Month-End Processing

Document path Reference Contents > Ledgers Manager > Month-End Processing

Month-end procedures can be run individually for each ledger. Or, if appropriate, you can select a number of ledgers to close in sequence.

You select from the check boxes the ledger or ledgers you wish to close down, and Process month-end. You can only process month-end if you have passed the month-end date in the calendar. It is not a reversible process.

Ledgers that are unavailable for month-end are grayed. Each ledger transaction archive is to a separate named archive file in the Archive directory in tab-delimited file format that can be opened by a spreadsheet.

Note NOTE: Month-end processing is not permitted if there is no follow-on period in the Ledger period calendar. It is also not permitted if the Ledgers are Unlocked by entering the Non-balancing Transactions window.

The A/R and A/P ledger processes carry out the following tasks:

1. All transactions that are cleared prior to the data retention period for each account are archived to the file listed and deleted. A balancing value is left at the first transaction of the account if there is a balance carried forward from the archived records.
2.The ledger current period number is incremented.

Before a G/L month-end is processed the system checks that the G/L balances. Any imbalance will be reported and the month-end process will be abandoned. For month-end processing to take place the G/L trading accounts must correspond to the G/L asset accounts total for the current accounting period.

The G/L process carries out the following tasks:

1. All G/L accounts that are assigned to the Income statement (P and L statement) are balanced off with a balancing transaction reflecting the position at the end of the current period (ignoring transactions for later periods). The total of all balancing transactions is added to the "Retained Profit and Loss control account". All such accounts have their current period turnover reset to reflect the new current position.
2. All G/L accounts that are assigned to the Balance sheet are checked for their correct balances and corrected if not accurate.
3. All transactions (that are cleared, in the case of Bank accounts) prior to the data retention period for each account are archived to the file listed and deleted. A balancing value is left at the first transaction of the account.
4. All accounts have their balances or turnover figures for the period and period-to-date updated to reflect the move to a new period.
5. All accounts have their balances or turnover figures for the period recorded in the budget history record for the account (if there is no budget for the account/period, a record will be created).
6. The General Ledger current period number is incremented.

Tip TIP: Rules to follow before processing month end:
1. Confirm all depreciation is charged from the Asset Register with the Post all depreciation for this period button function within the Asset register maintenance window. Alternatively, this can be done automatically at G/L Month-End.
2. Satisfy yourself that all processing for the period is complete.
2. Ensure the Period calendar is up-to-date.
2. It is recommended that all G/L account budgets are covered for the forthcoming period.

It is recommended that you choose the Reset General Ledger balances first option that carries out a check that the balances and turnovers held on the accounts correspond exactly to the underlying transactions in the accounts. This process is the same as the Re-set General Ledger Balances function in the Data File Integrity Maintenance window.

If you are processing a General Ledger Month-end, you may choose the option of posting all asset depreciation prior to processing the month-end. Any assets whose depreciation has already been posted manually will be ignored. A ledger balance check is made both before and after posting depreciation. Only if the check succeeds on both occasions does the system proceed with the G/L month-end.

Field

Description

Accounts Receivable

Select for Accounts Receivable period-end processing.

- Post Un-posted Agent Commissions From Commission Log

This option will cause the system, after doing the A/R month-end, to post any un-posted commissions earned by agents where those agents have valid cost posting and accrual G/L accounts.

Note NOTE: All ledger transactions that result will be posted into the A/R period you are closing. If you want them to be recorded in the new A/R period, you must not check this option but post the commissions manually after month-end in the Sales Commissions Review window.

- Distribute Commission Pools to Members

This option will cause the system, after doing the A/R month-end, to distribute any un-distributed commissions earned by pool agents to the pool's membership.

Note NOTE: All ledger transactions that result will be posted into the A/R period you are closing. If you want them to be recorded in the new A/R period, you must not check this option but post the commissions manually after month-end in the Sales Commissions Review window.

- Post Commission Agent Supplier Invoices

This option will cause the system, after doing the A/R month-end, to invoice suppliers any un-invoiced commissions earned by agents where those agents have valid supplier codes and accrual G/L accounts.

Note NOTE: All ledger transactions that result will be posted into the A/R period you are closing. If you want them to be recorded in the new A/R period, you must not check this option but post the commissions manually after month-end in the Sales Commissions Review window.

Accounts Payable

Select for Accounts Payable period-end processing.

General Ledger

Select for General Ledger period-end processing. This selection is only available when both AR and AP ledgers have been or are being processed for the indicated period.

- Reset General Ledger balances first (takes longer but is much safer)

This option will cause the system to first reset the G/L. This ensures that the the balances are correct before and that the accounts truly balance.

- Post depreciation for Asset Register assets

This option will automatically post all asset register depreciations prior to running month-end.

- Balance-off Trading Accounts into Profit/Loss

This option is only available when the Manager Control option to manually balance off trading accounts has been set. It is used to control the balancing off process.

Button

Action

Process

Click to process the selected month-ends.

The window has two tab panes.

Cleared Transactions Archive

Other Activities and Controls

Cleared Transactions Archive

Shows archive policy set in Ledger Manager Control Settings.

Field

Description

A/R Archive file

The transaction archive file path.

A/P Archive file

The transaction archive file path.

G/L Archive file

The transaction archive file path.

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Other Activities and Controls

Options to roll-over period values and controls of processing termination.

Field

Description

Roll-over Customer Period Turnovers

Check this option to roll-over the customer period turnover values from 2 to 3, 1 to 2 and clear period 1.

Roll-over Supplier Period Turnovers

Check this option to roll-over the supplier period turnover values from 2 to 3, 1 to 2 and clear period 1.

Roll-over Parts Period Usage

Check this option to roll-over the parts period usage values from 2 to 3, 1 to 2 and clear period 1.

End with Message

Processing will end with a message only.

End with Program Restart (more safe)

Processing will end with a program restart so that user login is required (safer).

End with Program Exit (for backup)

Processing will end with a program exit so that the data file is released for automatic backup.

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Compiled in Program Version 3.10. Help data last modified 26 MAY 2004 11:14. Class wAcMonthend last modified 21 MAY 2008 13:31:31.

Document path Reference Contents > Ledgers Manager > Month-End Processing