monthly & year end reconciliation...
TRANSCRIPT
Detailed Agenda
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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.
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.