How To: Completing a Month End Close
Overview
This tutorial describes how to process a month end close. The steps should be completed in the order they are described.
Table of Contents
1. Initial Steps
After the following initial steps are completed, inventory movement, including sales, can resume as normal. Additional steps are needed if you are using Service or Rental. Please refer to Tyler documentation for more information.
a. Update S/A Inventory Figures (05-02)
Run this selection to update the current GMROI on the Sales Analysis reports.
b. Inventory Valuation for Merchandise (03-63)
This report is used later in the month end process to reconcile the merchandise inventory account in General Ledger. When running this report, include all inventory types in the print selection, with the exception of Parts Inventory. Review for negative quantity and cost, and review for blank costs, which will adversely affect your report.
Total QTY x Net Cost (Field 13 in Inventory Master) = Inventory Value
c. Inventory Valuation for Parts (03-63)
If you are using Service, we recommended that you print a separate valuation report that includes only Parts Inventory. This will be used later to reconcile to the Parts Inventory account in G/L.
Total QTY x Net Cost (Field 2 in Parts Master) = Parts Value
d. Installed Parts Report (07-40)
This selection prints a report, by branch, of all parts that are currently installed on open work orders, with a total valuation at Vendor Price. This report can be used in conjunction with the Inventory Valuation report (03-63) to provide a complete company inventory.
e. Rental Asset List (22-41)
This selection prints a complete listing of the assets in the Rental Asset Master File and can be used to reconcile against the Rental Asset G/L account.
f. Received not Invoiced (04-44)
Print this report, which lists all received purchase orders for which the invoice has not been processed. The General Ledger is not affected when purchase orders are received; not until the invoices are processed through P/O to A/P Entry do the Merchandise Account and Payables Liability Account in G/L increase. Until invoices are processed, we account for the total value in our financials using this report to make a necessary reversing journal entry discussed later in the work schedule.
A Job Stream (05-01) can be set-up to run the above procedures.
After these steps are completed, inventory movement can resume as normal, including sales for the new month. There is no need to halt sales in Tyler until month end is 100% complete.
Unless specifically stated the following steps should be performed in the order in which they are listed. If you have any questions regarding this order, please contact Tyler Support for assistance.
2. Sales Transactions
a. G/L Spreadsheet (02-40) (optional)
This report recaps the daily sales transaction totals for the month, per store. This is a recommended report, although not required in the month end close process. If issues are found later when reconciling G/L you may want to use this report for research.
b. Sales Tax Report (02-43-01, 02-43-02, 02-43-03)
These selections are used to print Sales Tax Reports. The Sales Tax Report selection (02-43-01) prints a breakdown of all Sales Tax Codes and Levels for each branch including exceptions for departments within the Sales Tax Codes. Totals for each Sales Tax Code print at the end of the report. The Sales Tax Detail Report (02-43-02) is a more comprehensive report that includes each sales transaction number with customer information. Several include/exclude and sort features are available. The GUI Sales Tax Report (02-43-03) is a combination of both reports that can be viewed on the screen (no print required).
The Rental Sales Tax Report can be included in this report or run separately through 22-82.
c. Credit Card Summary (02-44)
This report recaps the daily credit card deposits per branch and per credit card type for the month. The report is typically used for reconciling your bank deposits or for end of year reporting.
d. Reset Status Control (02-42)
This step closes sales for the current month and changes the Status Inquiry Screen (02-01) to the new month. In order to run this selection, Start of Day must be set to a date that is not in the month that is being closed. Sales transactions for the new month can be entered, but not updated until Sales Analysis (05-80) has been closed.
3. Sales Analysis
Before running any Sales Analysis reports, make sure that Selection 05-16 is set to the appropriate reporting type (‘W’ for Written Sales or ‘D’ for Delivered Sales).
a. Sales Analysis Reports
Print all reports that are needed before closing Sales Analysis for the month (05-80). You can run the reports as many times as necessary before clearing the month to date figures through Reset Month Sales History (05-80).
