Closing Cycle
Opening a Period
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Accounting period setup can be deferred until prior reconciliation. In which a closing period must be created.
1.Navigate Menu: Finance > Accounting Processes > Period Management
2.Click New Closing Period
3.Set period begin and ending date
4.Set Financial Year End if necessary
5.Click Create
6.Continue with Reconciliation, Depreciations, Provisions, Accruals
7.Preparation for Closing Period.
8.Perform post-audit Financial Adjustment.
Annual setup
A typical year end closing period consists of 12 months with the Financial-Year-End set to Yes.
Non 12-months setup
Financial year ending with more or less than 12 months is possible, just set the period ending date accordingly.
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Reconciliation
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The reconciliation process is to match and explain any discrepancies between your ledger and the bank’s statement. Each discrepancy must be resolved within a reasonable timeframe.
Step 1: Creating Reconciliation
1.Navigate Menu: Finance > Accounting Process > Reconciliation
2.Click New Reconciliation
3.Select Account
4.Set Period begin & ending date
5.Enter Statement Balance
6.Create
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Step 2: Matching Transaction
7.
Open Tab: Matching 8.
Check transaction that matches your bank statements Step 3: Matching Prior period
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Check transaction that matches your bank statements 10.Click Update
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Step 4: Explaining Outstanding
11.
Open Tab: Explaining 12.
Provide reasons & provide explanation Step 5: Adding missing transactions
Transactions may take place externally that are not in your ledgers yet.
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Enter each missing transactions for future reconciliation resolution 14.Update
Step 6: Completing Reconciliation
15.Change Status to Complete
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Closing a Period
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Once the closing preparation is completed, you can close the period. This process provides you with a quick view of a list of any pending documents that are still open.
1.Navigate Menu: Finance > Accounting Process > Period Closing
2.Select the current period
3.All documents of the period must be confirm or cancelled
4.When the checklist are good to go, Change status to Close
Audit Package
5.You have the option to export the audit package for audit purposes.
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Post-closing Adjustment
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Post-closing adjustments are necessary when correctional or audit adjustments occurs. These adjustments shall be made into the new period but will be shown in the previously closed period.
1.Navigate Menu: Finance > Journal Entry
2.Click New Journal Entry
3.Set date to first day of the new period, and time to 12:00am
4.Describe adjustment accordingly
5.Expand Advance Options and set Audit Adjustment to Yes
6.Begin entry adjustment item accordingly
7.Create, and then change status to confirm
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