Month End Procedures

Xebra Accounting Concepts: XETEX Xebra is designed to capture accounting information quietly in the background as work is being done on the system.   As orders are processed and invoiced, operators do not need to concern themselves with general ledger account numbers.  Sometime after the end of an accounting period, the individual doing the bookkeeping for the company will need to look at a summary of the captured information.  Once the bookkeeper verifies that the information is correct, the summary can be given to an outside accountant or imported into the Xebra General Ledger Module.

XETEX Xebra does not require a month-end close prior to starting work for the new month.  In fact, it is best to wait at least a few days into the new month before closing the old one.  Most people wait until they get their statements from the bank for the accounting period before they close.

Closing a month consists of setting the Last Month Closed date on the Accounting Node.  Doing so locks all activity that would alter the accounting information prior to the end of the last month closed.

While the Xebra does not require a month-end close, sound business practices dictate that you should periodically review your financial information.  For your convenience, we are providing two checklists for month-end procedures.  Everyone should carry out the first one, whether or not they are using the Xebra General Ledger.  The second one is for companies using the Xebra General Ledger.

When your bank statement arrives, post any bank fees or automatic payments to your checkbook by processing a withdrawal.  Be sure to create the appropriate accounts payable records.

Balance your checkbook using the reconcile action in the checkbook program.

If you are using more than one checking account, repeat the above steps for each one.

Set the Last Month Closed date on the accounting node screen to the end of the month being closed.  This will prevent anyone else on the system from making changes that will alter the accounting information. Note: During review, if adjusting entries need to be made, the Last Month Closed date will need to be set to an earlier  month in order to allow changes.

Use the General Journal to make any necessary adjusting entries.  See Note above.

If you are tracking inventory values in your general ledger, use the Generate Inventory Entries action in the General Journal to create the necessary transactions.

Run the Summary Journals for the month being closed.  The Summary Journals are found in the Reports Menu on the Accounting Node.

Check the Net Cash Change shown on the Summary Journal and confirm that the balance is zero.

If the balance is not zero, you must review your accounting.  If you reconciled your checkbook, the most likely error is an entry or correction made to the checkbook that was not reflected in the accounts payable disbursement.  Frequently, the amount of the discrepancy will direct you to the problem entry.  If your difference divides evenly by 9 look for a transposition error.

If you need to adjust accounts payable records or job information, you must temporarily change the date on the accounting node screen back to the end of the prior month.  Change the date back when you have finished making your changes.

You may run the summary journals as many times as necessary.  You must rerun the summary journals after you have made changes to any data in the system that affects the accounting for the month.

Print a copy of the balanced Summary Journals for the month.

Print an Accounts Payable Aging effective dated to the last day of the month you are closing.

Print an Accounts Receivable Aging effective dated to the last day of the month you are closing.

If you are using an outside accountant to prepare your financial statements, give the accountant a copy of the three reports that you just printed.

The General Ledger module allows you to import the posting summary from your Summary Journal Report.

If you are using the General Ledger for the first time, you should pay particular attention to the difference between the calendar month and the fiscal accounting period.  Up to this point, everything in the system depends on the calendar month.  If your fiscal year is the same as the calendar year, it is the same.  If your fiscal year is different from the calendar year, the system administrator must use the setup program in Setup > Options > Fiscal Year to establish your fiscal year.

Go into the General Ledger in the Accounting Node and use the Commands Menu to load the period that you are working on, or select that period from the list.  Remember that this is the fiscal accounting period, not necessarily the calendar month.

Review the information at the top of the screen to verify the fiscal period and the corresponding calendar month.

Select Actions > Import from Sales.  The program will recalculate the summary journals based on current information and compare it with the last set of summary journals run.  If you have not run the summary journals since your last change, the program will not allow you to import.

If additional adjusting entries are needed, or errors are found that need to be corrected, the corrections or additions may be made.  A new set of Summary Journals should be run.  Once this is done, the period may be deleted and re-imported.

Run your preliminary reports and check them for accuracy.

When the accuracy of the reports has been verified, reload the period and lock it.

Run your final reports.