Open topic with navigation

Period end routines

As you move through the financial year, you must close and open your accounting periods.

Closing accounting periods is done in Accounting System Manager, however there are various tasks to perform in each module before closing each period in Accounting System Manager.

You can adapt the following to make a period end check list for your own business requirements, adding your own items if required, but you must perform the preparatory tasks in each module before closing a period for that module.

Note: Only run period end routines when no one else is logged on to the system.

• Enter all transactions for the current period to be closed.
• Set up any template journals required for period end processing.
• Enter any periodic journals (for example, prepaymentsThe process of deferring expenditure and income to the accounting period in which it is incurred. This usually involves setting up an asset on the Balance Sheet for bills paid in advance, and then releasing that asset by instalments to the accounting periods in which the service is actually provided., accrualsThe process of matching expenditure or income to the accounting period in which it was incurred rather than paid; for instance, a rent cheque or utility charges.).
• Perform preparatory tasks in Sales Ledger

  • Check to see whether you have transactions waiting to be posted by running Report Pending Transactions in the Sales Ledger.
  • Run the Update Pending Transactions routine on the Sales Ledger.
  • Allocate as much cash as possible on all open item accounts.
  • Run the Finance Charges routine to calculate interest on overdue accounts, if appropriate.
  • Print Statements to show individual transaction details of paid and allocated items during the month.
  • Print detailed VAT Transactions and VAT Return reports, if required.
  • Print all reports you require, including the Transaction Listing report, the Aged Debtors report and the Vatable Transactions report, and retain these for reconciliation and auditing purposes.

  The Transaction Listing report is a straightforward list of transactions for the month's trading.

  The Aged Debtors report helps to identify outstanding debt. It determines all outstanding balances on each customer account and the age of each debt relative to the ageing periods you specified during the ledger setup process.

  The Vatable Transactions report lists all customer tax (VAT) entries in a given period. Use this report as part of your reconciliation procedure to analyse sales tax (VAT) amounts. You need to specify the tax periods the report is to cover by entering the start and end VAT months in the Analysis Period box.

  • Print a List of Accounts report and the Trading Report to decide which accounts are to be deleted if any.

  The List of Accounts is a straightforward list of your customer accounts.

  The Trading Report illustrates the trading activity of your customers. It summarises for each customer the turnover figure for the current and previous year, and also details the turnover figures for the current and last six months. The values in the report are exclusive of VAT and displayed in your base currency. If you are working with foreign currency customers then the ledger converts the values to your base currency using the rates specified in your exchange rate table.

  • Take a backup of your Sales Ledger data files.
• Perform preparatory tasks in Purchase Ledger

  • Check to see whether you have transactions waiting to be posted by running Report Pending Transactions in the Purchase Ledger.
  • Run the Update Pending Transactions routine on the Purchase Ledger.Check and clear any transactions requiring authorisation.
  • Allocate as much cash as possible on all open item accounts.
  • Put under query any transactions that are not to be removed at the period end.
  • Print remittance advice with cheques, if using automated payment processing, otherwise ensure all posting and allocation of payments has been carried out.
  • Clear your suggested payments file.
  • Print your detailed VAT report and VAT Return.
  • Update the foreign currency exchange rates.
  • Print all reports you require for the period end:
    • Transaction Listing report.
    • Aged Creditors report.
    • Vatable Transactions report.
    • List of Accounts report.
    • Trading report.
  • Take a backup of your Purchase Ledger data files.
• Perform preparatory tasks in Cash Book

  • Check to see if you have any transactions waiting to be posted by running Report Pending Transactions in the Cash Book.
  • Update pending transactions on the Cash Book.
  • Reconcile bank accounts in the Cash Book.
  • Print nominal postings reports in the Cash Book.
  • Revalue foreign bank accounts in the Cash Book.
  • Process standing orders and direct debits in the Cash Book.
  • Take a backup of your database.
• Perform preparatory tasks in Stock, SOP and POP

  • Record stock movements either in the Stock Control module, or in the Purchase Order Processing or Sales Order Processing modules.
  • Accrue to the Nominal Ledger for invoices not yet received from the Purchase Order Processing module.
    • Reconcile your Stock Valuation report, to your stock account in your Nominal Ledger.
    • Run your Stock Month End and consider whether to delete the stock history (if the option is activated).
    • Run your Intrastat (SSD) report, if applicable.
    • Consider deleting purchase and sales order and invoice history, if the option is activated.
• Ensure you have printed and checked all relevant module reports required for end of period routines, including the VAT report and VAT Return.
• Check to see postings that are yet to be updated to the nominal accounts, by running View Waiting Postings in the Nominal Ledger.
• Run Update Waiting Postings in the Nominal Ledger.
• Print and store your Transaction Audit file for the month in the Nominal Ledger.
• Balance your ledgers for the period to ensure that system integrity is maintained.
• (Optional)Tidy up transactions on accounts in all modules by deleting any completed transactions.
• Take a backup of your data.
• Finally, close the accounting period you require for the Sales and Purchase Ledgers, Cash Book and Stock Control module.

Closing a period automatically opens the next one, if it is a Future period.

Note: Close the Nominal Ledger period last.

Go to top