Best Practice for Month End Year End Close
Best Practice for Month End & Year End Close arbelatech. com Arbela Technologies Confidential
Introductions § Raymond Abouarab, Arbela Technologies § Senior Financial Consultant § Raymond@arbelatech. com Arbela Technologies Confidential
About Arbela § § § § Founded in 2002 by ERP & Supply Chain Veterans. Leading Microsoft Gold Certified Partner Since 2004. Headquartered in California with Offices in Georgia, United Kingdom, & Denmark. Specialize in Large, Complex, Multi-company Implementations (Multi-currency, Multi-site, Multi-language, & Shared Services). Extensive Industry Knowledge in Retail, Distribution, & Manufacturing. Offer Full Dynamics AX & CRM Implementations, Upgrades, Audits & Development. Security, Compliance, & Auditing Solution for Dynamics AX 2009 & 2012. Centralized Master Data Capability & Consolidation Solution for Dynamics AX 2009 & 2012. arbelatech. com Arbela Technologies Confidential Enterprise Resource Planning Analytics E-Business Supply Chain Management Customer Relationship Management
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Closing Books Agenda Month End Close Year End Close § General Ledger – module access restriction and § If you complete all Month End correctly, closing § § § reconciliation reports Accounts Receivable – Detail due day list report, Currency revaluation (optional) and A/R aging reports Accounts Payable – GRNI report, vendor detail due day list report, Currency Revaluation, and A/P Aging Report Bank reconciliation Fixed Assets Inventory Management – Inventory Value Report Sales tax arbelatech. com the year is an easy process. Verify the closing options in Parameters Create a new fiscal year Print Financial Statements (MR/Atlas) General Ledger – Opening Transactions Back up your legal entity’s data Note: the closing sheet is optional , and we know of nobody that’s actually using it Arbela Technologies Confidential
Month End Close – Check List Module Access restriction in General Ledger Accounts Receivable module Accounts Payable module Cash Bank Management – Bank Reconciliation Fixed Assets Inventory Management Sales Tax Print TB and Financial reports Note: Month End is prerequisite for consolidation esp. the F/X adjustments for A/P and A/R § § § § arbelatech. com Arbela Technologies Confidential
Month End Close – General Ledger § Module Access restriction in General Ledger § General Ledger > Setup > Ledger, on the menu tab, click on the “Ledger Calendar” § Restrict users other than the Month End user group from posting transactions in the period § Post all open journals arbelatech. com Arbela Technologies Confidential
Month End Close – General Ledger § Post all open journals § Run reconciliation reports – General Ledger to all modules § General Ledger Reports Reconciliation arbelatech. com Arbela Technologies Confidential
Month End Close – Accounts Receivable § Run the Detailed due day List report § Accounts Receivables Reports Status Detailed due day list § The report will display all open customer invoices, Free text invoices, Credit Notes, Unsettled payments … arbelatech. com Arbela Technologies Confidential
Month End Close – Accounts Receivable § Foreign Currency Revaluation § Accounts Receivable Periodic Foreign Currency Revaluation § Update the exchange rate value in GL prior of processing the revaluation § Run Simulation prior of running the Foreign Currency Revaluation § Note: this is only applicable if the legal entity operates with multiple currencies arbelatech. com Arbela Technologies Confidential
Month End Close – Accounts Receivable § Print the AR Aging Report and reconcile the total to your A/R trade Account in your Trial Balance § Accounts receivable Report Status Customer Aging § In case of discrepancies, run the Reconciliation report in GL for your customers and check “differences only” § General Ledger Reports Reconciliation Customer arbelatech. com Arbela Technologies Confidential
Month End Close – Accounts Payable § AP Accrued purchases (GRNI report) § Procurement and sourcing Report Status Accrued Purchases. § The accrued purchases report would be the one that would reconcile with your accrual account from the inventory posting profiles arbelatech. com Arbela Technologies Confidential
