splits unpaid invoices by how many days they are past their due date. Set Side to Receivables or Payables, set As on to the last day of the month and choose a Bucket size of 7, 15, 30 or 60 days. Invoices dated after As on are left out and receipts dated after it do not count, so you see the books as they stood at month end. The due date is the invoice date plus the days of its payment term.

The Aging report for customers showing each customer across the not due, 1 to 30, 31 to 60, 61 to 90 and over 90 day buckets with a total.

Reports, Aging: compare the total with the Receivables account.

Reports, Aging: compare the total with the Receivables account.
Which bucket?As on 31 October. Invoice A, AED 5,000, is dated 1 September with 30-day terms, so it fell due on 1 October and is 30 days past due: it sits in 0-30. Invoice B, AED 8,000, is dated 10 August with 30-day terms, so it fell due on 9 September and is 52 days past due: it sits in 31-60. The party shows 13,000 in Total.

Aging does not list invoices. For the invoices behind a figure, use Outstanding - Customer (bill-wise) or Outstanding - Supplier (bill-wise). Party Balance Summary lists every customer or supplier with a balance, with credit limit, last invoice and last payment.

Watch outAging counts only invoices. Opening balances and manual journals to the receivable or payable account are missing from Aging but included in Party Balance Summary. Money received on account and advances are not netted in either report. A gap between the two is therefore often explained, not an error. Compare the Party Balance Summary total with the Trade Receivables line in the Trial Balance.
  • In Reports, Financial statements (the tree view), Trade Receivables shows 'show parties': click it to list each customer with a balance. They normally add up to the account line.
  • Data health has a check called Party sub-ledger against the control account, which finds entries on Trade Receivables or Trade Payables that carry no party.

Goods received, not yet invoiced

When you submit a goods receipt, the goods go into stock and the same value is owed on the Goods Received Not Invoiced account (2150) until the supplier's invoice arrives. The Goods Received Not Invoiced report lists each receipt line not fully invoiced, with its age. Its Pending Value total should equal the balance of account 2150 in the Trial Balance with no filter. Chase the invoices, then enter them with Create Against: GRN on the Purchase Invoice.

The Goods Received Not Invoiced report listing receipts without a supplier bill and the pending value.

Goods received but not yet billed should match account 2150.

Goods received but not yet billed should match account 2150.

Stock

  • Stock Balance & Valuation gives quantity, moving-average cost and value for each item and warehouse as of now. Settings, Costing can set FIFO or LIFO for an item, so value can differ from quantity times average cost. For a past date use Stock Balance - Period Movement.
  • Data health has a check comparing the stock ledger value with the Inventory account. It needs permission to see cost.
  • Day End and Stock Status flag negative stock, where more was issued than received. Fix the cause, usually a missing purchase, before you read profit.
The Stock Balance and Valuation report with its value total to compare with the Inventory account.

The stock value total should equal the Inventory account.

The stock value total should equal the Inventory account.

A physical count is posted from Inventory, Stock Reconciliations: press + New Count, type what you counted for each item and press Post Differences. Zeyto posts the differences as a stock adjustment (ADJ-) and shows a net value. For example, an item with 100 units in the books and 96 counted, costing AED 25 each, is a shortage of 4 units, worth AED 100, which reduces stock and profit.

Try it in the demo

  1. Open the Aging report from the Reports search. Set As on to the last day of last month and press Run with Side on Receivables.
  2. Open Party Balance Summary with Side on AR and compare its total with the Aging total. Why might they differ?
  3. Open Goods Received Not Invoiced and note the Pending Value total.
  4. Open Stock Balance & Valuation and read the Value tile. Do not post a stock count in the shared demo.
Open the live demo

Public demo company, sign in as admin / demoAdmin123. Data refreshes nightly.

Key takeaways
  • Every detailed list should add up to a control account in the Trial Balance.
  • Aging counts invoices only; Party Balance Summary also includes opening balances and journals.
  • The Goods Received Not Invoiced report total should equal account 2150.
  • A stock count posts differences as an adjustment; shortages reduce stock and profit.

Check yourself

3 questions on this lesson. Not timed, not the exam, and you can try again. Score 60% or more, and read the lesson, to complete it.

1. Which Zeyto account holds the value of goods received but not yet invoiced?

2. As on 31 October, a 4,000 invoice dated 5 September with 30-day terms is in which Aging bucket (30-day buckets)?

3. Which statements explain why Party Balance Summary can show a higher total than Aging?

Select all that apply.

Previous: Cash, bank and petty cash checksNext: Accruals, prepayments and payroll

Practice questions for this module · Printable study sheet