Closing Process
Month-end closing schedule.
It is important to close each subsystem in order so that transactions are
recorded/posted correctly. The closing process has three key functions:
1. Identifies any unposted/unreleased transactions of the period that need to be
recorded.
2. Creates subsystem journal entries so the financial close can begins.
3. Provided a period of time that systems can be reconciled to the GL.
NOTE: It is recommended to reconcile subsystems immediately after closing the module
Month-End Close Schedule
For the Period Ending ____________________
DATE/TIME
(When)
SYSTEM
PERSON
RESPONSIBLE
JOB NAMES
PO35.1 – Receiving Approval
& Release
Last business
day or first
business day of
next month
Purchase
Order
PO135 – Received Not
Invoiced
PO199 – Subsystem Close
**PO190 - PO History Report.
This is an optional program **PO136 – Matched Not
Received.This is an optional
program - see KM article #
65501 - DO NOT RUN!!!
**MA180 – Open Receipt
Archive This is an optional
program - see KB article #
68648 - DO NOT RUN!!!
AP193 – Recurring Invoice
Update
Last business
day or first
business day of
next month
Accounts
Payable
AP170 – Payment Closing
AP175 – Invoice Distribution
Closing
AP190 – Invoice
Reinstatement
GL190 – Journal Posting
GL290 – General Ledger
Report
***AP136 – Invoice Accrual
Reconciliation
AP195 – Period Closing
*AP199 – Vendor Balance
Year End
IC222 – Unreleased
Documents
Last business
day or first
business day of
next month
Inventory
Control
IC25.1 – Document Release
IC130 – GL Interface
IC190 – Closing
Last business
day or first
business day of
next month
IC199 – Subsystem Close
CB175 – Bank Transaction
Posting
Cash Ledger
CB180 – Cash Ledger Void
Update
CB195 – Company Period
Close
AC190 – Activity Posting
TBD
Activity
Management
Capitalize Activities
AC195 – System Control
AM170 – Processing Release
TBD
Asset
Management
AM180 – Depreciation
Calculation
AM190 – Period Close
*AM195 – Year End Close
GL170 – Recurring Journal Interface
General Ledger
GL179 – Recurring Journal Close
Cost Allocations
GL190 – Journal Posting
CA110 – Allocation Calculation
CA190 – Allocation Interface
CA199 – Allocation Closing
GL190 – Journal Posting
General Ledger Reports GL291 (Optional) – Trial Balance
Month End Close
GL292 (Optional) – Balance Sheet
GL293 (Optional) – Income Statement
**GL199 – Period Closing
* Run at year end only.
** For Periods 1 – 11, run with limited close option.
*** In application version 8.0.3, the Invoice Accrual Reconciliation Report is found under AP260.
For Period 12, run once for each period of last year with final close option. Run again with
limited close option for period 12 of the current year.
Closing accounting periods can be an important part of managing your accounts
payables. Use the following procedures to prepare for and close a period.
Preparing for Period Closing
There are several important steps that you should complete to prepare for a period
closing. Each of these items is conditional, based on your particular way of doing
business and the timing of your period close. For example, if you just closed your cash
payment cycle, you would not need to run Payment Closing again. Use the following
procedure to prepare for period closing.
Use the appropriate forms to complete your preparation for period closing. Use the
following table to identify the tasks you should perform.
Use
System Control (GL01.1)
To
Verify the last period closed for the
Accounts Payable application and then
check to see that system control is turned
on.
Basic Invoice (AP20.1)
Release any invoice that has a manual
payment applied and has a check date
that is prior to the
period end date.
Taxed Invoice (AP20.2)
Batch Control (AP25.1)
Batch Review (AP25.2)
Release all invoices that have a postdate
prior to the period end date, or change the
posting date
using Basic Invoice (AP20.1).
Batch Release (AP125)
Invoice Release (AP26.1)
Mass Invoice Release (AP126)
Payment Closing (AP170)
Update cash payments, posting all system
and manual payments with dates prior to
the period end date. Run this program
once for a blank process level, and then
run it with each or your specific process
levels.
AP170 also reverses the unrealized gain
or loss entry and creates a realized gain or
loss general ledger transaction to reflect
any exchange rate fluctuation between the
invoice date and the payment date.
Invoice Distribution Closing (AP175)
Post all invoice and tax distributions using
a post through date equal to the period
end date. If you using intercompany
processing, run this program for each
company. You must run this program at
least once in an accounting period to
transfer released invoice distributions to
the General Ledger.
