Period Closing
- Accounts Payable
a.
Post invoices for all open/received
purchase orders.
b.
Post all pending invoices if received
from Vendor.
c.
Post and settle all payments.
d.
Run Currency revaluation
e.
Reconcile Vendor balance and trial
balance for control accounts.
f.
Set fiscal period on-hold for Vendor.
- Accounts Receivable
a.
Post invoices for all open/delivered
sales orders.
b.
Post all pending free text invoices.
c.
Post and settle all received
payments.
d.
Run Currency revaluation
e.
Reconcile Vendor balance and trial
balance for control accounts.
f.
Set fiscal period on-hold for
Customer.
- Cash and Bank
a.
Perform Bank reconciliation
b.
Set fiscal period on-hold for Bank.
- Procurement / Sales
a.
Review and Close all open
purchase/sales orders/Requisition if require.
b.
Perform sort closing of
purchase/sales orders if require.
c.
Set fiscal period on-hold for
purchase/sales.
- Production Control
a.
Post picking list and Route for the
current month production.
b.
Post RAF
c.
Post End production for current month
d.
Set fiscal period on-hold for
Production.
- Fixed asset
a.
Post all acquisitions or adjustments
(From inventory, project etc…) if require.
b.
Post all sales/scrap of assets.
c.
Run depreciation for the month.
d.
Reconcile fixed asset balance and
trial balance for control accounts.
e.
Set fiscal period on-hold for fixed
asset.
- Inventory Management
a.
Make sure all physical inventory is
posted as financial (Delivered/Received/RAF)
b.
Post all require inventory adjustment
journals.
c.
Post inventory counting
d.
Perform inventory adjustments if
require.
e.
Run inventory recalculation.
f.
Run Inventory closing
g.
Reconcile Inventory to trial balance.
h.
Set fiscal period on-hold for
Inventory.
- Tax
a.
Post adjustments if require.
b.
Generate require statutory reports as
per localization.
c.
Reconcile Tax transactions with Trial
balance/Vendor invoices/Customer invoices.
d.
Perform Tax settlements using
Declaration process (Both Direct and Indirect Tax)
e.
Reconcile Tax transactions with Trail
balance after declaration.
f.
Set fiscal period on-hold for Tax.
- General Ledger
a.
Post all adjustments in ledger.
b.
Post all provisions if require.
c.
Post all allocations.
d.
Post all Accruals if require.
e.
Generate all financial reports.
f.
Set fiscal period o-hold for Ledger.
- Consolidation
a.
Post all eliminations.
b.
Run fiscal period consolidation.
c.
Generate consolidated financial
statements.
Fiscal Year Closing
- General ledger parameters setup
- Define Retained earning Main account.
- Validate Main account type for all Main
accounts.
- Run fiscal year close.
This process defines all the business functions and
people in each of those functions that are required to be actively participating
in your year-end closing.
Define the task areas and templates with Due date and time for users to work on:
Task areas and templates define the business function. You can define each of the business functions that are involved in the closing activities.
Define Calendars and Closing schedule for closing:
Calendars define the working days that can be
utilized for scheduling the closing tasks.
Accounts
for Automated Transactions – For Profit Transfer
This is require as system has to identify the
account for transfer of all profit and loss account’s balance.
Check to make sure you have a fiscal calendar
created for the following year (2021). If not create before further
process. As we need opening balance in next year (2021).
There are certain other process also but I am not
going to explain in this blog, such as “Closing Period Adjustments”
Other
Closing Process
Now that we are all setup, let’s go to General
ledger> Period close> Year end close
Group
– Year end close
As you can seen in this screen, you can create
multiple groups based on Financial Calendars. In this case I have created Group
for US based companies which follows same Financial Year (Jan-Dec). In one
group you can add multiple legal entities and you can define Transfer of
Balance sheet combination for each legal entity.
Transfer of Dimension:
if you want to transfer balance sheet dimensions or
not by toggling the switch. This is optional, but it is considered best
practice to have switched to Yes. Also, determine which dimensions
for profit and loss accounts you would like to transfer. The Close
all option will close all dimensions used for that main account and
dimensions. So, if there were multiple transactions to the same main
account, but to different business units, this option would create opening
balances for each main account – business unit segment. If you
choose Close one then you must select the financial dimension to
close to. The financial dimension you close to will take all the transactions
from the main account – business unit segment.
Year
end process
Now you can “Run fiscal close” and select Single or
Multiple Legal entity from selected group.
unylMnabo_Madison Andrew Payne https://wakelet.com/wake/kzA9hHjZWisa4BC3rAHqq
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