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Last modified on 1/23/2018 1:28 PM by User.

AP Month End Balancing & Procedures - Interface Only Once a Month

If obtaining the A/P to G/L Interface more than once per month, please see the document titled:  “A/P Monthly Balancing & Procedures -- Interface More Often Than Once a Month”.

The following reports are to be run at the end of each accounting month, and KEPT in a permanent binder, along with the voucher posting journals and check registers.   If you have the email package, the reports may be e-mailed to yourself, saved on the network, and may be printed as needed.  Also note that once these reports are run and AP is balanced for the month, nothing should be entered into AP with that month's date.

Note:  These procedures should be coordinated with the personnel working with the Purchase Order Module using Vendor Invoice Entry & Editing (Task 3), Vendor Credit Memo Entry & Editing (Task 5), the printing of Received Items (Task 22) and the printing of Shipped-back Item (Task 23).  They should also coordinate with the Inventory Modules Month-end procedures.  

We recommend balancing AP on a daily basis.  Please see the documents titled: “A/P Daily Balancing” and “A/P Daily Balancing Spreadsheet Example”. When A/P is balanced daily using a spreadsheet (or notebook) the month-end balancing procedures go much faster.

 

 

Interfacing in the A/P vs. Interfacing in G/L

We have now taken out the need to run the interface report in A/P module. The report and the posting of A/P to G/L is done in:

  • General Ledger (Module 4)
    • Post Interface Transactions (Task 2)

If you still wish to run a report before posting, you may either print the report and reject the posting in Task 2 or run the A/P to G/L Interface report in:

  • Accounts Payable (Module 3)
    • System Management Functions (Task 32)
      • Generate A/P to G/L Interface (Sub-Task 3)

Note: This will no longer post to G/L - it will only generate a report. 

Step 1 – Print & Balance the A/P to G/L Interface report:

We recommend balancing Accounts Payable daily.  Please see document titled:  A/P Daily Balancing.  When A/P is balanced daily using a spreadsheet, the month end balancing procedures go much faster.  Adding up the voucher postings and check registers is already done on the spreadsheet.

  • General Ledger (Module 4)
    • Post Interface Transactions (Task 2)

 

Beginning date: Use the beginning date of the month that is being balanced. For example if January 20xx is being balanced, the beginning date would be 01/01/xx.

Ending date: Use the last day of the month that is being balanced, using the above example the date would be 01/31/xx.

Include previously interfaced vouchers?: Y If obtaining the A/P to G/L Interface only once per month the answer to this question is Y.  If obtaining the A/P to G/L Interface more than once per month, please see document titled A/P Monthly Balancing & Procedures -- Interface More Often Than Once a Month.

  • LOOK FOR SCREEN MESSAGES:
    • Bad division: XX in voucher history, vch#:001276
      • This message means this voucher # has a bad division # in Task 19 Voucher history.  Jot down the voucher #.  This needs to be corrected in the Voucher history and the A/P open items.  Be very careful when making any changes in these files.  Making incorrect changes could cause an imbalance.
    • Voucher #:001385 document $ DOES NOT EQUAL DIST $
      • This message means this voucher # needs to be corrected in Task 19 Voucher history.  The voucher amount on the first screen doesn’t equal the G/L distributed amount on the second screen. Be very careful when making any changes in these files.  Making incorrect changes could cause an imbalance.

 

  • WARNING MESSAGES PRINTED ON TOP OF A/P TO G/L INTERFACE REPORT:
    • Example:  Voucher#:000913, doc date:0409xx, WARNING - VOUCHER HAS NOT BEEN INTERFACED TO G/L  This message indicates the voucher(s) listed have not been interfaced, therefore never accounted for in the G/L, however the voucher(s) would be listed on the A/P Aged Trial Balance.  This would cause the G/L module to be off.
    • Example: Voucher #:001082, pay date:04/09/xx, WARNING – PAYMENT HAS NOT BEEN INTERFACED TO G/L. This message indicates the payment(s) listed have not been interfaced to the G/L module.  This would cause the G/L module to be off. 
    • Find the Voucher #’s listed on the message.  Were they posted for a previous months date by mistake?
    • See document titled Message: "Warning: Voucher Not Interfaced"  follow the instructions on this document before continuing.
    • THESE MESSAGES MUST BE CORRECTED BEFORE CONTINUING
  • There should be NO UNKNOWN ACCOUNTS on the A/P to G/L interface report. The UNKNOWN ACCOUNT must be corrected in Task 19 Voucher history before going any further. The G/L module won’t accept an A/P to G/L interface with an unknown account.