Standard Cost Calculation (PO139)
Calculate and create a reversing journal
entry for the difference between the
purchase order cost and the standard cost
for inventory items. This program is only
available for standard cost companies.
Paid Invoice Activity Update (AP178)
This form is only needed if you are using
Billing and Revenue Management and
have contracts with the “Exclude Unpaid
AP” option set to Yes.
List the transactions affected by the
payment status updates. If the status
indicates that the activity requires payment
information to be sent to Project
Accounting, AP178 will check if the invoice
is paid. If invoices related to distributions
have been paid, the Project Accounting
API removes the hold-not-paid status from
the Activity Transaction records (so the
transactions can be included on invoices
generated from Billing and Revenue
Management). When AP178 is run, the
output reflects the selected transactions
and lists those that were changed.
Invoice Reinstatement (AP190)
Reinstate invoices for voided payments.
Post all voided payments with a void date
prior to the period end date.
Unrealized Gain/Loss (AP191)
Calculate and create unrealized gain and
loss general ledger transactions for
payment accrual and unrealized gain and
loss accounts for companies that pay nonbase currency invoices.
Recurring Invoice Update (AP193)
To update recurring invoices. Normally,
Payment Closing (AP170) creates the next
recurrence of any recurring invoices it
processes. If you pay all recurring invoices
on or before their due date, you never
need to run this program. Run this
program if you have any unpaid recurring
invoices that are past their due date and
want to make sure the liability for the next
invoice recurrence posts to the current
period to be closed.
Employee Advance (EE20.1)
Release any advance or expense that has
a manual payment applied and has a
check date that is prior to the period end
date, or remove the payment information.
Employee Expense (EE20.2)
Company Expense Posting (EE175)
Update company-paid employee
distributions using the post thru date equal
to the period end date. If you use
intercompany processing, run this program
for each company.
Bank Transaction Entry (CB20.1)
Release all bank transactions and
reconciliation adjustments that have
posting dates prior to the period end date,
or change the posting date on the
transaction.
Reconciliation Variance Adjustment
(CB30.1)
Bill of Exchange Cashing Update (AP180)
Update BOE payments for the last year.
Bill of Exchange Distribution Posting
(AP185)
Update BOE distributions.
Closing a Period
Closing an accounting period is required only if you elected to use closing control in
General Ledger. If you are using closing control, you must close your Accounts Payable
period before you can close General Ledger. The closing control option is defined in
System Control (GL01.1). Use this procedure to close an accounting period.
Before you start
Before running the period close program, complete the required preparation steps to
ensure that your data is ready to be closed (see above section).
Steps to close an accounting period
1. Use Period Closing (AP195) to close an accounting period. Consider the following
fields.
Period
Type the general ledger accounting period
for which you are processing the accounts
payable closing. You define periods on
Company
(GL10.1).
Year
Indicate whether the period selected is in
the current or next general ledger fiscal
year.
Update
Unreleased
Invoices
Indicate whether you want to automatically
update unreleased invoices with a new
posting
date. If you have any unreleased invoices
with a
posting date in the period you are closing,
you
must do one of the following:
• change the posting date to a future
period
by selecting Yes in this field and running
this
program,
• change the posting date to a future
period
manually using one of the invoice entry
forms, or
• release the invoices and run Invoice
Distribution Closing (AP175).
Update
Unapproved
Invoices
Indicate whether you want to automatically
update the posting date on unapproved
invoices from PO to allow AP period
closing to occur.
2. Use Journal Posting (GL190) to post Accounts Payable journal entries to General
Ledger.
3. Use Invoice Accrual Reconciliation (AP136) to reconcile to General Ledger. This
program lists the difference between what has been paid (using AP170) and what has
been expensed (using AP175).
Related Reports and Inquiries
To
List released invoices for a vendor
group, pay group, or invoice
company to review invoice totals and
details for accuracy
Run
Open Payable Report (AP230)
Create an aged trial balance report
for a company, pay group, or vendor
group to forecast cash requirement
needs
Cash Forecasting (AP250)
List invoice transactions that make
up your invoice accrual account
balance as of the date you specify
Invoice Accrual Reconciliation (AP136)
List invoice payments
Cash Payment Register (AP265)
List historical invoice distributions
processed by Invoice Distribution
Closing (AP175) for a company
Invoice Distribution History (AP275)
List general ledger postings broken
down by accounting unit and account
Departmental Procurement Expense
Report (MM280)
Audit posted transactions by period
for a specific accounting unit and
account
Departmental Procurement Expense
Inquiry Selection (MM80)