Workshop: Month End Best Practices - Month End Best Practic · Workshop: Month End Best Practices ...…

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  • Month End Best Practices

    Time: 02:15-03:15 Date: Thursday, June 22, 2017

    Page 1 of 22

    Workshop: Month End Best Practices

    Month-end procedures include selecting a cut-off date for General Ledger, Accounts Payable and Accounts Receivable and closing the period to prevent unwanted entries. The cut-off and closing procedures are optional and are not required; however, closing periods will help keep your records accurate and tidy. The timely closing of periods is a good internal control practice.

    At the end of this course you will be able to:

    1. set the cut-off date for your financial sub-ledgers and General Ledger;

    2. determine if all relevant batches are posted before closing a period;

    3. close a period

    Month End Close Process

    1. Why set a Cut-off Date?

    When preparing for a month-end close, you may want to prevent users from affecting the period you are working with, but still be able to make entries yourself. Two separate classes of GL entries, Audit Adjustments and Pre Audit Adjustments can be dated prior to the GL Cut-off date. Audit and Pre Audit adjustments are entered exactly the same way as other journal entries, but the entry screens are accessed from separate menu selections, and they may be reported on separately. Security can be set separately for Journal Entries, Audit Adjustments and Pre Audit Adjustments, so that only certain users can make entries after the GL Cut-Off Date.

    2. Set the GL Cut-off Date

    The GL Cut-Off date is set for each company. It can be removed. While impractical to set a GL cutoff while working on the close of a period, it is recommended once your results are reported.

    To set the GL Cut-Off Date, select General Ledger /Month/year close/GL CUT OFF DATE

  • Month End Best Practices

    Time: 02:15-03:15 Date: Thursday, June 22, 2017

    Page 2 of 22

    The GL Cut-Off Date screen appears.

    Activate the Cut-off Date by entering a date and clicking .

    Field Information

    Company Display only the company code

    Current Period Display only the current open period (first period that is not closed)

    Start Date Display only the first day of the current period

    End Date Display only the last day of the current period

    GL Cut-off Date Enter cut-off date. Normal journal entries must be dated after this date

    3. View Un-Posted When a cut-off date is entered, a validation is performed to ensure that the cut-off will not prevent processing of transactions already in process. You may not cut-off a period if there are any entries in the system (including sub-ledgers) that are not posted. A message will appear if such entries exist. Click to review those entries.

    4. Accounts Payable Cut-off Similar to the General Ledger cut-off date, the Accounts Payable cut-off date prevents the entry of further Accounts Payable transactions with an accounting date on or prior to the Accounts Payable cut-off date.

  • Month End Best Practices

    Time: 02:15-03:15 Date: Thursday, June 22, 2017

    Page 3 of 22

    5. Why set an AP Cut-off Date? Often the AP sub-ledger may be ready to close before the rest of the system. By cutting off AP entry, you can prevent AP vouchers, check runs, etc. from affecting the current period, while permitting entry to continue in all other areas of the system. The AP cut-off date can be set for each company and it can be removed. To set the AP Cut-off Date, select GENERAL LEDGER /MONTH/YEAR CLOSE/AP CUT OFF DATE The functionality of the AP cut-off screens is exactly the same as the GL cut-off screens. Please refer to the section above for descriptions.

    6. Accounts Receivable Cut-off Similar to the General Ledger and Accounts Payable cut-off dates, the Accounts Receivable cut-off date prevents further Accounts Receivable entries with an accounting date on or prior to the Accounts Receivable cut-off date.

    7. Why set an AR Cut-off Date? Often the AR sub-ledger may be ready to close before the rest of the system. By cutting off AR entry, you can prevent AR vouchers, payments, etc. from affecting the current period, while permitting entry to continue in all other areas of the system. The AR Cut-off Date can be set for each company and it can be removed. To set the AR cut-off date, select General Ledger /Month/year close/AR CUT OFF DATE The functionality of the AR Cut-off screens is exactly the same as the GL Cut-off screens. Please refer to the relevant section above for descriptions.

    8. Period Close Closing a period prevents all entries to the closed period of the General Ledger with the exception of the General Ledger Adjustments. You can close periods for one or more of your companies simultaneously. Closing a period will update the Company table with the current period.