    • IMPORTANT NOTE: The posting will be rejected if a selected interface has any unknown G/L account #’s.  The unknown G/L account #’s will need to be corrected in the individual module maintenance history files. Pay attention to any messages on the screen for unknown G/L account #’s so corrections can be made.

  • Verify on the very last page of the Interface, that the bottom line division totals debits & credits are the equal

  • The system will then ask to post the G/L Posting Register - verify the bottom line division totals debits & credits are equal

  • Posting of records ok? 

    • If the debits and credits are equal and there are no errors, type "YES" and enter.

    • If the debits and credits do not equal or there are errors, type "No" and make the necessary corrections

 

NOTE: IF MAKING ANY CHANGES IN TASK 19 Voucher history or Task 21 A/P Open items be very, very careful.  Proper accounting procedure requires that you keep a complete audit trail of all mistakes and corrections. Also, if you do not fully understand the system, you may not change all the affected master files correctly, and actually create imbalances that would be extremely difficult to figure out later.

  •  BALANCE THE A/P to G/L Interface REPORT:
    • The information for this report comes from the Voucher History File.
      • The increase in Accounts Payable on the A/P to G/L interface should equal the sum of the Voucher Postings.
      • Prepaid and Regular checks on the A/P to G/L interface should equal the sum of the "Check Amount" on all of the check registers for the month.
      • Prepaid and regular discounts taken on the A/P to G/L Interface should equal the sum of the "Discount Amount" on all of the check registers for the month.
      • Reduction in Accounts Payable on the A/P to G/L Interface should equal the sum of the Prepaid and regular checks and the prepaid and regular discounts taken.
    • Recommended procedures are:

      • Staple the calculator tape from the addition of each individual Voucher Posting to the A/P to G/L interface report.  Or, if balancing A/P Daily, print a copy of the spreadsheet and attach it to the A/P to G/L interface report.  The spreadsheet should have a column for the voucher postings, with a total at the bottom. This column total should equal the Increase in Accounts Payable on the A/P to G/L interface report.  See our website at: www.mvsalliance.com for the documents:  A/P Daily Balancing and A/P Daily Balancing Spreadsheet Example. 

      • Staple the calculator tape from the addition of each individual check register to the A/P to G/L interface report.  Again, if balancing A/P Daily, the printed copy of the spreadsheet should be attached to the A/P to G/L interface report.  The spreadsheet should have a column for the check registers, with a total at the bottom. This column total should equal the Reduction in Accounts Payable on the A/P to G/L interface report.

      • If they do not equal, check the figures on the spreadsheet to see if something was entered incorrectly.

      • Check the Voucher Postings to see if any voucher has a date before or after the month.

      • If that does not account for the problem, then check the Check Registers to see if any checks have a date before or after the month that is being balancing. 

      

 

Step 2 – Print & Verify total on A/P Aged Trial Balance report

  • Aged Trial Balance (Task 9)

Task #9 has multiple aging reports, we recommend using #3.:

#1 - Quick Aging Summary from Vendor File Numerical (APTSMN) gets the information from the Vendor Master File (Task #17).  The information in the Vendor master file includes everything that is posted.  So if you are balancing February 2010 A/P and it is now 03/10/10, and vouchers or checks have been posted with March 2010 date, you can’t get this report for the previous date of 02/28/10.  The APTBAL report is recommended.

#2 - Quick Aging Summary from Vendor File Alphabetical (APTSMA) gets the information from the Vendor Master File (Task #17).  The information in the Vendor master file includes everything that is posted.  So if you are balancing February 2010 A/P and it is now 03/10/10, and vouchers or checks have been posted with March 2010 date, you can’t get this report for the previous date of 02/28/10.  The APTBAL report is recommended.

