The information below provides guidelines for period end closing. There are three sections:
n Periodic Inventory Method
n Perpetual Inventory Method - Standard Costing
n Perpetual Inventory Method - Actual Costing
Steps to perform prior to Period-End of the current period:
Open the next Period’s GL and Inventory
n Go to G/L Chart of Accounts -> Options -> Define G/L Periods, and change the G/L, A/P, and A/R
status to "OPEN" for the subsequent period in order to allow posting to the general ledger.
n Set the Inventory Status to null if it had been ‘Closed’ when first creating the fiscal year.
Note: These are general recommendations, practices may vary depending on each individual
company.
GL Period Status
n Set the Inventory Status to ‘Closed’ when inventory transactions should no longer be posted to the
period that is being finalized.
n Go to System Set-upàSystem ParametersàG/L Set-upàDefine G/L Periodsàchange INV Status
to "CLOSED" so that nothing further can be posted to the period.
When a user attempts to post an inventory transaction with a transaction date that falls within a period
with a closed inventory status the system will prevent the user from posting that transaction and will
surface a message indicating that the inventory status is closed.
This is an example of a receiving transaction with a transaction date of 10/31/14. This falls within GL
period 10 with a Start Date of 10/1/2014 and an End Date of 10/31/14.
Print the Trial Balance report for the period as a starting point or checklist for reconciling various G/L
accounts. The Trial Balance report may be printed again later after all adjustments have been entered
and the period has been closed.
Go to GLàTrial BalanceàReports menu-Print and choose the preferred trial balance report to print.
Accounts Payable
Ensure that all Accounts Payable related items for the period have been entered and posted.
n Purchase Order Receipts - Verify all purchase order receiving has been done for the period. This
is helpful in the event that a receipt was missed and the Inventory Status needs to be reopened to
post the receipt. Utilize a report such as ‘PO Backlog By PO Number’ located in the Purchase
Orders Reports Menu
n AP Invoices - Confirm that all vendor invoices for the period have been entered and posted.
n Receipts Awaiting Invoicing - Run an accrued receipts report located within the AP
Invoices Reports menu. There are reports that begin with ‘Accrued Receipts As Of’ that will
show any outstanding receipts that still need to be invoiced based on the date entered by
the user. Review the report catalog for the report to ensure the correct report is being run
based on the invoicing and inventory parameters enabled. For example, the ‘Accrued
Receipts As Of’ reports can only be run if the user creating the invoice has the invoice
parameter selected called "AP. Inv. from PO: Enable selection by receipts only.’
Security should be placed at the user level to ensure the user does not toggle the parameter off and on.
n Debit Memos- Confirm that all debit memos received for the period have been generated and
posted. Returns to the vendor may have been generated through the Vendor RMA module or
through the PO Receiving module as Rejects. Vendor returns pending debit memos will be included
on the accrued receipts reports.
n Cash Disbursements – Confirm that all manual checks and pending payments have been entered
and posted within the cash disbursement screen.
n Accounts Payable Aging Report - Run an aging report that is located within the AP Invoices
reports menu. A report such as ‘Accounts Payable Aging – Any Period’ should balance to the
corresponding accounts payable GL account.
n Close the AP Status - Go to G/L-> Chart of Accounts -> Options -> Define G/L Periods and set
the A/P Status to "Closed" so that nothing further can be posted to the period.
Accounts Receivable
Ensure that all Accounts Receivable related items for the period have been entered and posted:
n Pack Slips and Pick Tickets - Verify all pick tickets and pack slips are posted for the period. This
is helpful in the event that a shipment was physically shipped but not entered into the system
which would require that the Inventory Status be reopened to post the pick ticket. If the pick ticket
parameter called ‘Verify Inventory before relieving’ is enabled then ensure that all pack slips have
been verified as this is the function that relieves the inventory from the on hand totals. Utilize a
backlog report such as ‘Open Order Backlog - by Customer’ that can be found within the Sales
Orders Reports Menu.
n AR Invoices - Confirm that all customer invoices for the period have been entered and posted.
n Shipments Pending Invoicing - Run the ‘Shipments Pending Invoicing at Standard Cost’
report to make sure that all items for which packing slips have been issued have been
invoiced. This report can be found in the AR Invoices Reports Menu.
n Credit Memos – Confirm that all credit memos for the period generated and posted. Refer to the
report called ‘RMA’s Pending Credit Memo’ found in the AR Invoices Reports Menu.
n Cash Receipts – Confirm that all adjustments and cash receipts have been entered and posted
within the cash receipts screen.
n Accounts Receivable Aging Report - Run an aging report that is located within the AR Invoices
reports menu. A report such as ‘Accounts Receivable Aging – Any Period’ should balance to the
corresponding accounts receivable GL account.
n Close the AR Status - Go to G/L Chart of Accounts -> Options -> Define G/L Periods and set the
A/R Status to "Closed" so that nothing further can be posted to the period.
