In P2P cycle, Close Payables before closing Procurement to ensure that purchasing accruals are accounted for at period-end, especially for accruing expenses on un-invoiced receipts.
Before closing the period, execute the following steps:
- Process All AP Interfaces: Run the custom interface program to process all accounts payable-related interfaces.
- Resolve Unprocessed Transactions in AP Invoice Interface: Check for any unprocessed transactions in the AP Invoice Interface. If any are found, run the Payables Open Interface Import Program to import them.
- Import Expenses Report: Execute the Expenses Report Export Program to import approved and audited expenses into the AP module.
- Validate and Account for Open AP Invoices: Ensure that all open AP invoices for the period are validated, accounted for, and transferred to the General Ledger (GL). Confirm that the Invoice Validation and Create Accounting programs have completed successfully.
- Confirm or Cancel Payment Process Requests (PPRs): Ensure that all PPRs are either confirmed or canceled.
- Interface Asset Transactions to the FA Module: Ensure that all asset transactions that need to be capitalized are interfaced to the Fixed Assets (FA) module via the Mass Addition process.
- Transfer Project Costing Data: Once all payables transactions are closed for the period, run the PRC Interface Supplier Cost program to transfer project costing data to the Project module.
- Check for Exceptions: Run the Subledger Exception Report to confirm there are no exceptions for the period.
Once the above steps are completed, you can close the current period and open the next.
Note: The sweep functionality can be used to transfer any exception transactions to the next period.
Internal Reconciliation (Within the Payables Module)
To ensure reconciliation within the Payables module:
- Previous Month's Accounts Payables Trial Balance Report
- Current Month's Payables Posted Invoice Register
- Current Month's Payables Posted Payment Register
Calculation:
Previous Month’s Accounts Payables Trial Balance Report
- Current Month’s Payables Posted Invoice Register
- Current Month’s Payables Posted Payment Register
= Current Month’s Accounts Payables Trial Balance Report
The final balance should match the Current Month’s Accounts Payables Trial Balance Report, confirming that the reconciliation is accurate.
External Reconciliation (AP to GL Reconciliation)
- Run the Accounts Payables Trial Balance Report and ensure that the balance matches the GL Account Inquiry for the AP liability account.
Common Reasons for Differences in AP to GL Reconciliation:
- Unposted Payables Journals in the GL Module: Unposted journals in the GL module can cause discrepancies.
- Manual Journal Vouchers (JVs) with AP Liability Account in GL: Manual JVs passed with the AP liability account may lead to differences.
- Incorrect Posting to the AP Liability Account in Subledger Modules: User errors in subledger modules can affect the AP liability account.
- Incorrect Updates to Payable Source GL JV Line Amounts Before Posting: Line amounts in Payables source GL journals may be updated incorrectly before posting.
- Deletion of Payable Source GL Journals in the GL Module Before Posting: Deleting Payable source GL journals in the GL module before posting can create discrepancies.
These issues must be reviewed and corrected to ensure that the AP balance reconciles correctly with the GL.
