Preparing for period or year-end closing

There are several important steps that you should complete to prepare for a period or year-end closing. Each of these items is conditional, based on your particular way of doing business and the timing of your period close. For example, if you just closed your cash payment cycle, you would not need to run Payment Closing again. Use this procedure to prepare for period or year-end closing.

If you run the year-end closing program before releasing invoices, updating payments and distributions, and reinstating invoices for the previous year, the associated transaction distributions will post to the Period One balance of the new year.

Prepare for period or year-end closing

Use the appropriate forms to complete your preparation for period or year end closing. Use this table to identify the tasks you should perform.
Use To
System Control (GL01.1) Verify the last period closed for the Accounts Payable application and then check to see that system control is turned on.

Basic Invoice (AP20.1)

Taxed Invoice (AP20.2)

Release any invoice that has a manual payment applied and has a check date that precedes the period end date.

Batch Control (AP25.1)

Batch Review (AP25.2)

Batch Release (AP125)

Invoice Release (AP26.1)

Mass Invoice Release (AP126)

Release all invoices that have a post date before the period end date, or change the posting date using Basic Invoice (AP20.1).
Payment Closing (AP170)

Update cash payments, posting all system and manual payments with dates before the period end date. Run this program once for a blank process level, then run it with each or your specific process levels. Closing a cash payment cycle

AP170 also reverses the unrealized gain or loss entry and creates a realized gain or loss general ledger transaction to reflect any exchange rate fluctuation between the invoice date and the payment date.
Invoice Distribution Closing (AP175) Post all invoice and tax distributions using a post through date equal to the period end date. If you use intercompany processing, run this program for each company. You must run this program at least once in an accounting period to transfer released invoice distributions to the General Ledger. Closing invoice distributions
Standard Cost Calculation (PO139) Calculate and create a reversing journal entry for the difference between the purchase order cost and the standard cost for inventory items. This program is only available for standard cost companies.
Paid Invoice Activity Update (AP178)

This form is only needed if you are using Billing and Revenue Management and have contracts with the "Exclude Unpaid AP" option set to Yes.

List the transactions affected by the payment status updates. If the status indicates that the activity requires payment information to be sent to Project Accounting, AP178 will check if the invoice is paid. If invoices related to distributions have been paid, the Project Accounting API removes the hold-not-paid status from the Activity Transaction records (so the transactions can be included on invoices generated from Billing and Revenue Management). When AP178 is run, the output reflects the selected transactions and lists those that were changed.
Invoice Reinstatement (AP190) Reinstate invoices for voided payments. Post all voided payments with a void date before the period end date. Voiding payments
Unrealized Gain/Loss (AP191) Calculate and create unrealized gain and loss general ledger transactions for payment accrual and unrealized gain and loss accounts for companies that pay non-base currency invoices.
Recurring Invoice Update (AP193) To update recurring invoices. Normally, Payment Closing (AP170) creates the next recurrence of any recurring invoices it processes. If you pay all recurring invoices on or before their due date, you never need to run this program. Run this program if you have any unpaid recurring invoices that are past their due date and want to ensure the liability for the next invoice recurrence posts to the current period to be closed.

Employee Advance (EE20.1)

Employee Expense (EE20.2)

Release any advance or expense that has a manual payment applied and has a check date that precedes the period end date, or remove the payment information.
Company Expense Posting (EE175) Update company-paid employee distributions using the post thru date equal to the period end date. If you use intercompany processing, run this program for each company. Processing employee expenses

Bank Transaction Entry (CB20.1)

Reconciliation Variance Adjustment (CB30.1)

Release all bank transactions and reconciliation adjustments that have posting dates before the period end date, or change the posting date on the transaction.
Bank Transaction Posting (CB175) Transfer cash ledger transactions to the general ledger. This program posts transaction entries and reconciliation adjustments through the post thru date you define for the cash code specified and creates a listing of transactions to be posted.
Bill of Exchange Cashing Update (AP180) Update BOE payments for the last year.
Bill of Exchange Distribution Posting (AP185) Update BOE distributions.