Inventory
n Production - Ensure that all production reports for the period have been entered and all
dispositions are completed.
n Inventory - Enter and post any other items that may affect inventory balances.
n Inventory Reports- Run the report called ‘Inventory Value At Cost By GL Account As Of By
Transaction Date’. This report can be found in the Inventory Reports Menu. This is just a
recommendation, however, there are many inventory reports to choose from. Assembly (AssyX)
manufactures can also run the report called ‘Assembly Work Order WIP Analysis’ to gather WIP
Process GL Account balances.
n Cost of Goods Sold - Run a purchase report to construct cost of goods sold for period end.
Within AP-View Posted Invoices- there is a report called ‘Accounts Payable Distribution By Period.’
n GL Inventory and COGS Adjustments - Make any necessary Inventory and COGS adjustments to
the GL.
Go to GLàBank Reconciliation and reconcile all bank accounts if the bank statement cut off is at periodend.
If the bank statement end date is not at period end then adjusting entries can still be posted if
known at this time due to online banking capabilities.
Make sure that all General Journal entries have been posted for the period. Confirm there are no pending
GJ entries including reversing and recurring journal entries.
Go to System Set-up, System Parameters, G/L Set-up, Define G/L Periods, and change G/L Status to
"CLOSED" so that nothing further can be posted to the period.
Run a final Trial Balance report and check all general ledger transactions to ensure that these have been
posted to the correct G/L accounts.
Financial statements can be run through GL – Financial Reports or though EIQ Spreadsheet Server
When running the Income Statement from within the EIQ Financial Reports Menu, in order to get the
Gross Profit calculated on the stock reports the system is looking for an ‘Account Type’ of Cost of Goods
Sold. Any subaccount types of that account type will be included in the total Cost of Goods Sold
calculation and it will be subtracted from the Revenue accounts to determine the Gross Profit. The Cost of
Goods Sold account type is not necessary when building financials from EIQ Spreadsheet Server.
When running the Balance Sheet from within the EIQ Financial Reports Menu the system automatically
pulls the Current Earnings from the Net Income calculated by the system.
Steps to perform prior to Period-End of the current period:
Open the next Period’s GL and Inventory
n Go to G/L Chart of Accounts -> Options -> Define G/L Periods, and change the G/L, A/P, and A/R
status to "OPEN" for the subsequent period in order to allow posting to the general ledger.
n Set the Inventory Status to null if it had been ‘Closed’ when first creating the fiscal year.
GL Period Status
Set the Inventory Status to ‘Closed’ when inventory transactions should no longer be posted to the period
that is being finalized.
Go to System Set-upàSystem ParametersàG/L Set-upàDefine G/L Periodsàchange INV Status to
"CLOSED" so that nothing further can be posted to the period.
When a user attempts to post an inventory transaction with a transaction date that falls within a period
with a closed inventory status the system will prevent the user from posting that transaction and will
surface a message indicating that the inventory status is closed.
This is an example of a receiving transaction with a transaction date of 10/31/14. This falls within GL
period 10 with a Start Date of 10/1/2014 and an End Date of 10/31/14.
Print the Trial Balance report for the period as a starting point or checklist for reconciling various G/L
accounts. The Trial Balance report may be printed again later after all adjustments have been entered
and the period has been closed.
Go to GLàTrial BalanceàReports menu-Print and choose the preferred trial balance report to print.
Ensure that all Accounts Payable related items for the period have been entered and posted.
n Purchase Order Receipts - Verify all purchase order receiving has been done for the period. This
is helpful in the event that a receipt was missed and the Inventory Status needs to be reopened to
post the receipt. Utilize a report such as ‘PO Backlog By PO Number’ located in the Purchase
n AP Invoices - Confirm that all vendor invoices for the period have been entered and posted.
n Receipts Awaiting Invoicing - Run an accrued receipts report located within the AP
Invoices Reports menu. There are reports that begin with ‘Accrued Receipts As Of’ that will
show any outstanding receipts that still need to be invoiced based on the date entered by
the user. The grand total on this report should tie out to the Accrued Receipts GL account
when using a perpetual inventory method. Review the report catalog for the report to
ensure the correct report is being run based on the invoicing and inventory parameters
enabled. For example, the ‘Accrued Receipts As Of’ reports can only be run if the user
creating the invoice has the invoice parameter selected called "AP. Inv. from PO: Enable
selection by receipts only.’
