Closing begins before the last day
The monthly close is not a button to extract a trial balance. It is to ensure that period operations are recorded and reviewed, and that variances are known and explained. When purchase invoices or bank reconciliations are late, the report may appear mathematically accurate but does not reflect actual activity. Create a calendar that identifies who is responsible for each review and the target date for completion.
In RedERP operational documents are linked to accounts according to the system setup, but the quality of the result depends on the chart of accounts, cost centers and approval policy. Start designing these foundations before focusing on the format of the report.
Basic matching list
Review customer and supplier balances with open documents, then reconcile cash, banks, and inventory. Do not treat differences with a total entry before knowing their origin; The reason may be a duplicate document, an unbilled receipt, or a collection recorded in an incorrect account.
- Matching safes with cash inventory.
- Bank settlement, transfers and commissions.
- Review debt aging and unallocated payments.
- Check inventory receipts, invoices and returns.
Example: Receipt without invoice
The warehouse received materials on the 29th, while the supplier's invoice arrived on the 3rd of the following month. The system must reflect the two events in accordance with the approved accounting policy, and not postpone the presence of inventory or duplicate the expense. Discuss accrual and cut-off processing with your accountant, then test them with sample documents.
Reports to management, no numbers without explanation
Provide an income statement, budget, and cash flow, explaining the most significant differences from the previous month. Link the deviations to the cost center, branch or project, and specify the action required: late collection, poor margin, stagnant inventory or recurring expense.
Before approving the closure, review the powers, accounting period, and correction procedures. Free RedERP consultation helps your team choose the right standard setup; Implementation of special modifications or additional training is specified in a separate scope.
