The End of Month Close is a user-initiated process that prevents further posting to an accounting period. For Accounts Receivable, most users choose to make the close final and disallow any further transactions into the period. For Accounts Payable some users allow vendor invoice posting into a closed period to ensure that the monthly close is performed on time.
Preliminary setup required
- To check your settings navigate to File > Company > Master: Accounting, Allow Period Change in Accounts Payable. The flag should be set to Y to become active. If the flag is blank there are no period changes allowed.
Note that the ability to change period in accounts payable applies only to invoice entries and not to check print. The Accounting > Accounts Payable > Check Print screen will be restricted to the current period.
The Accounting > Accounts Payable > Invoice Entry screen will be open to any calendar period in the currently open fiscal year.
Example of an expense entered to a closed period
This invoice has been assigned to calendar period 0318 while the system is open in 0418.
Reconciling considerations
Consideration for items entered to a closed period must be given when reconciling the Accounts Payable Aging Report (static) with the General Ledger (dynamic). The EOM Close process includes an Excel detail listing of open A/P at the time of the close. If items are added to the period, but not on the report, there will be an initial reconciliation difference. See Account payable reconciliation
Other considerations
Entering a payable to a closed period is permissible if the G/L year corresponding to that year is open. Users approaching the end of the fiscal year should keep the G/L open after the final end of month close has been done to allow additional invoices to be entered.
Caution: Exercise caution when determining whether to assign a merchandise invoice to a closed period. Users with the one-step EOM close, which includes an un-invoiced PO accrual, should avoid entering any merchandise invoice to a prior period.