---
title: "AP aging and payroll liabilities review"
sidebarTitle: "AP and payroll"
description: "Reviewing the AP aging against prior period, payroll and 401(k) liability reconciliations, and the bonus accrual."
icon: "money-check-dollar"
---

> **For AI agents:** the complete documentation index is at [llms.txt](/llms.txt). Append `.md` to any page URL for its markdown version.

<Info>
  **Source:** `Rackson_RRS_RCY_Review_Process.docx` sections 23 and 24.
</Info>

## Accounts payable aging

Review the AP aging against the prior period. **Confirm that most variances are explained by normal timing** — a bill posted in the following period rather than the current one.

<Note>
  **Illustrative example.** A small aging difference of roughly **$25–$26** was traced to a bill that posted in the next period — a **normal and expected pattern**, not an error.
</Note>

<Warning>
  **Certain vendors are subject to ongoing payment negotiations** that the client (**Caleb**) monitors closely. Be aware of which vendors fall into this category so their aging isn't mistaken for a processing error on PBI's side.
</Warning>

<Warning>
  **At year end**, aging items that were left as timing throughout the year should be **revisited to confirm they actually cleared as expected** rather than continuing to roll forward indefinitely.
</Warning>

### Step-by-step checklist

<Steps>
  <Step title="Pull the current AP aging and compare to prior period">
  </Step>
  <Step title="For each new or growing aged item">
    Check whether it is explained by a bill posting in the following period.
  </Step>
  <Step title="Cross-reference the negotiation list">
    Check aged vendors against the list of vendors known to be in active payment negotiations (Caleb) **before treating aging as an error.**
  </Step>
  <Step title="At year-end, revisit all timing items">
    Confirm they cleared.
  </Step>
</Steps>

<Note>
  On the close checklist, the **AP Processing Cutoff** is a **WD3** task. AP closes for payment processing on **Thursday of close week** — once that happens the check date should not move.
</Note>

## Payroll-related liabilities

Payroll liability and 401(k) reconciliations follow **PBI's standard approach used across other clients**: tie the funding and liability accounts, and investigate any outstanding items such as **uncashed AP or payroll checks**.

<Note>
  Aged payroll checks are common and are generally left to the client's own process (Mike) to resolve up to a point, rather than PBI writing them off unilaterally.
</Note>

## Bonus accrual

The client (**Mike**) sends the bonus schedule each period, which includes the previous period's detail with the current period highlighted.

### How it's booked

PBI records the adjustment through a **standing/recurring journal entry**:

<Steps>
  <Step title="Duplicate the previous period's entry">
    In Intacct, go into the prior month's bonus entry and duplicate it.
  </Step>
  <Step title="Update to the current period's approved figures">
    Update the memo lines to match the new period's descriptions from the client's file — **the memo/description column in the client file maps directly to what goes in the JE memo.**
  </Step>
  <Step title="Cross-reference line by line">
    Check the client's schedule against the existing entry's line items to **confirm nothing is missing.**
  </Step>
  <Step title="Confirm personnel changes are reflected">
    Before finalizing.
  </Step>
</Steps>

<Note>
  **Illustrative example (RCY/Dave's).** There were only two adjustments for one period, one of which related to an **executive's departure and a related pro-rated bonus true-up** of roughly $175 per the schedule. Confirm any personnel changes like this are reflected in the entry before finalizing.
</Note>

<Warning>
  **On RRS, bonus adjustments have not been made since Period 2** this year. The cadence has become **more sporadic** than the prior practice of adjusting monthly for both concepts. This is flagged as an **open item to follow up directly with Mike** — see [Open items](/internal/customers/rackson/open-items).
</Warning>

### Step-by-step checklist

<Steps>
  <Step title="Tie payroll liability and 401(k) accounts">
    To the funding detail; research any uncashed AP or payroll checks.
  </Step>
  <Step title="Pull the client's current bonus schedule">
    Duplicate the prior period's recurring journal entry as the starting point.
  </Step>
  <Step title="Update the entry's line items">
    To match the client's schedule, cross-referencing each line.
  </Step>
  <Step title="Confirm personnel changes">
    Departures and new hires, before finalizing the entry.
  </Step>
  <Step title="For RRS, confirm whether Mike has provided an updated schedule">
    Since Period 2. **If not, note it as outstanding rather than assuming no adjustment is needed.**
  </Step>
</Steps>

<Note>
  Fuller mechanics of the bonus entry — the file structure, the G&A-versus-store-level question, and the cadence transition — are on [Labor reclass and bonus](/internal/customers/rackson/review-process/labor-reclass-and-bonus). On the close checklist, **Bonus Accrual** is a **WD7** task.
</Note>

## Related

- [RRS AP and credit cards workpapers](/internal/customers/rackson/workpapers/rrs-ap-and-credit-cards) — the 20000 AP aging preparer steps
- [RRS payroll and accruals workpapers](/internal/customers/rackson/workpapers/rrs-payroll-and-accruals) — the 21000/22100/21600 and 21800 preparer steps
- [Labor reclass and bonus review](/internal/customers/rackson/review-process/labor-reclass-and-bonus)
- [Weekly ACH bank file upload](/internal/customers/rackson/processes/weekly-ach-upload) — how approved AP reaches the bank