Month-end Close in a Non-profit Organization

Cindy Cline
Cline Consulting and Training Solutions, LLC

Agenda
Introductions How the Applications Work Together Month-end Close Processes Planning Your Month-end Close Q&A

Applications Interface
Purchasing Accrual Purchasing Matching Expenditures/ Adjustments Cash Mgmt Deposits/ Clearing Journal Entries Labor Distribution Costing Journal Entries Asset Invoices Payroll Timecards Assets OTL CIP Employer Costs Grants Invoices Receivables Journal Entries Commitments Journal Entries

Payables

Payments/ Clearing

General Ledger

Journal Entries

PTAEO vs. COA

PTAEO
Project Task Award Expenditure Type Expenditure Organization

COA
Fund/Award Project/Task Natural Account Responsibility Center Location

Payables/Purchasing
Commitments

Payables to General Ledger

Purchasing Matching Expenditures/ Adjustments Journal Entries Payables Grants

DR CR

Invoice Distribution AP Liability

Grants to General Ledger

Journal Entries General Ledger

DR CR DR CR

Burden Expense Burden Clearing Misc Trx Expense Misc Trx Clearing

Purchasing Accrual

Labor Costs

Labor Distribution to General Ledger

Dr Cr Payroll Clearing Payroll Liability

Grants to General Ledger

Dr Cr Cr Payroll Expenses Payroll Liability Payroll Clearing

Identify Suspense in LD
select distinct d.employee_number, a.PERSON_ID, d.FULL_NAME, b.SUSPENSE_REASON_CODE psp_payroll_lines a, psp_payroll_sub_lines c, psp_distribution_lines b, per_all_people_f d a.PERSON_ID=d.person_id c.PAYROLL_SUB_LINE_ID =b.PAYROLL_SUB_LINE_ID c.PAYROLL_LINE_ID=a.PAYROLL_LINE_ID

from

where and and

Grants
Grants to General Ledger
Dr Cr Expense Clearing Account
Purchasing Matching Expenditures/ Adjustments Invoices Receivables Journal Entries Commitments

Payables

Labor Distribution

Employer Costs

Grants

General Ledger

Journal Entries

Revenue/Receivables
Grants Invoices Receivables Journal Entries General Ledger

Revenue Interfaced First

Dr Cr Unbilled Receivable Revenue

Invoice Interfaced First

Dr Cr Receivable Unearned Revenue

Dr Cr

Receivable Unbilled Receivable

Dr Cr

Unearned Revenue Revenue

Assets

Asset Additions
Dr Cr Dr Cr Cost Clearing AP Liability Cost Cost Clearing

Month-end Close
Processes/Tasks

Month-end Close
2 days to 2 weeks or longer Applications Close
Pre-posting activities Posting activities Verification activities/reconciliations

Cash Management
Complete Bank Reconciliations
Clear Check Clear Receipts
Payables to General Ledger Record payment
Dr Cr AP Liability Cash Clearing

Reconciled Payment Dr Cr Cash Clearing Cash

Payables
Pre-posting Activities
Enter all invoices and payments Invoice approval workflow Release Invoices on hold Invoice validation and payables accounting Transfer to GL Create mass additions

Posting Activities

Payables
Verification Activities
AP Trial Balance Posted Invoice Register Posted Receipts Register Period Close Exceptions
Outstanding Payment Batches Entries not Transferred to GL Unaccounted Invoices or Payments

Payables
Beginning Trial Balance + Posted Invoices - Posted Payments Ending Trial Balance

Purchasing
Pre-posting Activities
Enter all invoices and receipts Apply receipts Verify Payables Closed Reports
Accrual Reconciliation Uninvoiced Receipts

Purchasing
Posting Activities
Receipt Accrual Period End

Verification Activities
Encumbrance Detail Report

Grants
Pre-posting activities
Interface supplier invoices from payables Verify that payables is closed Costing and funds checking Create burden transactions Generate and release invoices Generate and release revenue

Grants
Posting activities
Interface invoices to Receivables Interface revenue to GL Interface costs to GL

Verification Activities
Tieback processes EXC: Transaction Exception Detail

Receivables
Pre-posting activities
Enter all receipts, invoices and NSF checks Autoinvoice Run Incomplete invoices report and update incomplete invoices Run Adjustment approval report

Posting Activities
Interface/General Ledger

Receivables
Verification Activities
Transaction Register + Credit Memos = Sales Journal (debits + credits) Current aging = Prior aging + Transaction register Adjustment register Invoice Exceptions report - Payments

Receivables
Verification Activities
Receipt Journal Report Receipt Register Applied Receipts Register Unapplied Receipts Register

Assets
Pre-posting activities
Post all asset additions Enter maintenance transactions Run depreciation Run create journals

Posting activities
Post entries in GL

Assets
Verification activities
Cost Summary Reserve Summary Journal Entry Reserve Ledger CIP Cost Summary

General Ledger
Pre-posting Activities
Import journal entries from subledgers Enter manual journal entries Reverse prior month accruals Generate recurring journals Generate mass allocations Check for unposted journals

General Ledger
Posting Activities Verification Activities
Journal Reports Account Analysis Reports Trial Balance Reports Financial Statements Account Reconciliations

Planning Month-end Close

Calendar
April 2007
Sunday Monday Tuesday Wednesday Thursday Friday Saturday

1 Open April 2007 in all subledgers and GL. 8

2 Begin Bank Reconciliations

6 End of pay period 7 2007

10

11

12

13 Cost pay period 7 2007 and run LD Close AP and PO for March 2007

14

15

16 Close Grants for March 2007

17 Close AR for March 2007

18 Close FA for March 2007

19

20 End of pay period 8 2007 Close GL for March 2007

21

22

23

24

25

26

27 Cost pay period 8 2007 and run LD

28

29

30

Questions

Month-end Close in a Non-profit Organization

Cindy Cline
Cline Consulting and Training Solutions, LLC cindy@ccatsolutions.com