Once Sales Analysis is closed, some reports will no longer be available for printing in Tyler.
b. Cost of Goods Sold Report (05-05)
Make sure that you run this report, which lists merchandise sales versus merchandise costs and breaks down Non Inventory Product Type sales versus costs. This report can be used to reconcile these accounts in G/L.
Cost of goods is written to the General Ledger daily for merchandise inventory and parts inventory, when Sales Transactions Update is run (02-05).
Ticket G/L Interface
If the ‘Post Non-Inventory Product Type Costs’ box is checked in Ticket G/L Interface (02-18-13), the cost of goods for Non-Inventory Product Types are automatically written to the General Ledger. The costs will post to the same GL accounts as regular retail items (Merchandise Inventory and Cost of Goods Sold from Sales Analysis).
If the box is not checked, the cost of goods for Non-Inventory items do not post to the General Ledger. For these items you can review the Sales Analysis Monthly COGS & Misc. Report (05-05) for any manual journal entries that need to be made to the financials.
Before changing this setting, we recommend contacting Tyler support to learn the benefits and drawbacks of using this feature.
Job Stream
Setting up a Job Stream (05-01) allows for a group of reports to batch print by initiating the Job Stream Code that contains the reports. If you print your job stream to spooler, please make sure to verify that your reports printed correctly before closing Sales Analysis. Once Sales Analysis is closed, these reports will no longer be available in Tyler without pulling a backup.
c. Reset Month Sales History (05-80)
When all desired reports have been printed, run this selection to zero the monthly figures and increase the Quarter to Date (QTD) and Year to Date (YTD) figures. You cannot update sales (02-05) in the new month until this selection is run.
d. Set Monthly Quota (05-64) (optional)
This selection sets the sales quotas for each branch or department for the new month. Quotas will print on select Sales Analysis reports to compare your current sales against your target totals for the new month.
4. A/R Installment
a. Bank Deposit Listing (13-37)
This report contains a listing of transactions entered through Cash Receipt Entry (13-01) and can be used in reconciling bank statements or G/L. For a complete list of all bank deposits affecting A/R Installment, combine this list with the G/L Spread Sheet (02-40). After printing the report using Option 1, run Clear Deposit File, Option 2, for new month entries.
b. Analysis of Delinquent (13-50-10)
This selection prepares the data affecting Installment Receivables and updates the figures in PULSE (13-60).
c. PULSE (13-60)
Pulse is a one-page report of the Installment Receivables data showing aging and statistics.
d. Aged Analysis By Selection (13-34)
This report total is reconciled to the Installment Receivable Control Account (ARI) in the General Ledger and should match the total.
Print selections for Reconciling the Subsidiary Ledger to the General Ledger:
- Aging Category –All (1)
- Type of Balance – All (1)
- Sorting – Any
- Type of Account – All (1)
- Range – All (1)
e. A/R Sales Report (13-36-02)
This report lists information for the current processing month.
f. Insurance Company Report (13-36-03)
This report lists all insurance sold, insurance rebates on pay-off, and add-ons.
g. Recency Aging Report (13-36-06)
This report lists all accounts aged according to the ‘Walter Heller Recency Calculation Formula.’ This report shows accounts being paid at a steady rate even if the amount being paid is less than the actual amount due. The account must have at least three months of activity before the Recency Aging is valid.
h. Prepare Recency Aging File (13-36-07)
This selection produces a file ‘CR15’ that is used if you need to have a copy of the Recency report for file transfer. With Super Highway , you can move the file to any type of environment you need.
i. Monthly Finance Spread Sheet (13-36-10)
This report prints a Finance Charge Spread of all contracts entered within the current month. It lists total finance charges and insurances as well as spreading finance charge totals over the length of the contract (up through three years).
j. Pay-Off Report (13-45)
This report lists all accounts and their payoff amounts as of a specified date. The report may be printed in account number or alpha name sequence, and once the sequence has been selected, the report can be printed for active accounts, write-off accounts or both.
