Monthly & Year End Reconciliation Procedures

Detailed Agenda

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Month End Procedures

Accounts Receivable-reconcile ledger and sub-ledger

Accounts Payable-reconcile ledger and sub-ledger

Asset and Equipment-report and post depreciation

Inventory-reconcile valuation and general ledger

Reconcile bank account(s)

Quarterly Procedures

Service Billing-close out work orders

Accounts Receivable-move transactions to history

Accounts Payable-move transactions to history

Year End Procedures

Inventory Count

Summarize Jobs

Archive General Ledger transactions

Accounts Receivable

At month end, the accounts receivable ledger and sub-ledger should be balanced with

each other. Because aging is based on the invoice date in Jonas, it is critical that the

ledger and sub-ledger be in agreement with each other at the end of each period. To

check this, we first run an aged receivable report. The current value of the aged

receivables report should be in agreement with the value of the general ledger control

account.

Accounts Payable

At month end, the accounts payable ledger and sub-ledger should be balanced with

each other. As with accounts receivable, these values should be in agreement with

each other at period end. An aged payables report provides us with the value of our

sub-ledger data. This is compared to the current value of the accounts payable control

account.

Fixed Assets/Equipment Depreciation

In both Fixed Assets and Equipment Management, Jonas runs a depreciation report and

provides the opportunity to post the adjusting entry directly to the general ledger

accounts. Some smaller organizations may choose to adjust their depreciation on an

annual basis. For larger companies with significant investments in fixed assets and

equipment, these adjustments should be recorded monthly to ensure that both the

balance sheet and income statements are as accurate as possible for each reporting

period.

In General Ledger> Fixed Assets > Depreciation Schedule, a report of the current

month’s depreciation can be produced. There is an option to allow the program to post

directly to the general ledger.

Fixed Assets/Equipment Depreciation Cont’d

In Equipment Management, depreciation is reported on in Equipment Management>

Reports> Depreciation Reports. As with Assets in general ledger, there is an

opportunity to allow Jonas to post directly to the general ledger rather than

manually recording the entry.

Inventory

The general ledger value of the inventory control account should reconcile to your

inventory valuation. A useful report for determining the inventory valuation is the

Valuation List by Category report. This report provides detail, by inventory part, on the

current value of the on hand inventory. As with accounts receivable and accounts

payable, a general ledger inquiry provides the value of the inventory control account.

Inventory Cont’d

Bank Reconciliation

Reconciling your bank account(s) on a monthly basis is critical to controlling cash flow.

With the advent of electronic banking, many organizations now reconcile their bank on

a daily basis! There are several time saving features in the Bank Reconciliation

program including the opportunity to enter the statement expenses directly into the

bank reconciliation rather than doing a separate journal entry.

Service Billing-Close out Work Orders

On a quarterly basis, work orders should be moved out of the current data base by

closing out work orders. Once moved to history, the work orders can still be accessed

and reviewed but the records can no longer be changed. For this reason, we

recommend that transactions not be moved to history for at least one quarter after

their completion.

The utility to move work orders to history will automatically move billed work orders out

of the current data base. You will select how you want the program to treat open

purchase orders attached to the work orders.

Accounts Receivable-Move Transaction to History

Accounts receivable transactions should be moved to history on a schedule that is

appropriate to your volume. Smaller organizations will likely move these transactions to

history annually or even bi-annually. Larger organizations will move accounts

receivable transactions on a quarterly, or even monthly, basis. Regardless of the

schedule you implement, it is important to always have the current quarter in the

current data base. Before being moved to history, the transaction should have a zero

dollar balance, and for Canadian Users, the transaction must have been reported on a

GST/HST billing report.

Accounts Payable-Move Transactions to History

Like accounts receivable, accounts payables transactions should be moved to

history on a schedule that is appropriate to the volume of transactions in your

organization. To automatically move invoices to history, they should have an

outstanding balance of zero and the associated payment should be reconciled. For

Canadian users, the transactions should have been reported on an Input Tax Credit

report.

Inventory Count

At fiscal year-end, most organizations do a full inventory count to ensure that the value

being reported for the inventory control account is accurate. In Jonas, this process

begins by having the program take a “snap shot” of the inventory as it currently exists

in the program. Once the physical count is complete, the revised values are entered

into Jonas. Any required adjustment to the inventory control account is then entered so

that the inventory on hand value and the inventory control account are the same value.

Summarize Jobs

In Jonas, jobs can be closed, summarized, or deleted. Closing a job is simply used to

restrict postings to the project so that costs are not misdirected. When you summarize

jobs, you save all of the costs to a special job that is created to house the data. Each

summarized job will have its own unique cost item in the new summary job. Jobs that

have no costs on them, or costs in the current fiscal period, can be deleted from the

program although this is not usually recommended unless there are no costs.

Archive General Ledger Transactions

While it usually takes longer for general ledger transactions to slow down processing, it

eventually does happen. You can move several periods to history at once by using the

Transfer completed periods to history utility.