Security should be placed at the user level to ensure the user does not toggle the parameter off and on.
Here are some other examples of reports that should be used for different parameters: The report called
‘Accrued Receipts At Purchase Price For The Period Ending’ should be used when the Inventory
Parameter called Realize PPV at time of Receipts is enabled, and the report called ‘Accrued Receipts For
the Period Ending’ includes the totals with standard costs and should be use when ‘Realize PPV at time of receipt’ is not enabled.
n Debit Memos- Confirm that all debit memos received for the period have been generated and
posted. Returns to the vendor may have been generated through the Vendor RMA module or
through the PO Receiving module as Rejects. Vendor returns pending debit memos will be included
on the accrued receipts reports.
n Cash Disbursements – Confirm that all manual checks and pending payments have been entered
and posted within the cash disbursement screen.
n Accounts Payable Aging Report - Run an aging report that is located within the AP Invoices
reports menu. A report such as ‘Accounts Payable Aging – Any Period’ should balance to the
corresponding accounts payable GL account.
n Close the AP Status - Go to G/L-> Chart of Accounts -> Options -> Define G/L Periods and set
the A/P Status to "Closed" so that nothing further can be posted to the period.
Ensure that all Accounts Receivable related items for the period have been entered and posted:
n Pack Slips and Pick Tickets - Verify all pick tickets and pack slips are posted for the period. This
is helpful in the event that a shipment was physically shipped but not entered into the system
which would require that the Inventory Status be reopened to post the pick ticket. If the pick ticket
parameter called ‘Verify Inventory before relieving’ is enabled then ensure that all pack slips have
been verified as this is the function that relieves the inventory from the on hand totals. Utilize a
backlog report such as ‘Open Order Backlog - by Customer’ that can be found within the Sales
n AR Invoices - Confirm that all customer invoices for the period have been entered and posted.
n Shipments Pending Invoicing - Run the ‘Shipments Pending Invoicing at Standard Cost’
report to make sure that all items for which packing slips have been issued have been
invoiced. This report can be found in the AR Invoices Reports Menu. If the inventory
parameter called ‘Post shipments awaiting invoicing / PIT' is enabled then the balance of
this report added together with the balance from the report called ‘RMA’s Pending Credit
Memo’ should tie out to the corresponding Shipments Pending Invoicing GL account. Note
that if using the VMI module then there could be a balance left in the GL account for
consumptions not yet invoiced.
n Credit Memos – Confirm that all credit memos for the period generated and posted. Refer to the
report called ‘RMA’s Pending Credit Memo.’
n Cash Receipts – Confirm that all adjustments and cash receipts have been entered and posted
within the cash receipts screen.
n Accounts Receivable Aging Report - Run an aging report that is located within the AR Invoices
reports menu. A report such as ‘Accounts Receivable Aging – Any Period’ should balance to the
corresponding accounts receivable GL account.
n Close the AR Status - Go to G/L Chart of Accounts -> Options -> Define G/L Periods and set the
A/R Status to "Closed" so that nothing further can be posted to the period.
Inventory
n Production - Ensure that all production reports for the period have been entered and all
dispositions are completed.
n Inventory - Enter and post any other items that may affect inventory balances. If a physical
inventory or cycle count has been performed, make sure that all adjustments to inventory balances
have been posted through Post Inventory Transactions (PIT).
n Post Inventory Transactions - Post all relevant transaction types.
n Run the PIT scope for the full period for each transaction type. Make note of the dates of
outstanding transactions. Then set the scope back to each day with pending transactions
and prepare the GJ entry for those entries. Post to the GL
n PIT – ‘Disposition’ type - Ensure that you uncheck the option ‘Hide Unprocessed Floor
Dispositions’ to see if there are any transactions that were not associated to their
corresponding raw material consumption transactions (production report).
n When using EPlant remember to log in as ‘View All’ and post InterPlant Transfers
n Ensure that all GJ entries that impact the inventory GL accounts are posted. An example of
a possible pending entry is the "Account Revaluation" GJ entry that is created automatically
when recalculating and rolling standard costs.
n Inventory Reports- Run the report called ‘Inventory Value At Cost By GL Account As Of By
Transaction Date’. This report can be found in the Inventory Reports Menu. Assembly (AssyX)
manufactures can also run the report called ‘Assembly Work Order WIP Analysis’ to reconcile to the
n Compare Inventory Report to GL Account Balances - Compare the sub-totals on this report to
any corresponding general ledger inventory accounts. Run an updated Trial Balance report for
comparison. If your inventory account balances do not tie out to the inventory report then refer to
the section called Comparing Perpetual On Hand to the General Ledger Inventory Accounts.