5. A/R Revolving
a. Bank Deposit Listing (14-37)
This report contains a listing of transactions entered through Cash Receipt Entry (14-01) and can be used in reconciling bank statements or G/L. For a complete list of all bank deposits affecting A/R Revolving, combine this list with the G/L Spread Sheet (02-40). After printing the report using Option 1, run Clear Deposit File, Option 2, for new month entries.
b. Analysis Of Delinquent (14-50-10)
This selection prepares the data affecting Revolving Receivables and updates the figures in PULSE (14-60).
c. PULSE (14-60)
Pulse is a one-page report of the Revolving Receivables data showing aging information.
d. Aged Analysis By Selection (14-34)
This report total is reconciled to the Revolving Receivables Control Account (ARR) in the General Ledger and should match the total.
Print selections for Reconciling subsidiary ledger to G/L:
- Aging Category –All (1)
- Type of Balance – All (1)
- Sorting – Any
- Type of Account – All (1)
- Range – All (1)
6. A/R Open
a. Bank Deposit Listing (12-37)
This report contains a listing of transactions entered through Cash Receipt Entry (12-01) and can be used in manual reconciliation of bank statements or G/L. For a complete list of all bank deposits, combine this list with the G/L Spread Sheet (02-40). After printing the report using Option 1, run Clear Deposit File, Option 2, for new month entries.
b. Pre-Statement/Aging Processing (12-40)
This process ages the A/R accounts into Future, Current, and 30, 60 & 90 Days Past Due, based on the method selected in Open A/R Preferences (12-90). The aging date is typically the last day of the month being closed, although your company may have a different procedure.
If your company does not print A/R Statements, enter “N” at the ‘Prepare File to Print Statements’ prompt. However, if you assess service charges you must print statements to calculate those charges.
c. Statement Print (12-41)
You can only print statements for accounts that have been aged in 12-40 and for which the ‘Prepare File to Print Statements’ prompt was answered ‘Y’ during the aging process. Past due messages can be changed before printing statements at the Change Delinquency prompt.
Non-laser statements are printed to a physical printer or to a spooler. Laser statements are printed to a physical printer or directly to a PDF file. These printer preferences are set up in Open A/R Preferences (12-90).
d. Prepare Delinquency Statistics (12-25)
This selection prepares the data affecting Accounts Receivable and updates the figures in PULSE (12-60).
e. PULSE (12-60)
PULSE is a one-page graph-type report of the Accounts Receivable data showing various aging and statistical information.
f. Aged Analysis By Selection (12-34)
This report total is reconciled to the Accounts Receivable Control Account in the General Ledger and the totals for each report should match.
For reconciling the Subsidiary Ledger to G/L, your print selections should be:
- Aging Category –All (1)
- Type of Balance – All (1)
- Sorting – Any
- Type of Account – All (1)
- Range – All (1)
Tyler customer deposits are held in the A/R subsidiary ledger and credit the A/R control account on the balance sheet. If your company wants to make a reversing journal entry to move the customer deposits out of the A/R Control Account in G/L to a customer deposit liability account, print an aging report just on customer deposits for the total credit amount.
For obtaining a report of customer deposits for journal entry purposes your print selections should be:
- Aging Category –All (1)
- Type of Balance – Credit Balances (6)
- Sorting – Any
- Type of Account – Business Types (3) – DD, SO, RI & WK
- Range – All (1)
At this time, print any other necessary aging reports.
If your company is using Multi Corp. Same on Tyler, an Aged Analysis for each corporation’s Accounts Receivable should be printed separately. Include both temporary and permanent accounts for each corporation to balance to that corporation’s Accounts Receivable Control Account at the time of reconciliation during General Ledger month end processing. You can choose by branch or range of accounts to break out, depending on set up.
g. Month End Processing (12-80)
This selection will close A/R Open for the month and will reset the monthly sales information in A/R Master. The new Accounts Receivable date will prompt and should be the first day of the new month.
