Bill Summary vs. General Ledger Distribution

During the batch billing process, a bill summary is prepared. In conjunction with the bill summary, a general ledger distribution summary is also prepared. The totals on the bill summary should always match the total on the general ledger distribution, with one exception. If the system is organized such that the revenue is booked on a cash basis, and at least one account has a negative bill, the general ledger will not match the bill summary. The following is an explanation of this situation.

For purposes of example, assume that the bill summary includes two accounts. The first account is billed a total of $100 and the second account is to receive a credit for a prior reading error in the amount of $10.

The system can be set up on either a cash or accrual basis. The following table illustrates the difference.

If the system is set up on an accrual basis, the bill summary and general ledger would appears as follows. The bill summary receivables account and revenue account all have the same balance.

If the system is set up on a cash basis, the bill summary and general ledger will not have the same balance because the system is debiting and crediting the same account. The difference between the bill summary total and the GL distribution total is always double the actual credit charge(s).