Month End Closing Procedures Overview: Throughout the month journal entry transactions are created by processing of accounts payable, accounts receivable, billing, cash receipts, etc. The following is a checklist of recommended steps and reports to complete a month end closing. A listing of sub‐ledger reports is included to assist you in determining if the general ledger accounts are in balance to their related sub‐ledger reports. It is recommended that this balancing routine is performed monthly as part of the month end closing process. For the purpose of tying out, it is important to choose reports that are selected based on the posting period (rather than only by date). Other important information related to balancing is addressed in this document, i.e., processes to avoid and how to research out of balance accounts. A listing of standard accounting journals and other analysis reports is also included that you may consider reviewing as part of your month end close process. Closing Process Checklist General Ledger Closing Process Process Instructions Close Posting Periods After all entries related to A/P, A/R and Time Entry have been completed, close the related module’s posting periods. Note the settings of the modules are independent of each other and can be closed at different times. Set these modules as “Current” for the next Posting Period. If using the Close Posting Period application, this will occur automatically. Leave the GL as current and the next month should be set as “Open”. Update to Summary The Update to Summary process can be performed as often as needed, but must be run at least once a month. The Update to Summary application summarizes all journal entries that have not been posted to the General Ledger Summary Table. This must be run prior to the printing of financial statements. Bank Reconciliation Prepare the Advantage bank reconciliation and print the related report in Advantage. Journal Entries Use the journal entry options to standardize and automate manual journal entry processing: 
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Print the Trial Balance Query Report Manual Journal Entries Recurring Journal Entries Import Journal Entries Allocations Use the Trail Balance Query Report to compare and confirm that key GL account balances corresponds to their related sub‐ledger report. Page 1 of 7 Accounts Payable and Accounts Receivable Sub‐Ledger Reports Report Report Location Accounts Receivable Advantage | Accounting | Reports | Month End Reports Accounts Payable Advantage | Accounting | Reports | Month End Reports Production Sub‐Ledger Reports Report Report Location Production WIP Advantage | Accounting | Reports | Month End Reports Deferred Sales Advantage | Accounting | Reports | Month End Reports Production WIP – Several of these reports include the deferred sales balance information Accrued AP Advantage | Accounting | Reports | Month End Reports | Accrued Liability Accrued Cost of Sales Adassist | Accounting Reports | Accrued Cost of Sales Media Sub‐Ledger Reports Report Report Location Media WIP / Accrued AP Advantage | Accounting | Reports | Month End Reports Deferred Sales – Media Adassist | Reports | Accounting Reports |Media Sales Reports Applies to companies where Report 6‐Media Commissions Billed (Period, Client, IO) – V2 with Media Pre‐bill Income report options selected: Recognition is set to From Period and To Period: Balancing Period “Insertion/Broadcast” or Include: Deferred as of To Period Only “Close Date” only The Billing Amount column will equal the deferred sales media general ledger account Deferred COS – Media Adassist | Reports | Accounting Reports |Media Sales Reports Applies to companies where Report 6‐Media Commissions Billed (Period, Client, IO) – V2 with Media Pre‐bill Income report options selected: Recognition is set to From Period and To Period: Balancing Period “Insertion/Broadcast” or Include: Deferred as of To Period Only “Close Date” only The Net Amount column will equal the deferred cost of sales media general ledger account Page 2 of 7
General Ledger Financial Statements Report Report Location Balance Sheet Advantage | General Ledger | Report Writer | Report List Income Statement Advantage | General Ledger | Report Writer | Report List Detail Trail Balance Advantage | General Ledger | Queries & Reports | Detail by Acct Code Report Summary Trail Balance Advantage | General Ledger | Queries & Reports | Trial Balance Query Client Profitability Reports ‐ Client‐Level reports that tie back to the Income Statement (Sales/COS) Report Report Location Client Profit & Loss Adassist | Management Reports | Client Profit & Loss Reports Various reporting options are available at a detail or summary level including the ability to include or exclude overhead allocation Standard Accounting Journals ‐ Additional Reports you may want to review. Report Report Location Cash Receipts Journal Adassist | Accounting Reports | Cash Reports by Period Check Register Adassist | Accounting Reports | Check Register Client Cash on Account Adassist | Accounting Reports | Client Cash on Account Client Costs by Vendor Adassist | Accounting Reports | Client Costs by Vendor Direct Expense Report Adassist | Accounting Reports | Direct Expense Report Disbursement Journal Adassist | Accounting Reports | Check Register Invoice Register Adassist | Accounting Reports | Invoice Register Outstanding Bank Transactions Adassist | Bank Reports | Outstanding Items Listing Purchase Journal Adassist | Accounting Reports | Accounts Payable Reports | Debit Account Detail Sales Journal Adassist | Accounting Reports | Sales Journal Vendor Charges by Job Adassist | Accounting Reports | Vendor Charges by Job Vendor Invoice by Client Adassist | Accounting Reports | Vendor Invoice by Client Page 3 of 7
