RIMAS for UNIX Software Installation

To: All Users of SLG Accounts Payable System

From: The SHARED LOGIC Group, Inc.

Re: Period-End Processing and Closing

Date: February 16, 2004

The following is a discussion of the programs that should be run and procedures that should be followed at the end of the period, related to reporting and closing Accounts Payable. As you review these steps, you will find that not all steps are required (though some optional steps are recommended). You should revise this outline to satisfy your company's requirements.

This discussion begins at the point that all of the normal, daily functions have been completed for the last day of the period about to be reported and closed. It should be noted, however, that these steps do not have to be performed before you begin processing activity for the subsequent period, whether invoice entry or check writing. The only requirement is that all activity for the current period be completed before you proceed with this procedure.

Ensure that the last instant checks and/or new items batch(s) have been printed and cleared. This includes the Daily Items Journal and the Manual Check Register.

Ensure that the last instant, manual and batch checks have been updated to the Paid Item History.

The period-end reporting process includes running the following programs:

Print Period-End Trial Balance.

Print Period-End Item Journal

Create & Sort for Period-End Check Register, then Print Period-End Check Register

Create & Sort Item Distributions, then Print Period-End Distribution Report

At this point, you should "reconcile" the activity for the A/P accounting period:

Confirm that the Period-End Distribution Report nets to zero (0).

Confirm that the credit to A/P on the Period-End Distribution Report equals the total from the Period-End Item Journal, less the total from the Period-End Check Register. This net may be either a credit or a debit.

Confirm that the total from the Period-End Trial Balance from last period-end, plus the total from the Period-End Item Journal, minus the total from the Period-End Check Register, equals the total from the Period-End Trial Balance from this period-end.

If any of these cannot be confirmed, you must determine the cause of the error and then re-perform these steps.

Now, there are several reporting options available to you. These must be printed at this point, before the data for the period is closed, if you want the reports that are produced:

If required, run Create & Sort Tax Distributions, the Print Tax Distribution Report.

You are now ready to merge A/P to G/L. Proceed as follows:

In the G/L menu, run Interface A/P to G/L Detail (for either Scrap or Steel).

In the G/L menu, run Print Detail Journal to confirm that the batch is acceptable.

Optionally, in the G/L menu, you can run Update Detail Journal to Accounts at this time. Of course, this can be run later also.

Back in the A/P menu, perform the following steps to actually close the period for A/P:

Print Maintenance Audit List

Create Maintenance Audit List

Update All Files at End-of-Period

You may also, optionally, Print Vendor Analysis and/or Print 1099 Forms (Misc) at this point. The 1099 may be prepared several different ways, and do not have to be printed as part of the year-end process (but may be printed later).

If this is the last period-end close in the year (either calendar, which is recommended, or fiscal), you should run Update All Files at End-of-Year.

You may now continue processing the new period. Any activity entered after this point that should have been part of the period just closed, will automatically be included with this new current period. For example, if you have just closed January, causing the current period to be February (assuming a 12 period accounting year), any invoices entered in February with a January expense period, or check printed with a January date, will be treated as, and become part of, the February activity.

Shared Logic recommends that you retain the Period-End reports printed above (Item Journal, Distribution Journal, Check Register, and Trial Balance) as your permanent record. We believe that the Daily Items Journals and various Check Registers may be discarded, although there is accounting opinion to the contrary. There may be other reports that are no longer needed, such as interim trial balances. However, you must determine your specific report retention requirements, not relying solely on Shared Logic's recommendations.