Core Financial Modules

[cmunyan]

At one of my companies, client has been using MAS90 4.4, now 4.5 for months, but period end closing for AR/AP and GL always seems like mass confusion for the staff, all of whom are clerical people, know the company but have no real accounting background other than some CC courses at best.  Can someone pls suggerst how I might procedurize the close so that it is crystal clear and in laymen's terms?  I can't seem to make myself understood when talking in Sage documenation terms.

advthanksance

[Ziliak]

Maybe have them think about Period End as a daily activity.  If you help them get the subsidiary ledgers (do we still call them that?) in balance once, then show them how to compare the AR / AP Trial Balances to the GL accounts each day with a checklist for how to troubleshoot things when they are off.   They might find it only takes minutes per day keeping in balance which should make actual Period End smoother.

[rmikolainis]

Make sure all your invoices are updated, daily transaction registers are updated.

Then you go into the Period End Folder,  print any reports for period end you need, run period end. Just make sure to do GL LAST!

Whats the confusion?

[BigLouie]

Please note that most companies keep the GL open for at least a year so they can go back and make correcting entries that always seem to come up.

[clearis]

Period End Processing Comments

1. I prefer not to keep the GL open for extended periods of time. Posting mistakes can happen if a date is entered as 11/30/10 rather than 11/30/11. GL is the only module that can be reopened, so go ahead and close. Just reopen and enter adjustments as need to be posted to prior periods, then reclose.

2. Closing modules has much less to do with software than it does with workflow and process. How are end of period transactions identified and recorded? What is the cut-off date and procedures to identify and record transactions in the proper period? What provisions are made to record accruals? What are the procedures and processes to reconcile account balances?

I worked 9 years for a large public accounting firm in audit. The cut-off at period end was always something that got examined. The process within the ERP systems they were running was always at the end of a  list of procedures to perform prior to closing.

[DFeller]

I have a client that reconciles their key numbers daily (inventory, receivables, payables) and if there is an issue, it's easier to identify because you only need to look back 1 day.  Their month end is a piece of cake then.

Dawn

[TomTarget · Accepted solution]

---

cmunyan wrote:

At one of my companies, client has been using MAS90 4.4, now 4.5 for months, but period end closing for AR/AP and GL always seems like mass confusion for the staff, all of whom are clerical people, know the company but have no real accounting background other than some CC courses at best.  Can someone pls suggerst how I might procedurize the close so that it is crystal clear and in laymen's terms?  I can't seem to make myself understood when talking in Sage documenation terms.

---

It's so easy to assume that everyone knows what we take for granted.

Imagine trying to teach a caveman how to use a computer.   Since they don't have the first concept of what a computer is or what it might be used for (or even the printed word/mathematics),  you could try to teach them to specifics of Outlook/Word/Excel all day and make no headway.

A lot of people simply don't understand that the detailed balances of receivables/payables/inventory should agree to a general ledger control account (or even what that is).  Even less understand the concept of a debit/credit. 

You really just have to talk with the staff and figure out what the important accounting concepts are that they don't understand and put the concepts in terms they can relate to.     If they don't understand the accounting concepts first,  you can talk about MAS specific procedures till you are blue in the face and it won't do you any good.   Once they have the accounting concepts down and you identify the specific areas they don't comprehend then you at least have a chance.

They don't have to be able to pass the CPA exam,  they just need the general concepts and why they are important.

.