7. Rental
a. Bank Deposit Listing (22-35-01)
This report contains a listing of transactions entered through Cash Receipt Entry (22-01) & may be used in reconciling bank statements or G/L. For a complete list of all bank deposits affecting Rental, combine this list with the G/L Spread Sheet (02-40). After printing the report using Option 1, run Clear Deposit File, Option 2, for new month entries.
b. Sales Tax Report (22-82)
Print this report for tax purposes and to reconcile to the G/L. If rental sales tax was included in the Sales Tax Report (02-43) there is no need to reprint unless you want an additional report.
c. Aged Analysis By Selection (22-34)
This report total is reconciled to the Rental Receivables Control Account in the General Ledger and totals should match.
Print selections for Reconciling Subsidiary Ledger to G/L:
- Aging Category –All (1)
- Type of Balance – All (1)
- Sorting – Any
- Type of Account – All (1)
- Range – All (1)
d. Prepare Delinquency Statistics (22-50-10)
This selection prepares the data affecting Rental Receivables and updates the figures in PULSE (22-60).
e. PULSE (22-60)
Pulse is a one-page graph-type report of the Rental Receivable data showing various aging and statistical information.
f. Depreciation Calc (22-42)
If your company is depreciating rental assets this selection must be run to calculate the depreciation or closing the current month’s Rental will be disallowed.
g. Depreciation Update (22-43)
This selection lists the depreciation amounts computed when Depreciation Calc (22-42) was last run, updating the depreciation amounts to both the asset master records and to the General Ledger.
h. Fully Depreciated List (22-44)
This selection prints a report of all rental assets which are fully depreciated and are still the property of the company.
i. Month End Processing (22-80)
This selection resets the month to date fields to zero and closes rental for the month. If any processing for the current month has not been completed you will receive messages to complete them and closing is disallowed.
8. Accounts Payable
a. Disbursement Reconciliation (11-12-05)
Enter the cut-off date for the month and print the listing. Flag the checks individually “YES” or “NO” or a range of checks as to whether each check has been cleared on the monthly bank statement. If you answer “NO”, the checks will remain on the reconciliation list for the next bank statement as an outstanding check. If history purge is desired checks must be reconciled in this selection.
b. Monthly Invoice Register (11-24)
Print this report using the monthly cut-off date and enter the current month being closed. This selection provides a listing of all invoices, credit memos and payments, which have not been purged, for the entered month and year.
c. Aging Detail (11-20)
The “Total” column on this report will be used later in the month end schedule to reconcile the A/P Control account in the G/L. For the purpose of reconciliation, the A/P Aging Detail can be printed by either future or past due and in summary or detail. The only requirement for reconciliation purposes is that all vendors must be included.
If you are using Multi Corp Same on Tyler, run the Aging reports by corporation to reconcile to G/L for each corporation’s control account.
9. Payroll
The following must be completed after the final payroll for the month/quarter/year has been processed, and before any payroll for the new month/quarter/year has been started.
Monthly, complete the following:
a. MTD, QTD, YTD Reset (10-15)
This selection zeros out the appropriate month-to-date, quarter-to-date, or year-to-date fields in the payroll master file. At end of month only run MTD reset. At end of quarter only run QTD reset. At end of year only run YTD reset.
Quarterly, complete the following steps:
b. Quarterly 941 Register (10-50)
The selection prints a report of all employee’s wages, taxes, etc for the quarter. This report is used in preparing Federal and State Quarterly Tax Reports.
As needed, print the following reports:
c. Commission O/T Report (10-51)
If your company is required to track commission only employees to verify minimum wage earnings and produce checks to compensate for underpayment, this report must be run to calculate the amount of underpayment and set up the earnings in the Payroll Module.
d. State Tax Report (10-52)
Prints a report of all earnings, weeks worked, state tax withheld, and calculates the State Unemployment Tax for each state in which your company has employees.
e. City Tax Report (10-53)
Prints a report of all earnings, weeks worked, and city tax withheld for all cities in which your company has employees.
10. Service Department Automation
a. Print Sub-Contractor Report (07-31)
For the purpose of payroll, this selection can be used to print a report of the sub-contractors labor on updated work orders.