#3 - Aged Trail Balance with Optional Detail (APTBAL) This report is based on the information from the AP Open Items File (Task #21). This report should be printed and saved.  If balancing A/P daily, this report would have been checked, to the screen, against the spreadsheet daily.  But it should still be printed and saved, and the total verified against the spreadsheet.  If you have the optional email package, this report may be emailed & saved digitally.  

Options for aging reports #1 and #2 are:

  • Skip Zero Balance Accounts: Y/N
  • Reports can be run by selected "vendor types" OR all "vendor types"
  • Reports can be run by selected vendor numbers (report #1) or vendor names (report #2) OR all vendors by number or name.

 

Options for recommended aging report #3 are:

  • Aging date: if using for balancing purposes use the last day of the month.
  • Aging basis (1)Due (2)Document: 2
  • Print item detail ? Y/N, use YES if using report for balancing purposes
  • Document cut-off date: use the last day of the month if using the report for balancing purposes.
  • Starting and ending division: Press Enter key for ALL.
  • Please enter vendor type  Press Enter key for ALL
  • Numeric or Alphabetic Order (N or A): N
  • Starting and ending vendor #: Press Enter key for ALL.

 

If using aging report #3 for end-of-the-month balancing, use the following steps:

Using an adding machine, add the previous month's ending accounts payable total to the total of the current month's posted vouchers, then subtract the total of the current month's posted checks paid and discounts taken. The result should beequal to the GRAND TOTAL balance on the Aged Trial Balance report.  However, if you are balancing A/P Daily, this is done on the spreadsheet. 

Note: If the A/P to G/L Interface and the A/P Aged Trial Balance reports are printed and all of the recommended figures on them are verified, the A/P to G/L interface may be obtained and posted in the General Ledger module.   Although, the obtaining and posting of the interfaces in the General Ledger module is part of the General Ledger module Month-End Procedures, the person in charge of those procedures should be notified when the A/P procedures are completed.  Also, part of the General Ledger Month-End Procedures is to assure the total on the A/P Aged Trial Balance report equals the ending balance on the Accounts Payable G/L account.

 

 

Step 3: Vendor History File

  • Vendor History. File maintenance (Task 18).
  • Check to make sure the "unused vendor history records" has enough records. There must be at least as many “unused” records as you have vendors..

Use Subtask # 7: Adjust size of vendor history file.

 

Step 4:  Build Vendor History Records

  • System Management Functions (Task 32)
    • Build monthly vendor history records (Sub-task 4)

 

This subtask builds a summary of the totals for each vendor for each month. This subtask pulls the information from the Voucher History File.  1099’s are printed using the information from Task #18 Vendor history, so it is important this task is completed.

1. This should be done only once for each month. The program will not allow you to run this subtask twice for one month if there are any records in the month. If you try, a message appears: "Vendor history record already exists. CR TO CONTINUE." When CR (Enter key) is pressed, the system will go back to the System management subtask screen.

2. If a vendor has, for example,  10 vouchers for one month in the Voucher History File (Task 19), this subtask consolidates them into one record and stores it into the Vendor History File (Task 18).

3. The information stays in the Voucher History until purged.

Answer the single, system prompt as follows:

Type in the date of the month being balanced. (For example if November of 20xx is being closed, type in 11xx. Please note that only the month and the year are used, not the day of the month.)     

 

 

The following reports are OPTIONAL month-end reports.  Management may use them for various reasons.

Report 1.

  • Voucher History (Task 19)
    • Sort Existing Vch History Records (Sub-task 6). Answer system prompt as follows:

Are you sure you want to sort the file ? (YES/NO):" Answer YES to do the sort.

  • Print Existing Vch History Records (Sub-task 4) After the printer screen appears, answer system prompts as follows:

Starting and ending batch number: Press Enter for ALL.

Starting and ending vendor #: Press Enter for ALL.

Please enter vendor type(s)? Press Enter for ALL.

Starting and ending division #: Press Enter for ALL.

Starting invoice date: Use the first day of the month being balanced.

Ending invoice date: Use the last day of the month being balanced

Starting and ending check #: Press Enter for ALL.

Starting and ending voucher #: Press Enter for ALL.

