The system uses an accounting (transaction) date concept for financial reconciliation. All transactions in the system are captured with the accounting date and this field is generally editable at the time of entry, unless, if the entered accounting date falls in a closed month period.
Closing a month, hence, restricts a user from changing the accounting date on the current transaction(s) and additionally, prevents editing any of the older transactions that fall in the closed period. This action maintains the sanctity of the reconciled reports for the closed months.
The menu is generally only made available to the Administrator user. Any closed month can always be re-opened by going back to the screen and changing the status to an open status.
Month End Close process involves 2 steps:
1. Financial Year Open/ Close.
Expand the Advanced Setup menu to access the Open-Close Period. All past and future months for the financial year are listed on this screen. To close a month, change the previous month(s) to Closed status. There are additional statuses you can utilize and the description for each status is provided below.
a. Pending – You can restrict specific transaction activities for the closed month by putting it to Pending status. Check the box against the transactions that should not be allowed for the month.
b. Open – All transactions are allowed for the month.
c. Closed – No transactions are allowed with the month’s accounting date if the month Closed.
d. Future – Any future months show with the status – Future. All transactions are allowed with this status.
2. Running the Reconciliation Report.
Click on the Reconciliation Report link and run the report for the closed month. The Reconciliation Report pulls to a spreadsheet and has every transaction – charges, payments, schedules etc. made for the accounting date range in separate worksheets.