11. Fixed Assets
a. Depreciation Calculation (16-05)
Calculates and prints a report of all Fixed Assets and the current month depreciation that will be updated to General Ledger. If changes need to be made to any asset, do so in Master File Maintenance (16-07) then update the changes in Maintenance Audit/Update (16-08).
b. Depreciation Audit/Update (16-06)
This selection prints the final audit of all Fixed Assets and the current month depreciation that will be updated to the General Ledger.
If your company was using the fixed asset module but stopped using it you must still run the above or your G/L will not allow you to close.
12. General Ledger
a. A/P – P/R – P/O – A/R Audit/Update (15-10)
This selection is the file where all updates in Tyler are held. Updated transactions from A/R, A/P, Payroll, Purchase Orders, Sales and Cost of Goods are kept in this file until the update is run. It is strongly recommended that this selection is run on a daily basis as part of the ‘Sales Day Update’ routine. Updating it daily will provide the most accurate and up to date G/L information. Regardless of how often this report is printed, it is still a necessary step in month end procedures. Once this report is printed, verify the information and update the figures to G/L.
Reconciling Accounts
You can use General Ledger Inquiry (15-07), Preliminary Balance Sheet (15-23), Working Trial Balance Sheet (15-21), or the Monthly Transaction Journal (15-22) to reconcile the General Ledger to the appropriate aging.
b. Accounts Receivable Reconciliation
Compare the totals on the A/R Aging Report to A/R Control Account in the General Ledger; they should match. If the aging does not reconcile to the General Ledger, you may continue closing the month (excluding G/L) but should not purge A/R. After completing the month end process, come back to this step and troubleshoot why A/R does not reconcile. For detailed instructions on reconciling Open A/R, please see the ‘Reconciling A/R Open to G/L’ section of this document.
c. Accounts Payable Reconciliation
Compare A/P Aging to the A/P Control Account in the General Ledger; the totals may or may not match, depending on processing in the Subsidiary Ledger. If the aging does not reconcile to the General Ledger, you can continue closing the month (including G/L) but you should not purge A/P. After completing the month end process, you should come back to this step and troubleshoot why A/P does not reconcile. For detailed instructions on reconciling A/P, please see the ‘Reconciling A/P with G/L’ section of this document.
Standard Journal Entries (Recurring)
d. Standard Entry/Print (15-03)
This selection is only used as a part of month end procedures if maintenance to standard journal entries is needed before updating. For each entry in the file, every month of the corporate year must be flagged to determine whether the standard entry should be processed or not for that month.
For those entries where the dollar amounts change from month to month, enter a nominal amount ($1.00) in the amount fields and modify the amounts through Journal Entry (15-05) each month.
Standard entries may include:
- Received not Invoiced Purchase orders (04-44)
- Debit Inventory and Credit A/P Control Account. Enter an “R” under the “REV” column on the journal entry; the journal will automatically be reversed in the following month.
- Bank service charges or transfers
- Transfer Sales from Retail to Service.
- Debit Retail Sales and Credit Service Sales
- Accrued Payroll not paid within the month. Enter an “R” under the “REV” column on the journal entry and this journal will automatically be reversed in the following month.
e. Standard Entry Processing (15-04)
If standard journal entries are used, this selection is used to process those entries. This selection does not update directly into the General Ledger, but transactions will be placed in the Journal Entry Work File where they can be modified through Journal Entry (15-05). Before making modifications, run Journal Entry Audit/Update (15-06), to determine which transaction numbers have been assigned to these entries. Answer ‘No’ to the Update if you need to make changes to the journal entries.
Journal Entries (Non Recurring)
f. Journal Entry (15-05)
If the reversing journal entry for accrued inventory has not yet been included as a standard journal entry, it should be made at this time. The Received, Not Invoiced report (04-44) printed earlier is used to obtain the dollar amount from the ‘NET’ column.