Suppress detail records? (YES/NO): YES.  Suppressing detail on this report prints just the totals page.  NO to suppress detail will print every voucher that was paid or vouchered during the month.  It is up to you which way to print this report. But the totals should be checked and verified.

Ø      The regular entries on the Voucher History report should equal the sum of the voucher postings.  This should also equal the total of the Voucher column on the Daily Balancing Spreadsheet.

Ø      The "paid entries within date range" on the Voucher History report should equal the sum of the check registers.  This should also equal the total of the Check Register column on the Daily Balancing Spreadsheet

If they are not equal, check the figures on the spreadsheet to see if something is typed incorrectly.

Check the Voucher Posting registers to see if any voucher has a date before or after the month.

Check the Check Registers to see if any checks have a date before or after the month  being balancing. 

 

 

 

Report 2.

  • A/P Expense Distribution (Task 11). After the printer screen appears, answer the system prompts as follows:

Starting Date: Use the first day of the month being balanced.

Ending Date: Use the last day of the month being balanced.

Vendor #: Press Enter for ALL.

Starting and Ending G/L account #: Press Enter for ALL.

Starting and Ending Dept #: Press Enter for ALL.

Print item detail?(Y/N): Answer Y for YES.

Payor division #: Press Enter for ALL.

Expense division #:Press Enter for ALL

 The information for this report comes from the Voucher History File.

Ø      The Total Vouchered should equal the sum of the Voucher Postings.

Ø      The Total Paid should equal the sum of the Check Registers.

 

Report 3.

  • Voucher History by Check (Task 14 List by check number, all the vouchers paid for on the check. After the printer screen information appears, answer the system prompts as follows:

Starting and Ending Vendor number: Press Enter for ALL.

Starting Paid Date: Use the first day of the month that is being balanced.

Ending Paid Date: Use the last day of the month that is being balanced.

Starting and Ending Check Numbers: Press Enter for ALL

Suppress Detail Records (Y/N). If NO is selected, then the voucher #, vendor #, discounts taken at the time of payment and net payment will be shown.

The information for this report comes from the Voucher History File.

Ø      The Grand Total of the Document Amount should equal the Reduction in Accounts Payable figure on the AP to GL Interface.

Ø      The Grand Total of the Discount Taken should equal the Pre-paid & Regular Discounts Taken on the AP to GL Interface.

Ø      The Grand Total of the Net Amount should equal the Pre-paid & Regular Checks on the AP to GL Interface.

 

 

Report 4.

  • Vendor History. File Maintenance (Task 18)
    • Print Selected History Records (Sub-task 4) Answer system prompts as follows:

 

1099 Vendors Only: Yes/No

Starting Vendor Numbers: Press Enter for All

Starting and Ending Dates: Use Month and Year of the month being balanced.

Answer YES to suppress detail.

Ø      The bottom line total should equal the sum of the Voucher Postings

 

 

Report / Function 5.

  • System Management Functions (Task 32)
    • Clear Paid Vouchers from A/P Open (Sub-task 7)
      1. Used when Task #21 (A/P Open Items) needs to be expanded and the task doesn’t have enough room.
      2. Also used when reports are taking too long  to generate, therefore clearing/erasing some old data will help speed up the process
    • Answer system prompts as follows:

 

Paid voucher cutoff date:

·        Only the vouchers that have been paid will be removed.

·        Do not use any date earlier than the last day of the PREVIOUS month being balanced. For example, if balancing November of 20xx, the cutoff date would be 09/31/xx (the last day of September).   

·        RECOMMENDED:  If you prefer to keep data for 2 years, the cutoff date would be the last day of the fiscal year two years ago.  REASON: if a check needs to be voided and the voucher has already been cleared, you will get the system message stating the voucher is not in A/P Open Item, and the voucher must be there in order to void the check and mark the voucher available for payment  (or other action) again.

 

 

Report / Function 6.

  • Checking Account (Task 20)
    • If using this task to reconcile the bank statement the report will need to be coordinated with the reconciliation because records are erased when reconciling.   
    • Sort Existing Check Records (Sub-task 6) If there are any unsorted records, sort them first.
    • Print Selected Check Records (Sub-task 4)

 

Starting and Ending TRX: Press Enter for ALL.

