MANUALS > G/L Interface > G/L Interface Module > G/L Interface, Update Menu > Monthly Financial Procedure - Running a Month End Closing

Monthly Financial Procedure - Running a Month End Closing

The three step process that follows is done every month when closing out inventory costing/balance.

Note: Make sure that the Fixed Asset Depreciation has been completed before performing the Month End Closing. Refer to the Monthly Financial Procedure - Running Fixed Asset Depreciation section of this manual for more information.

1. Run an Inventory Costing and Balance Reconciliation (G/L Interface/Print/Inventory Costing > Inventory Costing and Balance Reconciliation).

This report will show the differences between the inventory costing and inventory balance.

Investigate the differences and manually apply fixes as required. Make sure to do this step before the end of the month so that fixes will be applied to proper month.

2. Run an Inventory Costing and Balance Adjustment (G/L Interface/Print/Inventory Costing > Inventory Costing and Balance Adjustment).

This report is run after the reconciliation of Step 1 to apply the adjustments to the Balance.

This report will use the costing value and quantity to correct the balance value and quantities by writing the value and quantity adjustments.

Note: You can now run the Inventory Costing and Balance Reconciliation (Step 1) again to see that the costing and balance now match.

3. Run an Inventory Balance (G/L Interface/Print/Inventory Costing > Inventory Balance).

This report will show a beginning balance, transactions balances (i.e., scrap, order receiving, etc.) and an ending balance.

Review this report before a decision is made to close out the month.

This report should be run on the first day of the month against the previous month.

This report can also be run at anytime against the current month to get a preview as long as the month is not closed.

Note: Steps 1 and 2 must be run against the current month. This must be performed before the month is over as it cannot be run against a month that has already passed. It is recommended that they be performed at the beginning of each month, at the middle, then once again near the end. This will help keep better track of any changes made against the balance.

Note: As an alternative to the inventory monthly parameters, users can organize their inventory closings by periods. This functionality is based on G/L Interface Switch INVBALPERIOD being set to Yes. When set to Yes, the Inventory Costing and Balance prints refer to the pre-determined date Periods created in the Inventory Balance Periods window instead of the months if the year. When set to No, the Inventory Costing and Balance prints refer to the months of the year instead of Periods. For more information refer to Switch INVBALPERIOD via the G/L Planning Switches Manual and the Inventory Balance Periods window via the G/L Interface Training Manual.

Features that are available through this functionality are as follows:

• Inventory Balance Reports
• Inventory Costing Reports
• Inventory Costing (Reconciliation and Adjustment)
• Inventory Costs and Operating Costs (Prints)

Monthly Financial Procedures