    9. Cut-off versus Close Entering a GL cut-off date can be thought of as a soft close because certain types of entries are still permitted and the cut-off date can be removed, allowing normal entry to continue. Closing a period is a hard close. Once the period is closed, it cannot be re-opened.

    10. Prior Period Adjustments To access the Prior Period Adjustments window, select General Ledger /CREATE NEW JOURNAL ENTRY. Prior period adjustments are entered exactly like journal entries, with the difference that they must have an accounting date in a closed period. Prior period adjustments display separately in trial balances and can be

    reported on separately in GL Inquiry, Viewpoint BI.

  • Month End Best Practices

    Time: 02:15-03:15 Date: Thursday, June 22, 2017

    Page 4 of 22

    11. Closing a Period To close a period, select General Ledger/Close Period In the search criteria window, enter a company, last closed (or leave both blank to select all). Click Query to display company information

    From the following screen select the company or companies for which you would like to close the period Click to update the closed period. Periods cannot be closed if there are any un-posted entries affecting them. When a period is selected for closing, a message will display indicating that there are un-posted entries that will prevent the close if this is the case.

    12. GL Close Period Screen Field Identification

  • Month End Best Practices

    Time: 02:15-03:15 Date: Thursday, June 22, 2017

    Page 5 of 22

    Field Information Company Display only the company code.

    Period Calendar Display only the period structure for the company.

    Current Period Display only the current open period (first period that is not closed).

    From-To Display only the first day of the current period to the last day of the closing period

    Closing period The period that will be closed defaults to the current period; if changed to a later period, all periods through the Closing Period will be closed.

    Close Check to have the period for this company closed.

    13. View Un-Posted

    Click to review un-posted entries that are preventing the close.

  • Month End Best Practices

    Time: 02:15-03:15 Date: Thursday, June 22, 2017

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    Field Information Module Display only - the module or sub-ledger that has un-posted

    transactions for the period

    Transaction Display only - the type of transactions

    Cutoff Date Display only the closing date the user is trying to effect

    Number of transactions Display only the number of transactions that are open (note this may not be the same as the number of batches as there can be more than one transaction in a batch)

    Click to review the un-posted transactions and post them if they are valid.

    1. When the month has been reconciled, and reviewed, post all journal entries for the month using the

    mass Journal Entry posting. Note: Alerts can be set up in order to review open entries throughout the

    month. See steps below

    14. Alert for Unposted GL, AP or AR entries Select general ledger, journal entries, journal entry inquiry

    Enter the parameters, entry status is not posted

  • Month End Best Practices

    Time: 02:15-03:15 Date: Thursday, June 22, 2017

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    When the query returns, select my reports, create a new query report

    Enter the Report Name: Unposted GL Entries Select the refresh type Select the alert type Select ok.

  • Month End Best Practices

    Time: 02:15-03:15 Date: Thursday, June 22, 2017

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    To setup alerts for open AP transactions or Open AR. Follow the same process except AP: Accounts Payable, Vouchers/Voucher Entry Batch Status is not posted AR: Accounts Receivable, Data Entry, AR Batch Entry Batch status is not posted To Mass close entries: Select general ledger, journal entries, close journal entries Query for entries not closed using the parameters from company id to accounting date range or user created. Submit. All entries will be closed

  • Month End Best Practices

    Time: 02:15-03:15 Date: Thursday, June 22, 2017

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    15. Mass post entries Select general ledger, journal entries, post journal entries

    Query for entries not closed using the parameters from company id to accounting date range or user created. Submit. All entries will be posted

  • Month End Best Practices

    Time: 02:15-03:15 Date: Thursday, June 22, 2017

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    Year End Close Process

    Yearend close processes within Multiview include the following steps: 1. Create New Fiscal and Reporting Periods 2. Close Revenues and Expenses to Equity Accounts 3. Close Fiscal Year 4. Update ViewPoint Reporting Cubes 5. Update Journal Transaction Summarization

    1. Create New Fiscal and Reporting Periods

    There are two types of periods maintained in Multiview Fiscal Year Structure and Reporting Year Structure. The two structures can be the same or different. A fiscal structure only contains period starts and ends. A reporting structure may contain weeks, months, quarters and year. The Reporting Year structure is used in ViewPoint reporting while the Fiscal Year structure is referenced for the Closing Entries Submission.

