Month End Reconciliations - Operational Modules

When you are confident that a final day end for the month has been run to cost all Order Entry, Purchase Order and Inventory Control transactions, and that all batches have been posted in Accounts Receivable, Accounts Payable and the General Ledger, the following balances should be confirmed.

Inventory Control

Print an Item Valuation per IC Account Set and verify that the total balance equals the corresponding GL Inventory Control account.

• Use the option for Transaction Costs by Fiscal Year/Period, starting from the first active year/period to the current month end.
• Include “non-zero” quantities and costs.
• In summary displays a simple cost only report for reconciliation purposes.

Clearing Accounts

At month end, we suggest you also check the balance of the shipment and payables clearing accounts. Shipment Clearing GL Account As Shipments are posted in OE, the shipment clearing account is debited with the cost of the inventory. When the corresponding OE Invoice is posted via Accounts Receivable to the GL, the entry is cleared from this account. Therefore, any balances showing in this account at month end indicate a possible shipment of goods that have not been correspondingly invoiced. Use the Invoice Action report in OE Reports to identify which shipments are affected.

Payables Clearing GL Account

As inventory Receipts are posted in PO, the payables clearing account is credited with the equivalent value of inventory. When the corresponding PO Invoice is posted via Accounts Payable to the GL, this entry is cleared from the payables clearing account. Therefore, any balances showing in this account at month end indicate the receipt of goods, for which an AP invoice has not been processed. Use the Payables Clearing Audit List in PO Transaction Reports to identify which receipts are affected.

See also: Month End Reconciliations – Financial Modules