Troubleshooting Accounts Receivable Imbalance between LEAP and QuickBooks Online

28/06/2024
Knowledge

How To

Accounts Receivables represents the balance owing to the firm by its clients. Only once an invoice is finalized with the status ‘Final/Printed’ in LEAP does the amount invoiced increase the Accounts Receivables.

How to Compare the LEAP and QuickBooks Online AR Balance

As the Accounts Receivable is displayed on the Balance Sheet and relates to General Accounting, the LEAP Accounts Receivable Report balance should tie back to the General Ledger balance of the LEAP AR in QuickBooks Online (QBO). If these two balances do not tie back, the below steps should be taken to troubleshoot the imbalance.

In LEAP, run the Accounts Receivables Report by clicking the LEAP Menu > Reports > General Account > Accounts Receivable Report.

Make sure to note down the selected At Date.
Make sure that for the Invoices field, only Printed Sent (Final) is selected.
For the Reporting Group field, Select All.
For the Include Inactive Staff field, select Yes as inactive staff who have left might still have outstanding billed fees.
For the Staff Responsible, Staff Acting, Introducing Lawyer and Staff Assisting Fields, make sure Select All is selected.
For the Billing Category field, Select All .
Leave the Display and Group By fields as None.
Leave the Expand field as No.
Click VIEW when ready.
The Account Receivables total will appear at the bottom of the report, within the Total column.

In QuickBooks Online, run the Balance Sheet report by clicking the Reports tab > Balance Sheet.

Make sure that the Balance Sheet Report end date matches the “At Date” of the LEAP Accounts Receivables Report.
Click Run Report.
On the Balance Sheet Report in QuickBooks Online, look for the “LEAP Receivables” (or its equivalent) and note the total.

You can then compare the total balance found on the LEAP “Account Receivables report” and the QuickBooks Balance Sheet’s total “LEAP Receivables GL balance”. If these two numbers do not match, then there is an AR imbalance between LEAP and QBO.

Reasons for an AR Imbalance Between LEAP and QuickBooks Online

There are journals waiting to sync in LEAP within the General Ledger Link module.
There are duplicate Journals in QuickBooks Online (QBO).
Manual journal entries have been made against LEAP GL Accounts in QBO.
LEAP Journals that had synced to QBO, were manually edited or deleted in QBO.

Troubleshooting the Four Possible Reasons for an AR Mismatch

1. Journals are sitting in LEAP, that have not been imported to QuickBooks Online (QBO)

In LEAP, navigate to the General Ledger (LEAP Menu > Accounting > General Ledger Link). From this module, verify that all journals have been pushed across to QBO successfully and that there aren’t any journals pending import with an ‘Error’ or ‘Not Exported’ status.

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Please see this article for instructions on how to export journals from LEAP to QBO.

2. Determine if there are duplicate journals in QBO

From the QBO’s Chart of Accounts find the LEAP Receivables General Ledger and export the Account history as an Excel spreadsheet. Then from the ‘Ref No’ column on the Excel Sheet, search for duplicates (conditional formatting for highlighting duplicate values is an Excel tool that can be used for this).
If duplicates are found, delete the duplicate journals from QBO.

3. Determine if manual entries have been created against LEAP GL Accounts.

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Note: No entries should be entered manually into QBO against LEAP GL Accounts.

Only journals created in LEAP and synced over should populate the LEAP GL Accounts in QBO.

Within the LEAP Debtors Account History excel spreadsheet, use a filter to search through the Memo/Description column for those journals that do not have the word LEAP in them, as these will most likely have been entered manually into QBO.
If manual entries are found, then these need to be investigated with the firm’s bookkeeper and recategorized in QBO to a secondary Accounts Receivable adjustment GL account or as required.

4. Determine if any LEAP journals were manually edited or deleted in QBO

Run the Audit Log in QBO for all time, up to present. Then export the Audit Log to Excel.
In Excel, filter through the “Event” column for any journals with the word “Edited” or “Deleted” that also have a LEAP journal number (i.e. LJ000150).
If you find Edited and/or Deleted LEAP journals in QBO, please discuss the reason for these with your bookkeeper.

Other Troubleshooting Steps to Find the AR Variance between LEAP and QBO

If you followed the instructions laid out in this article and were not able to find the cause of the AR discrepancy between LEAP and QBO, please do the following before reaching out to your Client Success Manager:

Find the date when the AR discrepancy first occurred between LEAP and QBO. To do so, run the LEAP Accounts Receivables Report and then the QBO Balance Sheet for various month end dates to compare AR totals and establish if these balances did ever indeed tie back.
It is also helpful to establish if the variance has over the months been increasing or decreasing to pinpoint what transactions are causing this variance.

Last Modified Date

28/06/2024 2:54 am

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Troubleshooting Accounts Receivable Imbalance between LEAP and QuickBooks Online

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Troubleshooting-Accounts-Receivable-Imbalance-between-LEAP-and-QuickBooks-Online-CA

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