Monthly & Year End Reconciliation Procedures

Monthly & Year End Reconciliation Procedures

Detailed Agenda Month End Procedures Accounts Receivable-reconcile ledger and sub-ledger Accounts Payable-reconcile ledger and sub-ledger Asset and Equipment-report and post depreciation Inventory-reconcile valuation and general ledger Reconcile bank account(s) Quarterly Procedures Service Billing-close out work orders Accounts Receivable-move transactions to history Accounts Payable-move transactions to history Year End Procedures Inventory Count Summarize Jobs Archive General Ledger transactions

Accounts Receivable At month end, the accounts receivable ledger and sub-ledger should be balanced with each other. Because aging is based on the invoice date in Jonas, it is critical that the ledger and sub-ledger be in agreement with each other at the end of each period. To check this, we first run an aged receivable report. The current value of the aged receivables report should be in agreement with the value of the general ledger control account.

Accounts Payable At month end, the accounts payable ledger and sub-ledger should be balanced with each other. As with accounts receivable, these values should be in agreement with each other at period end. An aged payables report provides us with the value of our sub-ledger data. This is compared to the current value of the accounts payable control account.

Fixed Assets/Equipment Depreciation In both Fixed Assets and Equipment Management, Jonas runs a depreciation report and provides the opportunity to post the adjusting entry directly to the general ledger accounts. Some smaller organizations may choose to adjust their depreciation on an annual basis. For larger companies with significant investments in fixed assets and equipment, these adjustments should be recorded monthly to ensure that both the balance sheet and income statements are as accurate as possible for each reporting period. In General Ledger> Fixed Assets > Depreciation Schedule, a report of the current month s depreciation can be produced. There is an option to allow the program to post directly to the general ledger.

Fixed Assets/Equipment Depreciation Cont d In Equipment Management, depreciation is reported on in Equipment Management> Reports> Depreciation Reports. As with Assets in general ledger, there is an opportunity to allow Jonas to post directly to the general ledger rather than manually recording the entry.

Inventory The general ledger value of the inventory control account should reconcile to your inventory valuation. A useful report for determining the inventory valuation is the Valuation List by Category report. This report provides detail, by inventory part, on the current value of the on hand inventory. As with accounts receivable and accounts payable, a general ledger inquiry provides the value of the inventory control account.

Inventory Cont d

Bank Reconciliation Reconciling your bank account(s) on a monthly basis is critical to controlling cash flow. With the advent of electronic banking, many organizations now reconcile their bank on a daily basis! There are several time saving features in the Bank Reconciliation program including the opportunity to enter the statement expenses directly into the bank reconciliation rather than doing a separate journal entry.

Service Billing-Close out Work Orders On a quarterly basis, work orders should be moved out of the current data base by closing out work orders. Once moved to history, the work orders can still be accessed and reviewed but the records can no longer be changed. For this reason, we recommend that transactions not be moved to history for at least one quarter after their completion. The utility to move work orders to history will automatically move billed work orders out of the current data base. You will select how you want the program to treat open purchase orders attached to the work orders.

Accounts Receivable-Move Transaction to History Accounts receivable transactions should be moved to history on a schedule that is appropriate to your volume. Smaller organizations will likely move these transactions to history annually or even bi-annually. Larger organizations will move accounts receivable transactions on a quarterly, or even monthly, basis. Regardless of the schedule you implement, it is important to always have the current quarter in the current data base. Before being moved to history, the transaction should have a zero dollar balance, and for Canadian Users, the transaction must have been reported on a GST/HST billing report.

Accounts Payable-Move Transactions to History Like accounts receivable, accounts payables transactions should be moved to history on a schedule that is appropriate to the volume of transactions in your organization. To automatically move invoices to history, they should have an outstanding balance of zero and the associated payment should be reconciled. For Canadian users, the transactions should have been reported on an Input Tax Credit report.

Inventory Count At fiscal year-end, most organizations do a full inventory count to ensure that the value being reported for the inventory control account is accurate. In Jonas, this process begins by having the program take a snap shot of the inventory as it currently exists in the program. Once the physical count is complete, the revised values are entered into Jonas. Any required adjustment to the inventory control account is then entered so that the inventory on hand value and the inventory control account are the same value.

Summarize Jobs In Jonas, jobs can be closed, summarized, or deleted. Closing a job is simply used to restrict postings to the project so that costs are not misdirected. When you summarize jobs, you save all of the costs to a special job that is created to house the data. Each summarized job will have its own unique cost item in the new summary job. Jobs that have no costs on them, or costs in the current fiscal period, can be deleted from the program although this is not usually recommended unless there are no costs.

Archive General Ledger Transactions While it usually takes longer for general ledger transactions to slow down processing, it eventually does happen. You can move several periods to history at once by using the Transfer completed periods to history utility.