What should I consider at month end?

Summary

The following steps are accounting procedures that need to be taken into consideration before embarking a month end procedure (e.g. Bank Reconciliation & Stock Journals etc.).

There are three stages to performing the month end.

Stage One

Sales Ledger

• All sales invoices and credits have been posted into the system for the accountancy period you are about to close.

The sales ledger almost takes care of itself because the sales invoices, credits and most payments are all posted from the other modules of the system, Stock Control, Workshop, Vehicle Sales and Order Processing.

• All receipts into the business, including monies received through point of sale (tills) have been posted onto the system and split into the appropriate control account.: -

• Z900 cash
• Z901 cheques
• Z902 credit/debit cards

• The end of day daily takings agrees to the above control accounts and any corrections have been made to balance them.

See How to deal with end of day till corrections

Purchase Ledger

• All purchase invoices, credits and payments have been posted onto the system for the accountancy period you are about to close.

For the New vehicle invoices, please ensure you have consulted the the "Vehicle Integration to the nominal ledger" specifically the section "Operations New Vehicles, When The Vehicle Is delivered" because you must reconcile the vehicle sale stock record back to each invoice and perform other crucial checks that will prevent huge amounts of time if they don't balance once they are in the nominal ledger.

Nominal Ledger

• Post any journals required for the accountancy period you are closing off i.e. Wages, Expenses, Pre-payments, Accruals etc.
• Perform the Bank Reconciliation and reconcile Z992
• Using the Bank Reconciliation Programme reconcile Z900,Z901,Z902.

Stage one close off

At this point you are now ready to complete the sales ledger and purchase ledger month end procedure. Do not close the nominal ledger or perform the monthly audit and cash book print outs.

See also

• Month end Vehicle Integration to Nominal Ledger.
• Stock Integration to the Nominal Ledger.
• How to process a month end.

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Keywords AND Misspellings

Month, end, journals, accounting, vat, audits, daybook, bank