Month End Close – Accounts Payable § Vendor Detail Due Day List report § Accounts Payable Report Status Vendor Detail Due Day List § Run the Due date report to view all the open vendor invoices and the unsettled amounts. § Note: this report is only available for legal entities in the US and CA , to obtain this report for other legal entities add the country code in the AOT for the report to become available. arbelatech. com Arbela Technologies Confidential
Month End Close – Accounts Payable § Foreign Currency Revaluation § Accounts Payable Periodic Foreign Currency Revaluation § Update the exchange rate value in GL prior of processing the revaluation § Run Simulation prior of running the Foreign Currency Revaluation § Note: this is only applicable if the legal entity operates with multiple currencies arbelatech. com Arbela Technologies Confidential
Month End Close – Accounts Payable § Print AP Aging Report and reconcile the total to your A/P trade Account in your Trial Balance § Accounts Payable Reports Status Vendor Aging § In case of discrepancies, run the Reconciliation report in GL for your vendors and check “differences only” § General Ledger Reports Reconciliation Vendor arbelatech. com Arbela Technologies Confidential
Month End Close – Cash Bank Management § Run standard bank reconciliation § Or run the advance bank reconciliation by importing bank statements. § White paper on advance bank reconciliation is available on partner/customer source § http: //www. microsoft. com/enus/download/details. aspx? id=39090 § Note: This is not a month end requirement, we just need to reconcile the totals to your GL - You most likely won’t have your bank statement arbelatech. com Arbela Technologies Confidential
Month End Close – Fixed Assets § Record depreciation (depreciation § § proposal), acquisition, disposals of fixed assets. Run the Fixed Assets transactions report Fixed Assets Reports Transactions Fixed Asset Transactions Run the fixed asset balances report Fixed Assets Reports Periodic Fixed Asset Balances arbelatech. com Arbela Technologies Confidential
Month End Close – Inventory Management § Run the Inventory Value Reports to reconcile all your WIP, COGS, Deferred COGS, and Inventory § Inventory management Reports Status Inventory Value § Note: the reports require setup in the inventory value reports in setup § Inventory management Setup Inventory value reports arbelatech. com Arbela Technologies Confidential
Sample Report – Reconciliation by item group arbelatech. com Arbela Technologies Confidential
Month end close – Run inventory close § Inventory close is a very important part of the month end close even with standard cost § Inventory management Periodic closing and adjustment , click on close procedure drop down arrow and select “close” arbelatech. com Arbela Technologies Confidential
Month End Close – Sales Tax § Run the sales tax payment / posting § General Ledger Periodic Sales tax payments § NOTE: if you do check the “update Box”, the sales tax payment will be posted for this period. § If you do not chose update but chose to accumulate sales tax – you have to post the payment manually to sales tax authorities. arbelatech. com Arbela Technologies Confidential
Print TB and other financial reports § Print Trial Balance detailed or summary reports. § General Ledger Reports transactions Groupings Detailed trial balance or Summary trial balance § Use your Financial report writer to print you financial statement (Management reporter or Atlas) arbelatech. com Arbela Technologies Confidential
Year End Close – General Ledger Parameters § Best practice is to have the “delete close-of-year transaction during transfer” and “Voucher number must be filled in” checked § The “create closing transactions during transfer” and “set fiscal year status to close” not checked arbelatech. com Arbela Technologies Confidential
Year End Close - Create a new Fiscal year § Create a new fiscal year to post the opening transactions and prepare for the new year § General Ledger Setup Fiscal Calendar arbelatech. com Arbela Technologies Confidential
Year End Close – Opening Transactions § This process will move balance sheet ending balance to opening balance for next fiscal year and reset profit and loss accounts to zero, posting result to retained earnings. § General Ledger Periodic Fiscal year close Opening Transactions arbelatech. com Arbela Technologies Confidential
Questions? Raymond Abouarab, Arbela Technologies Senior Financial Consultant Raymond@arbelatech. com Arbela Technologies Confidential
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