Processes to Avoid Below is a listing of processes that should be avoided It is important to understand the transactions posted to the general ledger accounts used in processing of accounts payable, billing and cash receipts are controlled by the system. These general ledger accounts include:  Accounts Payable  Accounts Receivable  WIP  Deferred Sales (Media and Production)  Accrued Cost of Sales (Media and Production)  Accrued Accounts Payable (Media and Production)  Sales (Media and Production)  Cost of Sales (Media and Production) These accounts should not be used when processing the follow types of transactions.  Manual, recurring, imported and allocation journal entries  Accounts payable transactions posted on the non‐client tab  Bank reconciliation application entries for service charge, interest earned, electronic transfers and other miscellaneous entries  Client cash receipt adjustments and on account entries  Other cash receipts When posting client cash receipts on account transactions we recommend picking one account code to use. For example, post the transaction to the accounts receivable account or a client prepayment account. How to Research Out of Balances Between General Ledger Accounts and Sub‐Ledger Reports Accounts Payable and Accounts Receivable Accounts Report / GL Out of Balance Research Instructions Research Report Locations Accounts Payable Print the two reports under Reconciliation – Accounts Payable, Purchase Journal (By Credit Account) and Cash Disbursements Journal (By Debit Account) and compare to the General Ledger Detail by Account Code report Adassist | Accounting Reports | Reconciliation – Accounts Payable Print the Reconciliation – Accounts Receivable Report(s); these reports will flag the transactions that are causing variances Adassist | Accounting Reports | Reconciliation – Accounts Receivable Accounts Receivable Advantage | General Ledger | Queries & Reports | Detail by Account Code Report Page 4 of 7
Production Accounts Report / GL Out of Balance Research Instructions Research Report Locations Accrued AP (Accrued Liability) Print the Sales Journal Report 25‐Sales Adassist | Accounting | Sales Journal Journal (Advance Billing Breakdown) Advantage | General Ledger | Queries & with Job Description report the General Reports | Detail by Account Code Report Ledger by Account Code report for the accrued accounts payable account and compare the Advance Billing Net column to the general ledger transactions posted (positive net amounts on the sales journal report are credits to the general ledger account, negative amounts are debits) Accrued Cost of Sales Print the Accrued Cost of Sales Report by Client/Division/Product and the General Ledger by Account Code report for the accrued cost of sales account and compare Adassist | Accounting | Accrued Cost of Sales Advantage | General Ledger | Queries & Reports | Detail by Account Code Report Deferred Sales For the period out of balance, print the Adassist | Accounting | Sales Journal Sales Journal 1‐Detailed Sales Journal Advantage | General Ledger | Queries & and the General Ledger by Account Code Reports | Detail by Account Code Report report for the deferred sales account and compare the Advance column on the sales journal report to the general ledger transactions posted Production WIP For the period out of balance, print the Work in Process – 5‐Production WIP Activity by GLXact report and the General Ledger by Account Code report for the WIP account and compare Adassist | Accounting | Work in Process Production Advantage | General Ledger | Queries & Reports | Detail by Account Code Report Page 5 of 7
Media Accounts Report / GL Out of Balance Research Instructions Media WIP / Accrued AP Print the Reconciliation – Media WIP Adassist | Accounting Reports | Report, these reports will list the general Reconciliation – Media WIP ledger transactions and flags what is causing the variance(s) Deferred Sales – Media Report 6‐Media Commissions Billed (Period, Client, IO) – V2 and the general ledger by account code report for the deferred sales – media account and compare Applies to companies where Media Pre‐bill Income Recognition is set to “Insertion / Broadcast” or “Close Date” only Adassist | Reports | Accounting Reports |Media Sales Reports Advantage | General Ledger | Queries & Reports | Detail by Account Code Report On the 6‐Media Commissions Billed report the “Amount” column will equal the Deferred Sales Media account Deferred COS – Media Report 6‐Media Commissions Billed Applies to companies (Period, Client, IO) – V2 and the general ledger by account code report for the where Media Pre‐bill Income Recognition is deferred cost of sales – media account and compare set to “Insertion / Broadcast” or “Close Date” only Research Report Locations Adassist | Reports | Accounting Reports |Media Sales Reports Advantage | General Ledger | Queries & Reports | Detail by Account Code Report On the 6‐Media Commissions Billed report the “Net Amount” column will equal the Deferred COS Media account Page 6 of 7
GL Entry Query The GL Entry Query found under Adassist Queries is a great tool for researching the transactions posted to a general ledger account. This query allows you to select a range of posting periods and accounts and save the information to Excel. Note: This query will also be available in Advantage v6.20 in the General Ledger module. To run this query: 1. Select the Posting Period(s) 2. Select the General Ledger Account(s) 3. Click on Run Query 4. Click on Send to Excel 5. You will be prompted to save the file, accept the file name GLDetailQTrans.xls or enter a different file name, select a location and click OK to save Page 7 of 7