End of Month Processes

The following article can be used as a checklist to work through end of month processing.

End of Month Processes

Sales Order Processing

•       Fulfill all orders that have been shipped.

•       Bill all orders that have been shipped.  Hide unfulfilled orders.

•       This ensures the income and COGS are in the same period.

Purchase Order Processing

•       Post Vendor Bill Variances

Is your Accrued Purchases / Inventory Received Not Billed account balance building up?

When there is a difference between the item receipt value and the Purchase Order bill value a Vendor Bill Variance journal is required to clear the Accrued Purchases and move the difference into the COGS.

There are 3 variance types:
 
1.Price Variance
2.Exchange Rate Variance
3.Quantity Variance
 
A variance occurs when there are differences between the item receipt and the PO Bill.
If you want the item to use the actual cost, you would need to go back and edit the item receipt or the purchase order.
 
Note: Purchase Order History Report shows the difference between the receipt and the bill.
 
For example I buy 1 unit for $10 but the bill is for $12.
–Purchase Order is for $10
–Item Receipt for $10
Dr   Stock  $10 Cr  Inventory Received not Billed  $10
–Bill Purchase Order for $12
Dr  Inventory Received not Billed  $12 Cr  Accounts Payable  $12
 
A balance of $2 remains in the Inventory Received Not Billed a/c
 
Post Vendor Bill Variances
 
Each month you will need to Post the Vendor Bill Variances:
 
Navigate to: Transactions > Payables > Post Vendor Bill Variances
 
Tip: Use three separate variance accounts to identify where the variances are coming from
 
Setup > Accounting > Accounting Preferences > Items Tab > Default GL Variance Accounts
 
Tip: Purchase Order History Report provides a break down of the balance in the Inventory Received not Billed Account
 
For further details please see Suite Answer article: 11157

Payroll

•       Make sure all Pay Runs are paid (ie. the PayRun Stage = “Payrun Paid” or “Emailed Payslips”).

 Bank Reconciliation

•       Reconcile bank account/s.

Invoicing from Timesheets and Expenses

•       Approve all timesheets / expenses / bills and create invoices.

Closing Periods

•       End of Month Checklist:

–      Use the Checklist icon to open the check list

–      Each Task needs to be reviewed and confirmed complete, even if there are no occurrences for that period.

•     To prevent Date / Period Mismatches:

–      Go to Setup > Accounting > Accounting Preferences > General Tab.  Set Allow Transaction Date Outside of Posting Period = Disallow.

•    To Unlock a Period:

–      Open the Checklist.

–      Click the Arrow next to Close.

–      Enter a reason in the Justification field then click the “Re-open Period” button.

–      Click the arrow next to the task to open AR / AP or all.

–      All periods after the unlocked period will need to be manually locked again.

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