Bank Reconciliation
Go to GLàBank Reconciliation and reconcile all bank accounts if the bank statement cut off is at periodend.
If the bank statement end date is not at period end then adjusting entries can still be posted if
known at this time due to online banking capabilities.
Make sure that all General Journal entries have been posted for the period. Confirm there are no pending
GJ entries including reversing and recurring journal entries.
n Go to System Set-up, System Parameters, G/L Set-up, Define G/L Periods, and change G/L Status
to "CLOSED" so that nothing further can be posted to the period.
n Run a final Trial Balance report and check all general ledger transactions to ensure that these have
been posted to the correct G/L accounts.
Financial statements can be run through GL – Financial Reports or though EIQ Spreadsheet Server
n When running the Income Statement from within the EIQ Financial Reports Menu, in order to get
the Gross Profit calculated on the stock reports the system is looking for an ‘Account Type’ of Cost
of Goods Sold. Any subaccount types of that account type will be included in the total Cost of
Goods Sold calculation and it will be subtracted from the Revenue accounts to determine the Gross
Profit. The Cost of Goods Sold account type is not necessary when building financials from EIQ
n When running the Balance Sheet from within the EIQ Financial Reports Menu the system
automatically pulls the Current Earnings from the Net Income calculated by the system.
Steps to perform prior to Period-End of the current period:
Open the next Period’s GL and Inventory
n Go to G/L Chart of Accounts -> Options -> Define G/L Periods, and change the G/L, A/P, and A/R
status to "OPEN" for the subsequent period in order to allow posting to the general ledger.
n Set the Inventory Status to null if it had been ‘Closed’ when first creating the fiscal year.
GL Period Status
Set the Inventory Status to ‘Closed’ when inventory transactions should no longer be posted to the period
that is being finalized.
Go to System Set-upàSystem ParametersàG/L Set-upàDefine G/L Periodsàchange INV Status to
"CLOSED" so that nothing further can be posted to the period.
When a user attempts to post an inventory transaction with a transaction date that falls within a period
with a closed inventory status the system will prevent the user from posting that transaction and will
surface a message indicating that the inventory status is closed.
This is an example of a receiving transaction with a transaction date of 10/31/14. This falls within GL
period 10 with a Start Date of 10/1/2014 and an End Date of 10/31/14.
Print the Trial Balance report for the period as a starting point or checklist for reconciling various G/L
accounts. The Trial Balance report may be printed again later after all adjustments have been entered
and the period has been closed.
Go to GLàTrial BalanceàReports menu-Print and choose the preferred trial balance report to print.
Ensure that all Accounts Payable related items for the period have been entered and posted.
n Purchase Order Receipts - Verify all purchase order receiving has been done for the period. This
is helpful in the event that a receipt was missed and the Inventory Status needs to be reopened to
post the receipt. Utilize a report such as ‘PO Backlog By PO Number’ located in the Purchase
n AP Invoices - Confirm that all vendor invoices for the period have been entered and posted.
n Receipts Awaiting Invoicing - Run an accrued receipts report located within the AP
Invoices Reports menu that includes the purchase price.
The report called ‘Accrued Receipts As Of At Purchase Price’ will show any outstanding receipts that still
need to be invoiced based on the date entered by the user. The grand total on this report should tie out
to the Accrued Receipts GL account when using a perpetual inventory method. Review the report catalog
for the report to ensure the correct report is being run based on the invoicing and inventory parameters
enabled. For example, the ‘Accrued Receipts As Of At Purchase Price’ report can only be run if the user
creating the invoice has the invoice parameter selected called "AP. Inv. from PO: Enable selection by
receipts only.’
Security should be placed at the user level to ensure the user does not toggle the parameter off and on.
n Debit Memos- Confirm that all debit memos received for the period have been generated and
posted. Returns to the vendor may have been generated through the Vendor RMA module or
through the PO Receiving module as Rejects. Vendor returns pending debit memos will be included
on the accrued receipts reports.
n Cash Disbursements – Confirm that all manual checks and pending payments have been entered
and posted within the cash disbursement screen.
n Accounts Payable Aging Report - Run an aging report that is located within the AP Invoices
reports menu. A report such as ‘Accounts Payable Aging – Any Period’ should balance to the
corresponding accounts payable GL account.
n Close the AP Status - Go to G/L-> Chart of Accounts -> Options -> Define G/L Periods and set
the A/P Status to "Closed" so that nothing further can be posted to the period.
