A brief summary of examples of activities that happen in Accounting to prepare for month-end as well as year-end.
Your Accounting processes culminate in the Fiscal Year-End. If you have let any of your monthly reconciliation processes fall behind you will need to catch up before the last day of the current fiscal year. You can apply the following suggestions to a month-end process to ease the workload as you approach year-end:
- Payroll and Tax Remittance processes should be up to date;
- Verify your AP (check your statements against your DealerVu record);
- Verify your AR (ensure credits are applied to the applicable invoices) and consider old debts. Follow collection processes and work with your management team to decide if you will close customer invoices and charge on the account;
- Identify all of your sub-ledger reports and reconcile your related GLs whenever possible;
- Balancing of your GLs to sub-ledgers (including Inventory, Unit Inventory Transactions, AR, AP, Banks, Customer Deposits...);
- Verify your clearing accounts;
- Ensure there are no unposted transactions in Banking transactions, AR, AP, Journal Entries, and, if applicable, Daily Book;
- Review all invoices marked with a hold.
As a normal course of business, you will be checking that no one has posted actions in closed periods - there is a permission setting to prevent posting in closed periods ("Create Transactions Prior to Closing Date"), you will need to remove that permission from most employees.
Once you have completed your month/year end you will then set/open-closed periods. Go to System Settings>Accounting>Miscellaneous Settings> Last Period Closed Date. Here you will set the date according to your period end date.
If an employee tries to post a document for a previous Closing Date, a pop window will open to warn the user. If the user does not have permission, they will not be allowed to post the transaction.
If a person has posted or altered an item in a prior fiscal year (for which you have posted all adjustments), the Trial Balance report will show that unposted transaction as OOB - you can begin tracing the action by looking at the accounts listed in the Proposed Adjustments.
We recommend refreshing your training database each time you have verified your accounts and set your period to closed. If action has been taken to modify a closed period, you can research in training to find the variation.
Note that you should have everything up to date before Fiscal Year End: keep in mind that many transactions (especially where they impact inventory) can not be backdated.