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Microsoft Dynamics GP (Archived)

Month End Procedures Issues

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Posted on by 150

Can someone please clarify if the Accounts Receivable, Accounts Payable, Purchasing and Sales Module need to be closed for several working days after all data relating to the current month has been entered?

I have a situation where these modules are shutdown for a few days before the new month is opened.

This causes a build of work and causes a complete stop in processing/uploading etc, hence giving rise to host of problems.

I have been told that the Financial Series containing the Bank & GL modules must be closed to avoid any new information flowing through and causing further issues.

Could someone please explain how they structure their month end procedures and most of all whether are indeed closed for days in between accounting months?

Thank you

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  • Max Catenacci Profile Picture
    Max Catenacci 150 on at
    Re: Month End Procedures Issues

    Following on my past postings I have been able to establish that most of the issues surrounding my company's delays around the month end is due to the completion of bank recs. An auto reconcile process is used which, as the name suggests, reconciles the amounts received/paid in the bank against GP cash book. One of the issues which has been encountered is when at times some bank transactions in a new month actually affect the G/L in the previous month, thereby having an effect on the bank rec. An example of this is an AP EFT batch processed in the new month which actually affected the G/L in the previous month. Has anyone come across this issue previously? Thank you.

  • Verified answer
    Victoria Yudin Profile Picture
    Victoria Yudin 22,766 on at
    Re: Month End Procedures Issues

    Max,

    Yes, in the context of this conversation, I agree with you when you say, "...all data...can continue to be entered/processed at all times, provided that the GL Posting date is in the appropriate month".  

    I have never heard of a need to cease all activities every month while the prior month is closed.  That's not practical or even possible for most companies.  That said, every company is different, has different requirements, different needs and different resources.  There may be other, non-GP specific reasons why your company does what it does.  However, if you have been led to believe that this is a requirement or limitation in GP and it is becoming a hindrance in your operations, then I would recommend working with your GP partner on some training for your users to understand these concepts better and for help with coming up with a realistic month end close plan that does not require such drastic measures.

  • Max Catenacci Profile Picture
    Max Catenacci 150 on at
    Re: Month End Procedures Issues

    Thank you Victoria for your reply.

    If I understand correctly, all data, including processing of sales invoices, receipts from debtors, journals, stock movements etc. can continue to be entered/processed at all times, provided that the GL Posting date is in the appropriate month (for financial reporting purposes). Things like Bank Reconciliations should also not be affected adversely if processed in the correct month.  Subledgers data can be extracted in any case to obtain details of individual transactions and determine accuracy etc. Could you please clarifiy, keeping in mind my previous comments relating to the ceasing of all activities until the new month is opened? Thank you.

  • Verified answer
    Victoria Yudin Profile Picture
    Victoria Yudin 22,766 on at
    Re: Month End Procedures Issues

    Sorry, but I must respectfully disagree with the following statement:  "When Sales Document Date, for example, is June but the Batch Date is July, and assuming the Posting setup is configured to get Posting Date from Batch, then GL posting date will be July.  Here, you will find inconsistency when you reconcile the GL and SOP modules."

    Each subledger transaction is Dynamics GP has 2 dates.  There are many names for them (some more on dates here: victoriayudin.com/.../whats-with-all-these-dates), however typically they are referred to as the Document Date and the GL Posting Date.  These two dates do not need to be in the same month/period.  Both will be tracked with each subledger transaction and can be reported on.  Only the GL Posting Date will be used when posting to the GL.  When you are reconciling a subledger to the GL, if you use the GL Posting Date there will be no "inconsistency".

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    Re: Month End Procedures Issues

    My two cents:

    When Sales Document Date, for example, is June but the Batch Date is July, and assuming the Posting setup is configured to get Posting Date from Batch, then GL posting date will be July.

    Here, you will find inconsistency when you reconcile the GL and SOP modules.

    Closing the July period will give you a safeguard that you will not post June transaction to July GL.

    I hope that clarifies something.

  • Suggested answer
    Frank Hamelly | MVP, MCP, CSA Profile Picture
    Frank Hamelly | MVP... 46,274 Super User 2025 Season 1 on at
    Re: Month End Procedures Issues

    Max,

    My view is that all transactions are posting date sensitive, any reports should be run accordingly and the need for period close offs would be obsolete - your view is correct.  All closing the periods in GP does is prevent posting into those periods and they can be opened and closed at will, as often as you need to.

    To take this a step further, if you click on the 'Mass Close' button at the bottom right of the Fiscal Periods window, you can selectively close individual transaction types for a period without closing the whole module.  This provides more granular control of period closing.

    Hope this helps,

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    Re: Month End Procedures Issues

    Max,

        We use Accounts Payable and the GL in GP2010.  Entries made into accounts payable end up making entries in the General Ledger.  To prevent posting errors related to dates we keep three months open for posting in accounts payable and all the rest of the months closed.  This past July 2nd (Monday) we closed all payables posting to June so no more June payables transactions could be entered.  That means the June General Ledger can not be changed by something happening in the payables system.  We keep July payables open since any postings in July payables will affect the July General Ledger and will not affect June General Ledger.  Our accounts payable people continue to work with July invoices including entering vouchers, posting vouchers and paying vendors all in July while the accountants are closing out June.  It works for us.

    Keith McConnell

  • Max Catenacci Profile Picture
    Max Catenacci 150 on at
    Re: Month End Procedures Issues

    Thank you very much Frank.

    I am a little new to GP, hence, my question, because I have never seen this approach before.

    Once all data for the prior month has been entered, the company chooses to keep all these modules closed in order to run financial reports, complete bank reconciliations etc etc. Once this is all done they then re open the modules for next month's processing to begin. This time lag can be as long as 2 weeks in some cases. My view is that all transactions are posting date sensitive, any reports should be run accordingly and the need for period close offs would be obsolete.  Your thoughts please?

  • Suggested answer
    Frank Hamelly | MVP, MCP, CSA Profile Picture
    Frank Hamelly | MVP... 46,274 Super User 2025 Season 1 on at
    Re: Month End Procedures Issues

    Max, there is no requirement to close periods throughout the year.  As long as the transaction dates on any transactions posted fall within the correct period, your periods will maintain transactional integrity.  Many companies close prior periods and keep a limited number of future periods open to safeguard against accidental posting into those periods but the system does not require any period closing to function properly.

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