Accounts Receivable
Ensure that all Accounts Receivable related items for the period have been entered and posted:
n Pack Slips and Pick Tickets - Verify all pick tickets and pack slips are posted for the period. This
is helpful in the event that a shipment was physically shipped but not entered into the system
which would require that the Inventory Status be reopened to post the pick ticket. If the pick ticket
parameter called ‘Verify Inventory before relieving’ is enabled then ensure that all pack slips have
been verified as this is the function that relieves the inventory from the on hand totals. Utilize a
backlog report such as ‘Open Order Backlog - by Customer’ that can be found within the Sales
n AR Invoices - Confirm that all customer invoices for the period have been entered and posted.
n Shipments Pending Invoicing - Run the ‘Shipments Pending Invoicing’ report to make
sure that all items for which packing slips have been issued have been invoiced. This report
can be found in the AR Invoices Reports Menu.
n Credit Memos – Confirm that all credit memos for the period generated and posted. Refer to the
report called ‘RMA’s Pending Credit Memo.’
n Cash Receipts – Confirm that all adjustments and cash receipts have been entered and posted
within the cash receipts screen.
n Accounts Receivable Aging Report - Run an aging report that is located within the AR Invoices
reports menu. A report such as ‘Accounts Receivable Aging – Any Period’ should balance to the
corresponding accounts receivable GL account.
n Close the AR Status - Go to G/L Chart of Accounts -> Options -> Define G/L Periods and set the
A/R Status to "Closed" so that nothing further can be posted to the period.
Inventory
n Production - Ensure that all production reports for the period have been entered and all
dispositions are completed.
n Inventory - Enter and post any other items that may affect inventory balances. If a physical
inventory or cycle count has been performed, make sure that all adjustments to inventory balances
have been posted through Post Inventory Transactions (PIT).
n Post Inventory Transactions - Post all relevant transaction types.
n Run the PIT scope for the full period for each transaction type. Make note of the dates of
outstanding transactions. Then set the scope back to each day with pending transactions
and prepare the GJ entry for those entries. Post to the GL
n PIT – ‘Disposition’ type - Ensure that you uncheck the option ‘Hide Unprocessed Floor
Dispositions’ to see if there are any transactions that were not associated to their
corresponding raw material consumption transactions (production report).
n When using EPlant remember to log in as ‘View All’ and post InterPlant Transfers
n Ensure that all GJ entries that impact the inventory GL accounts are posted.
n Inventory Reports- Run the report called ‘Inventory Actual Costs by Location. This report can be
found in the Inventory Reports Menu. An IQAlert may be set up to run this report at period-end
during your company’s desired cut-off.
n Compare Inventory Report to GL Account Balances - Compare the sub-totals on this report to
any corresponding general ledger inventory accounts. Run an updated Trial Balance report for
comparison.
Go to GLàBank Reconciliation and reconcile all bank accounts if the bank statement cut off is at period-
end. If the bank statement end date is not at period end then adjusting entries can still be posted if
known at this time due to online banking capabilities.
Make sure that all General Journal entries have been posted for the period. Confirm there are no pending
GJ entries including reversing and recurring journal entries.
n Go to System Set-up, System Parameters, G/L Set-up, Define G/L Periods, and change G/L Status
to "CLOSED" so that nothing further can be posted to the period.
n Run a final Trial Balance report and check all general ledger transactions to ensure that these have
been posted to the correct G/L accounts.
Financial statements can be run through GL – Financial Reports or though EIQ Spreadsheet Server
n When running the Income Statement from within the EIQ Financial Reports Menu, in order to get
the Gross Profit calculated on the stock reports the system is looking for an ‘Account Type’ of Cost
of Goods Sold. Any subaccount types of that account type will be included in the total Cost of
Goods Sold calculation and it will be subtracted from the Revenue accounts to determine the Gross
Profit. The Cost of Goods Sold account type is not necessary when building financials from EIQ
Spreadsheet Server.
n When running the Balance Sheet from within the EIQ Financial Reports Menu the system
automatically pulls the Current Earnings from the Net Income calculated by the system.
Standard and Actual Costing
System Parameters Associated to
Costing
Cost Elements
Assigning Cost Elements and
Standard Costing Example
Other Costing Functions
Posting Inventory Transactions at
Standard
Post Inventory Transaction Examples
for Standard Costing
Comparing Perpetual On Hand to the
General Ledger Inventory Accounts
Post Inventory Transactions at
Actual
Fiscal Year-End Closing Procedures
Introduction to Process Costing