Accounts Payable End of Month

Introduction

The Advantos Enterprise A/P module has its own month-end processing routine aided by a specific checklist to guide you through the process. This process balances totals, prints monthly reports, and purges data no longer needed. It also updates vendor balances and totals, cleans up paid and posted invoices, and clears out all paid invoices, checks, and purchase orders older than the 'Archive.Info' value in the System Table. Once this process is completed, A/P will be ready to operate in the next monthly accounting period.

One key point to understand is the Financial Period, defined as a month and a year, which displays on the main screen for each module. Payroll must be updated prior to A/P. This ensures that all tax invoices are processed in the payroll month. The G/L update cannot be done until after A/P has been updated. Note that the A/P module cannot be maintained more than one month in advance of the G/L module.

Below is a checklist for the A/P month-end process. No transactions should be entered while you are in month-end processing.

A/P End-of-Month Checklist
Process Final Check-Run Before starting the end-of-month update, complete the LAST check run for the processing month, including any voided checks or other corrections.
Set End-of-Month Processing Flag From the Accounts Payable menu, select End of Month → EOM Flag. Click on Create to set the flag. Setting this flag restricts the ability to post additional transactions. Anyone without update or system administrator security levels will receive an error message if they attempt to enter transactions.
 
Balance Next 3 Report Totals: View the next 3 reports, verifying the same data has been posted in the Bank Account module (bank totals), the A/P module (check totals), and the G/L Cash (cash totals). If discrepancies exist they need to be researched and corrected before proceeding with month-end processing.
A/P Bank Totals This report reflects the Bank Account transaction totals having an A/P module source. From the Banking System menu, select Banking Reports → Bank Account Totals. Use the drop down to select Journal type Accounts Payable.
A/P Check Totals Located under the Accounts Payable menu, Payables Reports → Invoice Reports → Paid Invoice Reports. This report totals all A/P checks issued in the current monthly period. It should indicate how much has been spent through the A/P System during the month. The checks issued are maintained in a separate file and will need to be balanced with other files keeping track of payments made through the A/P module.
A/P Posting Cash Totals Located under the Accounts Payable menu, Payables Reports → G/L Postings Reports. This report totals all CASH transactions posted in the A/P System during the current Financial Period month. This file is separate from the checks issued file and is the only file from which data is updated to the G/L module. You do not want this value to differ from other files also tracking how money has been paid during the month.
 
View & Verify
Trial Balance Located under the Accounts Payable menu, Payables Reports → G/L Postings Reports. This report must balance to 0.
Unpaid Invoice/Vendor Balance Located under the Accounts Payable menu, Payables Reports → Invoice Reports → Invoice Reports. This report adds all unpaid invoice amounts for one total and all vendor balances for another total. These two totals MUST balance.
 
Optionally Print & Save: The following reports may be printed (or saved as a PDF file in a directory on your network). The reports may be produced at any time. The decision to save a paper or electronic copy is dependent upon your local processes.
Monthly Check Register This report is located under the Accounts Payable menu, Payables Reports → Check Registers. This report provides all the information found on a check copy and acts as an index of all invoices paid during the month.
A/P ALL Invoice Listing Located under the Accounts Payable menu, Payables Reports → Invoice Reports → Invoice Reports. This report prints all invoices still on the system. These invoices are broken down by unpaid and paid items, with totals for each category. It also includes any item paid in a prior financial period but was posted to either the financial statements in the current financial period or will be posted some future financial period. This report is usually included with the financial reports sent to clients each month.
Paid Invoice Register Located under the Accounts Payable menu, Payables Reports → Invoice Reports → Paid Invoice Reports. This report reflects the invoices posted and paid in the current financial period. The data is sorted by G/L account number. This is very useful when you want to know what was paid and posted to a particular G/L account number in the financial statements.
 
Print or Save The following reports are point-in-time reports and can serve as a month-end snapshot. The reports may be printed and filed - or a copy of the PDF may be stored to a designated directory on your local network.
Vendor Name/Income Located under the Accounts Payable menu, Payables Reports → Vendor Reports. This report is a snapshot of vendor financial information at the time the report is run. Since it is being run during this end-of-month, this data is the final vendor balances for the current financial period.
Open Work Order Report Located under the Accounts Payable menu, Payables Reports → Work Order Reports. This report is provides a listing of open work/purchase orders.
 
Process End-of-Month Update The process will update A/P to the new month for all clients on your system. Vendor month-to-date data is cleared, paid and posted invoices are deleted, current postings are updated to the G/L System, and finally, the current processing month is set forward one month. Also the year-end update will automatically occur when updating December of any year. When you are ready to being the update - from the Accounts Payable menu, select End of Month → EOM Update. Click on Proceed
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