Enter “R” under REV and:
- Debit – Merchandise Inventory
- Credit – A/P Control
If reversing the customer deposits from the A/R Control account, use the Aging Report printed earlier for customer deposits to obtain the credit amount.
Enter R under REV and:
- Debit – A/R Control Account
- Credit – Payables Customer Deposit account
If selling parts inventory thru 07-45-01 the costs will post the credit to regular merchandise. If keeping a separate parts inventory account in G/L, you will enter a journal entry to move the cost parts amount from merchandise inventory to parts inventory. The P&L side is handled by the system. Use the RDB Report $COP to obtain the total credit to (parts inventory cost)
- Debit – Merchandise Inventory Account
- Credit – Parts Inventory Account
At this time, enter or maintain any additional journal entries needed. Entries may include:
- Corrections to dollar amounts for the Standard (recurring) entries
- Journal Cost of Goods for Non-Inventory Product types that were not auto interfaced
- Journal Payroll entries (If not using Tyler for Payroll)
Journal Entries (Auditing/Updating All Entries)
g. Journal Entry Audit/Update (15-06)
Make sure journals are in balance and that all needed changes have been made to Standard Entries before updating. This selection should be run even if no journal entries have been made, as this selection will also update entries in the future file.
Reconciling Merchandise and Parts Inventory
h. Reconcile Merchandise Inventory
Reconcile the Inventory Valuation Report (03-63) with the Merchandise Inventory account in the General Ledger. These balances will seldom be identical. A difference of up to 2% is considered acceptable. If your difference is greater than 2%, you can still continue to close the month (including G/L). After completing the month end process, come back to this step and troubleshoot why Inventory does not reconcile. For detailed instructions on reconciling Inventory, please see the ‘Reconciling Inventory with G/L’ section of this document.
i. Reconcile Parts Inventory
Reconcile the Inventory Valuation Report (03-63) that included only parts inventory to the appropriate parts inventory G/L account. This is typically either the merchandise inventory account or a separate parts inventory account. For an accurate parts inventory value, you will need to include the value of installed parts from the Installed Parts Report (07-40) which was printed earlier in this work schedule.
j. Reconcile other Accounts as Desired
- Cost of Goods for Merchandise Account vs. Monthly Cogs and Misc (05-05)
- Cost of Goods for Non-Inventory product types vs. Monthly COGS and misc (05-05)
- Cost of Goods for Parts Inventory vs. Monthly Cogs and Misc (05-05)
- Sales Tax Payable (on balance sheet) vs. Sales Tax report (02-43)
- Individual Payroll Tax accounts vs. Quarterly 941 Register (10-50)
- Bank G/L Account vs. Bank Statement
- A/R Installment Control Account vs. A/R Installment Aging (13-34)
- A/R Revolving Control Account vs. A/R Revolving Aging (14-34)
- Rental Control Account vs. Rental Aging (22-34)
- Rental Assets account vs. Rental Asset list (22-41)
13. Purging
a. A/R Open Account Purge Processing (12-42)
This selection purges temporary A/R accounts that have been paid and shipped, as well as paid and shipped transactions in permanent A/R accounts. Purging A/R is a four-step process and each step must be performed in order only after reconciliation totals match. For more information on the criteria for purging, please see the Accounts Receivable Documentation.
b. A/P Month End Transaction File Purge (11-41-03)
This selection purges, from the current transaction file, any invoices and their corresponding payments and/or credit memos (if these have been properly applied) that have a balance of zero. It also deletes, from the Vendor Master File, Office Refund Accounts that have been paid.
This step does not purge A/P history files.
c. Purge Closed Accts (22-71-01)
This section allows the printing of the Pre-Purge Journals and for the purging of closed contracts. All accounts with an ‘X’ status, balance of zero and pay off date less than or equal to the entered cutoff date, will be written to the rental Contract Purge file when this selection is run. After the audit has been printed and verified, the contract information may be deleted. This selection is used to print the pre-purge Journals, prepare the work file to be purged, print an audit of contracts to be purged, allow maintenance of accounts that should not be purged, and to run the actual purge of rental contracts.
d. