Deltek Insight 2012: Ready, Set, Close! Tips and Tricks for a Streamlined and Successful Month End Close

Ready, Set, Close!

Stacey McCarver, DeltekGC- 471

2 © 2012 Deltek, Inc. All Rights Reserved

This Session will give you an overview of the monthly and annual closing processes. We will review the reconciliations that you should complete and what to do if something does not reconcile. We will provide a recommended closing checklist to help you stay on track, to ensure a successful close on time, every time!

Abstract


When is the best time to begin your month end processing?

Plan the monthly accounting activities Use a monthly planner

Accounting routines should be the same every month

Accounting period (Month or Four-week period)

After all transactions have been recorded and posted

Each company should develop a set of closing procedures

© 2012 Deltek, Inc. All Rights Reserved4

Month End Close Check List


1. Post adjusting journal entries

2. Post all journals

3. Allocate service centers

4. Prepare billings

5. Reconcile – AP, Leave, Accrued Salaries and ZZZZ

6. Calculate indirect rates

7. Compute costs and revenue

8. Review financial statements

9. Print final billing worksheets, Unbilled A/R Analysis

10. Print final job status reports

11. Make additional adjusting journal entries

12. Print financial statements

13. Print Impromptu reports

14. Back up data files

15. Close the accounting period

Month End Processing Steps

Step 1: Post Adjusting Journal Entries

Make any and all necessary adjusting journal entries Review and update standard journal entries

Avoid journal entry adjustments to certain accounts Some accounts, under normal circumstances, should never be

adjusted by a journal entry Labor accounts Accounts Payable Accrued Salaried Billed and Revenue

These journal entries can cause a variance between the GL and subsidiary ledgers



Utilize Recurring Journal Entries

Saves time and potential entry errors

Depreciation, Outsourced PR entries

Posted through the same process as regular journal entries

Step 1: Post Adjusting Journal Entries

Step 2: Post All Journals

Post all journals Use Test feature in the Print G/L*Close Accounting Period application

to see which journals are unposted Items identified with “*” can remain unposted



Cut-off current period processing

Turn off “Current Period Processing” in the General Ledger Control File

Ensures no new entries are added while you process the month

Leave AR, CT, and GL open

Once the current period is closed, the modules turned off are automatically turned back on



Run the GL Reconciliation Report

Diagnostic tool identifies the major out-of-balance situations

Trial Balance G/L Summary to G/L

Detail G/L Summary to Labor

Summary G/L Summary to G/L

Detail and Labor Summary



Run the GL Reconciliation Report Trial Balance Option

Calculates the net balance of all of the accounts in the G/L Master File for the selected period(s)



Run the GL Reconciliation Report G/L Summary to G/L Detail to Labor Summary Option

Compares the G/L Summary balance for each account to the G/L Detail File or the Labor Summary File


04/18/2023 © 2012 Deltek, Inc. All Rights Reserved14

Step 3: Allocate Service Centers

Never prompted that there are “unallocated service centers” Extremely important to allocate

Can affect revenue, billings, and indirect rates

Service Center processing steps1. Print the Service Center Cost report 2. Process Service Center Fringe Burden3. Enter the usage on the Enter/Edit Service Center Usage screen 4. Calculate service center allocations5. Print the Service Center Usage Report 6. Print the Service Center Journal and Post


Step 4: Prepare Billings

Must be performed here if Revenue = Billings Otherwise, can be performed throughout the month-end process Contract and Generic Billings

Billing processing steps1. Compute contract Billings2. Print and review Billing Worksheets3. Make necessary adjustments in Billing Edit File4. Select5. Print Bills6. Print Billing Journal and Post


Step 5: Reconciling – Accounts Payable

Reconcile Open Accounts Payable to the General Ledger

Consider the top three causes of an out-of-balance situation The Cash Disbursements Journal or the Voucher Distribution Journal

has not been posted to the G/L A journal entry or journal posting from a module other than Accounts

Payable has been made to the A/P account The date on one or more checks is in a different accounting period

than the accounting period indicated when entering check information


Step 5: Reconciling – Accrued Leave

Reconcile the Accrued Leave Report to the General Ledger

Consider top three factors that are crucial to the reconciliation Accrued Leave report timing

Utilize the report printed after the Payroll is posted for the last timesheets of the accounting period AND before any other Payroll Journals are posted

Increasing the leave liability to reflect pay raises Print the Accrued Leave Report before entering pay raises Reprint the Accrued Leave Report after entering pay raises Take the difference between the two reports' total balances to calculate the

journal entry amount


Step 5: Reconciling – Accrued Leave (cont’d)

Auto-Adjusted Timesheets Leave taken is booked against the leave accrual account at a different

hourly rate than the annual hourly rate at which it was accrued A journal entry is required to adjust leave accrual and expense

accounts with a journal To identify the journal entry amount, review the charges to accrued

leave each pay period


Step 5: Reconciling – Accrued Salaries

Reconcile the Accrued Salaries account Always carries the value of the timesheets posted until payroll is

posted Problems occur when the labor cost amount from timesheets differs

from gross pay in payroll

Payroll Variance Is part of the Payroll Journal Keeps the Accrued Salaries account clean Easily identifies the employees with cases of labor cost and gross pay

differing


Step 5: Reconciling – Accrued Salaries

Common causes of a payroll variance Manually changing gross pay on the Edit Payroll screen Changing a salaried employee's pay rate after entering the timesheet

AND before creating the payroll Not auto-adjusting a salaried employee’s timesheet Issuing a paycheck without a timesheet

Excess Life Add amounts for life insurance premiums in excess of $50,000 per

year to employees' gross pay at least once per year Always cause a payroll variance

Amounts do not appear on timesheets A journal entry is required to move these amounts from the accrued

salary account or payroll variance account and to the insurance clearing account


Step 5: Reconciling the ZZZZ-000-00 Account

GCS Premier provided suspense account Utilized each time a posting is attempted against a missing account Eliminates an out-of-balance posting

Keeps your ledger in balance Simplifies recovery from a missing account situation

Important to review and analyze monthly Print the G/L Detail Report

Issues are corrected via journal entries



Step 6: Calculate Indirect Rates

Processing steps vary based on pool structure Co-Wide rates Divisional rates Inter-divisional allocations Inter-pool allocations

Must be completed before revenue - if posting revenue at actuals or posting variances


Step 7: Compute Costs and Revenue

Compute, compute, compute!

Review Contract Revenue Summary Reports

Use JSRs for individual contract troubleshooting


Step 8: Tie-in Contract Reports to Financial Statements

Tie Gross Profit on the Income Statement to Contract Fee on the Revenue Summary

Tie each Pool amount on the SIE to each pool amount on the Income Statement

Tie Income Statement Revenue to the Contract Revenue Summary

Tie Over/Under Applied (Cost Variance) on the Income Statement to the Contract Cost Summary

Only necessary if posting revenue with variances


Step 8: Tie-in Contract Reports to Financial Statements

Tie Direct Labor from the Income Statement to Direct Labor on the Contract Cost Summary Direct Labor Base on the SIE

Tie Direct Cost amounts on the Income Statement to the Contract Cost Summary

Tie Total Costs less G&A on the Income Statement to Total G&A Base on the SIE

Subcontractor/Material Handling Pools considerations


Step 9: Unbilled Analysis

Suffix 12 in the GL

Utilize the Billing Worksheet Excellent tool to identify and analyze unbilled

Provides billed information on a line-item basis

Unbilled Report is also available Provides unbilled information pertaining to both the General Ledger

and Billing modules More useful for reconciling than for analysis


Step 10: Print Final JSRs

Expedite the process, utilizing Pre-Set Report Parameters

Report Groups

Batch Manager

Process Manager

Web Reports


Step 11: Make Additional Adjusting Journal Entries

Additional entries should not affect revenue, billing, or indirect rates

Additional entries that may be needed Federal Corporate Income Tax State Corporate Income Tax



Balance Sheet

Income Statement

F/S Code Summary

Indirect Expense Report

Direct Expense Report

Trend Reports

Automated/paperless options Batch Manager Process Manager Output Manager Web Reports and Processes Send

Step 12: Print Financial Statements

Final Steps

Step 13: Print Impromptu reports

Step 14: Back up – Make an “end of month” backup

Step 15: Close the period – Print the final General Ledger and

Close


Step 14: Back up Data Files

Backup Data into new Folder Create new Audit Folder (September 2012) Ensure all users are exited from GCS Premier Copy contents of Current Data Folder into New Folder (September 2012)

Edit DTShared.ini for GCS to access Audit Data Increase Count= line by one Add new line: Name2=September 2012 Add new line: Path=\\GCS_Server\GCS\Data\September_2012


Step 15: Close Accounting Period

Current balances in the General Ledger are combined with the previous YTD balances

Reversing journal entries are set up for posting in the new accounting period

Any "next" accounting period data that has already been posted becomes the "current" accounting period data

Setup Accounting period file is updated with new current accounting period


Annual Closing Processes

Annual Closing Processes

Fiscal Year Close

Standard Month End Close Process

Timing of Audit Directory

Calendar Year Close Close the Accounts Payable Year Close the Payroll Year

After ALL checks dated for current year have been posted Before processing checks for the new year

Pre-recorded webinars with Step by Step instructions are available on the Deltek Customer Care Connect - Year End Info Center

https://deltek.custhelp.com




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Deltek Insight 2012: Ready, Set, Close! Tips and Tricks for a Streamlined and Successful Month End Close