Munshi AR-AP: receivables and payables that tie to the GL
Every customer and vendor balance, aged and tied to the general ledger. Munshi AR-AP reads the open items from your ERP, applies each receipt and payment to the invoice it settles, ages what is left, and puts the sub-ledger beside the GL so the difference is either nil or named.
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Munshi AR-AP by FINAHQ. Receivables and payables, reconciled to the GL. Every month, by hand, in Excel: Export the customer ledger and the trial balance. Match receipts to invoices, one customer at a time. Age every open item into its bucket. Work out why the ledger doesn't agree to the GL. Find the customers in credit and the provisions in the control account. Rebuild the Schedule III ageing note. Then the auditor asks: show me how it ties. Here is the same month-end, with Munshi. Munshi reads the books itself. Today: export the ledger and the TB to Excel. With Munshi: open items from SAP, or Tally bill-wise, and FINAHQ's trial balance, read directly. Each month, one click: Refresh from FINAHQ. Receipts applied to invoices. Every item aged. Today: matched by hand, customer by customer. With Munshi: by reference, then amount, then combination, then oldest first. 1,641 applications, each one listed. The sub-ledger, tied to the GL and the trial balance. Today: a reconciliation nobody can re-perform. With Munshi: L4, less adjustments, is Base. Base equals the sub-ledger. The one difference is named. Every posting of the year, traced. Today: sampled, if at all. With Munshi: all 6,279 postings traced through the sub-ledger. Exceptions: none. The document mix and the narrations, for every code. Today: found at the audit. With Munshi: a code with no invoice on it is flagged. It is not a customer. A person tags the code once, by company. Today: explained again every quarter. With Munshi: unbilled, disputed, advances, MSME, related party… tagged once, carried every month, checked against the sub-ledger. Not a plug. Not aged. Named, by tag. Today: a balancing figure. With Munshi: journal 5.57 Cr against 6.29 Cr of tagged items. 71.4 lakh named, waiting for the accountant. What to post, proposed. You approve it. Today: worked out by hand at quarter-end. With Munshi: the recon by L4, the advances journal and the reclass each tag needs. Proposed, never posted by Munshi. The working paper proves itself before it prints. Today: a workbook rebuilt every quarter. With Munshi: fifteen sheets, every figure a formula. Eight checks. All pass, fit to print. A review, not a rebuild. Every month: Refresh from FINAHQ, get the data, print the paper. Every difference named, by document, in seconds. An ageing note that is proven, not asserted. One workbook for the auditor. Bring last quarter's ageing. We'll rerun it with you, on your own ledgers.
Sounds familiar?
The receivables and payables problems Munshi AR-AP was built to end.
- The customer ledger doesn’t agree to the GL
- An ageing that doesn’t tie to the balance sheet
- Receipts on account that never get applied
- One payment covering five invoices
- Customers in credit and vendors in debit, netted into the balance
- GR/IR and clearing accounts mixed into the ageing
- Provisions posted to the control account
- Schedule III buckets rebuilt in Excel every quarter
- “Show me the party-wise roll-forward” from the auditor
- A different answer every time someone reruns the workbook
The sub-ledger and the GL, side by side
Most ageing reports start from the customer and vendor ledgers and stop there. Munshi AR-AP starts from the same open items, then proves them against the books:
- The items. Every open invoice, credit note and payment, net of what has been applied to it.
- The GLs that hold them. Each receivable or payable GL, with its balance beside the items it carries, and the gap.
- The GLs with no party items. Provisions, GR/IR and clearing accounts, named on their own line instead of hiding in the difference.
- The trial balance and the statements. Through FINAHQ, the GLs roll up to the trial balance line and the financial statement line, with the adjustments and reclassifications made there.
At every level the difference is either nil or named.
How it works
- Read the open items. Customer and vendor open items from SAP, or Tally’s bill-wise details, over the same read-only connections FINAHQ uses. Every GL line is read too, for the roll-forward and the tie.
- Apply before ageing. Each receipt and payment is applied to the invoice it settles, party by party: by reference, then the same amount, then a combination that adds up, then the oldest first. Every application is listed with the rule that made it.
- Age what is left. By due date or document date: under six months, six months to a year, one to two years, two to three, over three. Anything still unapplied is shown as its own line, not spread across the buckets.
- Regroup the advances. A customer in credit or a vendor in debit is shown apart as an advance, with the reclassification proposed. Nothing is posted from here.
- Tie to the GL. The items against the GLs that carry them, the GLs with no party items listed, and the whole up to the trial balance and the statements.
- Download the working paper. One Excel file with the ageing, every party, the applications and the tie, for the file and the auditor.
Every party, every document
Open any customer or vendor and see each document: its type, its due date, its bucket, what was applied to it and what settled it. The roll-forward shows the year for every party, from the opening balance through invoices and receipts to the close. The top parties older than a year are listed first, because they are the ones the audit committee asks about.
Run it every month
Munshi applies, ages and ties every open item to the GL in one run, from the ledgers as they stand. So the ageing is no longer a quarter-end project. Run it at every close, and the receivables and payables notes are ready when the statements are.
Munshi prepares. You review and sign.
Munshi AR-AP makes no accounting judgments. The application rules, the buckets and the accounts left out are your team’s, set once, dated and logged. Every figure opens to the documents behind it, and nothing is posted without a person’s approval.
Munshi AR-AP is one of the custom agents Munshi runs on FINAHQ, beside Munshi ICE for intercompany.
Questions
Commonly asked
How do we reconcile the receivables sub-ledger to the general ledger?
Munshi AR-AP totals the open items of every customer, net of what has been applied, and compares them with the balances of the GLs that carry those items. GLs with no party items behind them, such as provisions, GR/IR and clearing accounts, are listed on their own line, so the gap is either nil or explained.
How are receipts and payments applied before the ageing?
Party by party, in a fixed order: the invoice the payment quotes, then the invoice for the same amount, then a combination of invoices that adds up to it, then the oldest first. Every application is listed on the party, so you can see which payment settled which invoice and by which rule. You can also turn it off and age every item on its own date.
Does the ageing agree to the balance sheet?
Yes. The buckets plus what is still unapplied add up to the open items, the open items tie to the GL, and through FINAHQ the GL ties to the trial balance line and the financial statement line, including the adjustments and reclassifications made there.
What happens to customers in credit and vendors in debit?
They are shown apart, as advances, and the reclassification is proposed for your team to approve. Munshi AR-AP never posts it.
Which ERPs does it read?
SAP open items, through the same customer, vendor and GL line-item views your team already uses, and Tally bill-wise details. Where an ERP keeps no open items, it works from the GL lines alone, oldest first.
Can we change the buckets or leave an account out?
Yes. Age by due date or document date, choose the buckets, and name the GLs that must not age, such as a GR/IR or clearing account. The configuration is set by a person, dated and logged, and the figures are computed again when it is saved.
FINAHQ, Munshi and FINK are all offered by Ananta Technology Services LLP.