    2. Close Revenues and Expenses to Equity Accounts

    Revenue and expense accounts must be closed at the end of the fiscal year. An entry is made to an appropriate equity account (i.e. retained earnings) that reflects the sum of revenues and expenses. Generating closing entries closes out the accounts designated with an account type of revenue or expense to an equity account. All transactions that have been made during the fiscal year will effectively be reversed as of the year-end with the offset going to an equity account. The equity unit/account combination is determined by the settings on the unit table for each transaction being closed. It is a best practice to print your company trial balance for the last period of your fiscal year for a control. It is also a best practice to perform the monthly close process for the last fiscal period in the year before submitting closing entries. This will make sure that any unposted entries are included in the closing entries.

    Generate closing entries from the General Ledger Main Menu Month/Year Close Closing Entries

    Submission. Company id and fiscal year to be closed are required.

    Click OK to submit.

    You can Generate Closing Entries as often as required. For example, you may need to re-run closing entries if you made audit adjustments after closing entries were originally generated. You can generate closing entries in a closed year if needed. Closing entries are assigned a unique entry type (Closing Entries) and can therefore be segregated for inquiry and reporting. After the entries have been processed make sure the equity posting is correct and all income and expenses have been closed to zero print a company trial balance for the first period of the new fiscal year the opening balances for revenue and expenses should be zero. Trial Balance Analysis and Closing Entries The Trial Balance Analysis tool is useful for validation of closing entries.

    Prior to submitting the closing entries, run a Trial Balance Analysis for the last period of the fiscal year.

  • Month End Best Practices

    Time: 02:15-03:15 Date: Thursday, June 22, 2017

    Page 11 of 22

    Group the grid by Account Type and Account Number and Full Collapse. Use Group Summary for sub-

    totals to validate total revenues and total expenses. Leave the menu tab open.

    Submit the Closing Entries per regular processing.

    Refresh the open Trial Balance Analysis to validate the closing of revenues and expense and the entry to

    Retained Earnings. Expand the Account Type: Capital to see Retained Earnings.

    3. Close Fiscal Year

    Advancements in server disk and table space management techniques have rendered the Close Year process unnecessary from an operational point of view. Closing a year will simply update the current year on the GL Companies table. If you wish to perform the Close Year function, it is accessed via:

    General Ledger Main Menu Month/Year Close Close Year

    All periods in the fiscal year must be closed before you can close the year

    Fiscal and Reporting Period Table Maintenance

    Future periods in Multiview are open to posting if a fiscal year record exists for the time period. Each year, new fiscal year records must be generated. This generation can take place several months before the last month of the current fiscal year.

  • Month End Best Practices

    Time: 02:15-03:15 Date: Thursday, June 22, 2017

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    Reporting periods also need to be updated to be available for generating ViewPoint reports for future periods. There may be more than one reporting year structure a new yearly structure must be created for all reporting structure calendars. For example, there will be a Reporting Period structure (usually R01) to match the Fiscal Period structure (usually F01). Reporting Period structures do not have to follow Fiscal Periods. You can create a Reporting Period structure for a calendar year period even if your fiscal year is not calendar. Such reporting structures can then be used in ViewPoint to report fiscal year results on a calendar year basis.

    To update a period with a new year, select Periods from the General Ledger Table Setup menu.

    A grid listing of the available periods (both fiscal and reporting) are listed. Both types of periods are

    maintained in the same way.

    Highlight the period in the grid that you wish to update and select Add New Year. This is the easiest way

    to create another year for retail calendars where year-end dates vary.

    If you wish to make a completely new period structure, select Add New Structure.

    You will be prompted for the Fiscal Year and Year End. Type in the new year and you can use the

    calendar function to find your new fiscal year end date.

    A confirmation of the period will be displayed. Select Yes to continue if the prompt is correct.

    Otherwise, select No and begin again.

    When the new period structure is created, you have an opportunity to edit the structure. This is

    important with retail calendars such as 4-5-4, etc. Make sure to review the periods carefully.

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