Who owns the process of liability account reconciliation, the GL team or the AP team?

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The liability account reconciliation is handled outside of AP, usually by the general ledger accounting team.

One of our experts, with mid-size company experience, says AP did not do journal entries: “We could create them but not enter them—and all the reconciliations (with the exception of an AP suspension account that we tried not to use) were done by accounting because reconciliation often required journal entries to correct issues.”

Here’s the process from one of our large company experts: On a monthly basis, they (G/L) compare the liability account to an open invoice report from the AP system.  To eliminate erroneous reconciliation items, these reports must contain the same time frame.  There are many reasons for reconciling items.  The following are given to AP to research and correct:

- Manual journal entries not entered into the AP system
- Deleted invoices
- Deleted credit memos
- Date ranges: post date vs. invoice date
- Voids and re-issues done incorrectly (usually a discount issue)

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