Starting and Ending Date: Use the first day of the month through the last day of the month being balanced.

Division #: Press Enter for ALL

 

 

Report 7.

  • Cash Requirement (Task 10)

This report may be used when paying bills – it’s a good report to see who is owed money.

Use the last day of the next month; the intended payment date is the day the report is being created.

 

 

Report 8.

  • Future Cash Requirement (Task 12)

Use the last day of the month; Select NO detail; and ALL vendors.

  NOTE: Anything entered after this point must be dated for the new month.

 

A/P END OF MONTH CHECK LIST

Last Month's A/P + ___________________

Voucher Postings + ___________________(from current month Voucher Postings)

Check Registers - ____________________(from current month Check Registers)

Total = ____________________________

A/P to G/L Interface printed & totals verified?_________(from System Mgt Functions-Task 32, Sub-task 3)

Aged Trial Balance printed & total verified? ____________(from Task 9)

Voucher History report printed? (Optional) _________(from Task 19)

Expense Distribution report printed? (Optional)______(from Task 11)

Build Vendor History done?________(from System Mgt. Functions-Task 32, Sub-task4)

Vendor History report printed? (Optional)__________(from Task 18)

Clear Paid Vouchers done? (Optional)_________(from System Mgt. Functions-Task 32, Sub-task 7)

Checking Account (Optional)____________ (from Task 20)

Cash Requirement (Optional)____________ (from Task 10)

Future Cash Req. (Optional)_____________(from Task 12)

Other ___ ___ ___ ___

From the Purchasing Module - #7

Received Items (Not Invoiced) reviewed?______(from Task 22)

Shipped-Back Items (No Credit) reviewed?_____(from Task 23)

Post Closed and Completed PO's dne?___(from PO Entry & Editing-Task 1, Sub-task 5)


                              Choose Interfaces to be posted

 
                            Last       Last        Obtain for
                         generated    posted        posting
         Interface          for         for           now?
   --------------------- ---------   ---------    -----------
1. Payroll.............. 10/31/xx    10/14/xx     P/R (Y/N) N
2. Accounts receivable.. 10/31/xx    10/31/xx     A/R (Y/N) Y  receivables
3. Accounts payable..... 10/31/xx    10/31/xx     A/P (Y/N) Y  payables
 

4. Post the selected interfaces to G/L period:  10       10/01/xx to 10/31
5. Assign a posting date within period 10 of:   10/31/xx
6. Transaction date range: 10/01/xx to 10/31/xx
7. Transaction division range: ALL

Any changes?

 

  • Fields 1 through 3:
    • Answer Y (yes) to generate, print, obtain, and post the interface.
    • Answer N (no) to prevent an interface from being added to the current batch.
      • This allows modules to be posted separately.
    • The cursor will not go to a line that has been disabled in GL task #32; Sub-task 5 – “Setup automatic interface”

 

  • Field 4:
    • Enter the period number where the interfaces should be posted. A pop-up window appears to show date ranges for each period and highlights the current period.

 

  • Field 5:
    • Enter the posting date that should be applied to all the interface entries in the current batch.

 

  • Field 6:
    • Enter the date range for the selected interface transactions.

 

  • Field 7:
    • Enter the division # range (or ALL) for the selected interfaces.

 

 

  • If the Accounts Payable interface is selected an additional question is asked: Include previously interfaced vouchers? Y or N.
    • Answer Yes to get ALL records for the selected transaction date range, even if they have been obtained into the G/L module previously.
    • Answer No to get only vouchers and payments for the selected transaction date range, which have NOT previously been obtained into the G/L module. (i.e. back-dated vouchers for a closed month… records that showed up automatically on an interface because of prior dates)

 

NOTE:          

The “Last generated for” column will be blank until new interfaces are generated for the first time.  Then the date when the last time the GL Interface was generated will appear.

 

The “Last posted for” column will show the posting date used the last time this module’s interface was obtained.

 

 

IMPORTANT NOTE: The posting will be rejected if a selected interface has any unknown G/L account #’s.  The unknown G/L account #’s will need to be corrected in the individual module maintenance history files. Pay attention to any messages on the screen for unknown G/L account #’s so corrections can be made.