Financial Month Closing Poll

Kinetic ERP
1

Looking for some unscientific research…

How long after the end of the month do you close?

  • 1 day
  • 2 - 3 days
  • 3 - 5 days
  • 1 week
  • 1 month
  • Close a month? Who does that?

0 voters

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2

We’re apparently under the false impression that we need to close on the last day of the month… lock everyone out for financial transactions at 3pm. It looks like there is a better way?

3

Our Finance team has up to 10 business days to close each month. Starting on the first of the next month, different teams have different requirements and timelines:

  • Sales has two business days to verify all shipments from the previous month and to issue invoices for those shipments
  • Production has up to a week to verify production quantities and to complete jobs. We pay piece rates so production entries have to be corrected each payroll cycle before WIP is run. We’re currently working to have these checks done daily so we don’t need to wait for a payroll cycle to close.
  • Purchasing has 3 days to verify all PO receipts have been entered and received at the correct prices.
  • AP then has 5 days after Purchasing is done to make sure all invoices for the previous month were entered and posted. We just went live with ECM AP Automation so this is usually done the next day after Purchasing finishes their process.
  • Finance puts together their recurring journals and pulls the bank statement to make sure any transactions for the closing month are entered. This usually isn’t a bottleneck and is done by the time operations is done.

During this process, Finance will use the Earliest Apply Date setting to slowly restrict different areas to posting to only the current month. Once each department is finished with their month end processes, they are only allowed to post to the current month.

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