The month closing application will allow you to close a month from the accounting side. This is done by choosing the date for the last booking on the month you would like to close.
This procedure prevents clerks to add economic activities to earlier months. The article is intended for US customers.
Once the month closing procedure has been ran, any non-resolved estimates will be pushed to the next open month by changing the estimate booking date to the first date of the open month.
Important Dates in Scope for the month closing procedure.
Economic Date: is the date when the shipment is executed. You can choose whether the economic date should be the order date or the date of the main transport. For export shipments the economic date is the ETD and for import shipments the economic date is the ETA. Once an invoice is finished, the economic date cannot be change.
Booking Date: The booking date is the financial date of the job costing entry. It defaults to the economic date unless the financial booking month is already closed by accounting. Then the first day of the last open month will be used as booking date. The booking date can be used instead of the economic date in several reports, and it is helpful for accounting to determine the Income, Cost of Profit for closed booking month as the figures will not change once closed.
Reports
Monthly Settlement can be used to generate reports, which are "fixed" and will not be changed after a month is closed. Any new items created are added to the actual report for all open months, leaving the closed month unchanged.
Before executing the month closing procedure, we suggest running the “Work in Progress” report to make sure Estimates have been resolved.
Please note that Monthly Settlement is only valid for the whole entity, it is not possible to create a monthly settlement per branch on different times.
Example of setting the close date: The last possible day of booking for the Month of February is set to 16.03.2018. Then assume that you are working on a February shipment, and you create an accounts receivable on 16.03.2018. From the accounting point of view, this will be added to the month of February. However, if you create an accounts receivable on the same shipment but after the close date, for example on 19.03.2018, this amount will be booked on the month March because February is closed and nothing can be added to it.
Month closing (Monthly Settlement)
To close the actual month, you have to go to application Finance > Accounting.
There you can see the last open month, and you can start monthly settlement by choosing
Close Month.
Close Month
Closes last open month.
Re-Open Month
Re-Open the last closed month. Keep in mind that any reporting issued before re-opening of the month may now be invalid from any changes, and you may have to re-create them.
Estimates
For an overview of all open and dissolve accruals, go to the application Estimates:
Finance > Estimates