It is important that column 6 be dated the same as column 1, ie if column 1 is dated “0” to “March 31, 2005” and the type “A” then column 6 should be dated “0” to “March 31, 2005” and the type would be “X”.
The amounts shown in column 6 are not just zeros, the amounts shown in column 6 are those amounts by which the account reconciliation are out of balance to March 31, 2005. In other words, if an account has $5,000 owing as of March 31 and it is paid in April and reconciled. Then and aged report for March 31, 2005 run after the payment is reconciled would be as follows :
Column 1 – March 31, 2005 , type “A” – $5,000
Columns 2-5 would all be 0 because nothing is outstanding
Column 6 – March 31, 2005, type “X” – $5,000
This format ensures that columns 2 to 6 cross add to column 1, which is the total amount owing at the month end.
This format allows you to run an aged report any number of months later, but the open columns (2-5) will only show what is outstanding as of todays date.
Yes, I also use “X” to find accounts that are out of balance, but you have to use a date that is after your last reconcile date.
