The following steps represent the normal month end procedures.  Your steps may vary based on other internal procedures.

What do I do in Accounts Receivable?

1. Make sure all transactions from the billing period are posted.

a. Invoices – Run this report: Print Outstanding Unposted Invoices (6.3.4).  You may run this by location or for all locations.  Press <Enter> at Bill To Customer and at Start Invoice Date.  Select the last day of your billing cycle for End Invoice Date.  This will give you a list of any invoices that were not posted for whatever reason up to the ending invoice date.  Review the list and post or void them, as necessary.

b. Payments – Run this report:  Print Payment Proof Report (6.4.2).  Press <Enter> for all batches.  Review the resulting report to determine if payments need to be posted, deleted, or left alone (if the payments are good, but you do not want them on this month’s statement).  Keep in mind, any unposted payments should NOT be applied to any debit transactions, or you will have inaccurate statements.  The statement print program will not run (PM Version 7.0 and above*), if there are any applied unposted payments on file.

c. Adjustments – Run Print Adjustment Proof Report (6.5.2).  Press <Enter> for all batches.  Review the resulting report to determine if adjustments need to be posted, deleted, or left alone (if the adjustments are good, but you do not want them on this month’s statement).  Keep in mind, any unposted adjustments should NOT be applied to any transactions, or you will have inaccurate statements.  The statement print program will not run (PM Version 7.0 and above*), if there are any applied unposted adjustments on file.

d. Recurring Sales – If you do not have any Recurring Sales then SKIP THIS.  If you use our Recurring Sales module, run Print Active Recurring Sales Proof Report (6.6.5).  Press <Enter> for all batches.  Review the resulting report to determine if recurring sales need to be posted, deleted or left alone.  These are normally activated once a month, and should be posted.

2. Calculate, proof, and post service charges.  SKIP THIS step if you do not use Service Charges.

1. Normally, you will accept the default dates that appear in the 2 date prompts.

1. Date Entered – This is the TRANSACTION date that will appear on the statement.  It has nothing to do with how the service charges are calculated, only how they will appear on the statement.

2. Reference (Aging) Date – This is the critical date for calculation.  Service charges will be calculated on all transactions that are 30 or more days older than this date (program will allow for months that have 28, 29, or 31 days, and age properly according to the length of each month).  The only exceptions will be invoices that are marked as being in dispute. 

See Enter P.O. into Posted Invoice/Show Applied Items (6.3.5), where you can enter a disputed date on an individual invoice).  If you want to give customers a longer grace period, you can change the date that is displayed.  See below:

Example: Your company service charges transactions that are 45 days or older.  The aging date is displayed as 4/30/1998.  You would need to change the aging date to 4/15/1998.  The program will then calculate service charges on transactions older than 3/16/1998.

2. Print Service Charge Proof Report (6.7.3).  Review the report and make any necessary corrections or deletions in Service Charge Entry and Review (6.7.2).  Re-run the proof report until you are satisfied with the list of charges that will post to the customers’ accounts.
3. Post Service Charges to Accounting (6.7.4).  This will place the transactions on the customers’ statements.

3. Make sure all open items have been applied (Optional).  You can get a list of customers with unapplied payments or credits in the Aging Report menu (6.10.1), option 9.  Use Cash Apply of Posted AR (6.9, or 6.8 on older versions) to do any necessary applications.  Some of our customers prefer to leave current month Point of Sale Credits and Adjustments unapplied until after statements are generated, for the sake of how they appear on the statements.

4. Print Weekly Statements (6.11.1), if applicable, also optional.  There is an option when printing the monthly statements to include weekly customers, if desired.

5. Print Detailed Aging Report for All customers (6.10.1, option 2).  NOTE: This report cannot be recreated at a later date.  We HIGHLY recommend running this at month end.  Normally you will accept the default aging date that is displayed (recommended), as this is the same date you will use as your statement date.  You want this report to match the aging on the statements.  Press <Enter> through all prompts, and select <D>etail option.  You will be prompted with “Do you want to Suppress printing Multiple Applied Data Items”.  In other words, if a payment was applied to 10 items, do you want to only see one line on the report that indicates it was applied to 10 items?  If you answer <N>o to this prompt, you will see all 10 items in the Applied Information next to the payment transaction.  Answering <Y>es to this prompt will reduce the length of the report somewhat, with the loss of some application information.  Choose according to your own needs. 

6. Print Monthly Statements (6.11.2).  You should accept the default Statement date, as transactions are aged off of this date.  You can run statements by location or for all at one time.  Choose other options as desired.

7. Balance Forward Roll (6.11.4).  NOTE:  If you have any customers that are set to Balance Forward in Customer Entry (6.1.1, field 36), you MUST run the Balance Forward Roll immediately following the successful printing of your statements.  This must be done prior to posting any new transactions.  If you do not have any Balance Forward Customers, skip this step.

8. End of Period Accounts Receivable Roll (6.11.5).  This is normally done at the beginning of the new calendar month prior to posting any transactions for the new month.  If you run statements on the 25th, wait until you are done posting all transactions from the current calendar month, then run the End of Period Accounts Receivable Roll.  Be sure you type <C> to continue, or else it will not roll.  NOTE: If you are set to age by accounting period, rather than by date, then you must roll after printing statements, and prior to posting any transactions.  You can check to see how you are aging by looking at Statement Terms and Comments (6.11.6, field 6).  The normal setting is <D> for Date aging.

9. Print any necessary Sales Tax Reports (6.10.7).  These reports can be generated at any time, so there is no need to run them immediately at the end of the month.

10.All other reports such as Sales Analysis reports, Commission reports, Order-related reports, VOC Reports, etc. can be generated at any time, so there is no need to run them immediately at the end of the month.

What do I need to do in Accounts Payable?

There is no “roll” program for A/P.  At the beginning of the month, manually change the default accounting period to the new period in AP Setup (10.2.1).  This is the default period for Voucher Entry (7.1.1), and the period used for vouchers created from posting Receiving in Receiving Merchandise (4.1.1), if you have Receiving integrated with A/P.  If desired, you can also print a Payables Aging Report (7.3.3) after all prior month vouchers are posted.  We highly recommend printing this report, as it cannot be recreated at a later date.  This would give you a month ending report of unpaid payables.

       What do I need to do in Inventory?

We recommend running an Inventory Value Report (5.2.4) at month end, prior to any activity for the new month.  This report cannot be recreated at a later time, as it is a snapshot of your current QOH.  If you do not have QOH entered into your inventory, you may skip this step.

       What do I need to do in my General Ledger?

There is no “roll” program for G/L.  At the beginning of the month, manually change the default accounting period in General Ledger Setup (10.2.3, field 1).  This field only affects the default accounting period for MANUAL journal entries entered through Journal Entries (8.1.1).  In this program you can also “close” the accounting period on page 2 – field 9 (PM Version 7.0 and higher*).  Marking the period as closed prevents accidental and/or intentional postings to that period.  You may want to wait until the end of the year to close periods for the entire year.  It is not required that you close any accounting periods, only if you desire.  If you are not using the General Ledger, you may skip this step.

You may print any desired financial reports at any time, provided all journals are posted for the period and/or year requested.

* You can check which version of Perfection Management you are currently using by typing a <V> at any menu.  The version information will be displayed in the bottom highlight bar of the menu.