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MONTHLY PROCEDURES AND TIE OUT
With regards to monthly procedures and tie out of reports, once the vouchers and payments have been entered for the month , there are several reports to be printed and matched accordingly.
1. Purchases Journal
This report lists all transactions from the Current Transaction (APTRAN) and the History Transaction (APTRANH) files for a certain range including: invoices, checks, and adjustments. There is also a recap at the end of the report that categorizes the transactions and then totals each category. This report should be run daily if there is a great deal activity on a day by day basis. Print this report from the start of the month to the end of the month. This report should be run in detail and both invoices and cash disbursements should be shown on the report.
2. Check Register
This report lists all current and historical checks written by the system, handwritten checks, and voided checks. This report should be printed by check date, and then the dates should be the beginning of the month to the end of the month. Run a separate report for each cash account and run all reports in detail.
3. Distribution to G/L
This report itemizes all debit and credit transactions resulting from purchases and payments to be posted to the General Ledger. There is also a recap at the end of this report. When printing the Distribution to G/L Report select sequence by account number. use the last day of the month as you "as of" date. Answer "NO" to interface until you have tied out your month and verified all transactions on this report. If you do detect errors, fix them and then rerun this report. When it is right answer "YES" to the interface to G/L. Remember that this will purge all reported transactions from the APDIST file. It is wise to make a backup before running this report in final.
4. Aged Payables
This report ages invoice and payment transactions in the Current Transaction (APTRAN) file according to a certain aging date. If this report is printed before the month end close, and paid invoices are included, all invoices as well as all payments entered for period will appear. If this report is printed after the month end close, only open transactions will appear.
5. Other Reports
Cash Requirements - This report forecasts the amount of cash needed to meet maturing obligations, based upon unpaid invoices and vendor's terms of payment. This report can be printed in detail or summary.
Pre-Cash Selection - This report examines vouchers that qualify for payment within a specified cash account and date cutoffs. Also this report will show the vouchers you have selected to pay in Select Cash Disbursements.
Purchases History - This report lists the dollar amount of each purchase transaction that occurred within a certain period. This report can be printed in detail or summary.
1099 Misc. Forms - This will print 1099's for each eligible vendor.
Product Purchases - This shows you what you have purchased from each vendor. If you run this report in detail, individual line items will be printed. If this report is run in summary then totals for each product purchased will be included on report. Line Item History (APLINH) must be retained in order for this report to run.
MONTH END PROCEDURES
1. Run Aging as of the end of the month, indicate "No" to future transactions.
2. Run Distribution to G/L Report as of the month end, indicate "No" to the G/L Interface, verify transactions.
3. Run a Check Register for the month, verify entries.
4. Run detail of Accounts Payable control account in General Ledger. Tie out Accounts Payable Aging, make the necessarycorrections.
5. When completed with necessary Accounts Payable month end procedures and all reports are in balance, back up the Accounts Payable system (see the following worksheet for tie out).
6. Generate the Distribution to G/L report as of the month end and indicate "Yes" to generate the G/L.
7. Run the Month End Close procedure as of the end of the month.
8. Print and keep the following reports:
(A) Aging as of month end
(B) Check register for month
(C) Purchase Journal for month
(D) G/L Distribution Report generated in step 6.
PERIOD END RECONCILIATION
1.) Last Month Ending Aging = $_____________
This Month Ending Aging = $_____________
Change = $_____________A*
2.) Purchases Journal Invoices = $_____________
Purchases Journal Payments = $_____________
Change = $_____________B*
3) Total Change to AP = $_____________(Debits)
on GL Distribution Report = $_____________(Credits)
$_____________C*
*A, B, and C should be equal to each other.
If you are out of balance:
1. Make sure you subtract any realized and unrealized exchange gains and losses from the Total Change to AP debit and credit amounts before verifying totals.
2. Check the date ranges of the current period's Aged Payables report and the Purchases Journal. Be sure they correspond to the As Of Date specified for the Distribution to GL report.
3. Make sure you did not include future transactions in the Aged Payable Report.
4. Check to see if the Distribution to GL report includes invoice, debit memo, or payment distributions that were entered and posted to previous periods since the last month-end closing.
5. Correct mistakes properly through the use of debit memos or new vouchers.
HOW TO TIE TOGETHER THE MONTHLY REPORTS:
Using the following reports:
(A) Purchases Journal
(B) Distribution to G/L
(C) Check Register
COMPARE
Purchases Journal: Distribution to G/L:
· Accrual Method
Total Payments/Discounts = Cash + Discount Taken
Total Invoice/Adjustment = Total Expenses
· Cash Method:
Total Payments/Discounts = Cash + Discount Taken + Total Expenses
COMPARE
· Check Register: Distribution to G/L: Purchases Journal:
Total Check Amount = Total Cash = Total Check Amount
If you are out of balance:
1. Check the date ranges of the Check Register and Purchases Journal, be sure dates correspond to the As Of Date specified for the Distribution to GL report.
2. Make sure you do not have 0000-0000 account numbers or 00000 class on your Distribution to G/L Report.
3. Check to see if the Distribution to GL report includes invoice, debit memo, or payment distributions that were entered and posted to previous periods since the last month-end closing.
4. Correct mistakes properly through the use of debit memos or new vouchers.
**Once these three reports tie out, make a back up of Accounts Payable and close the month.
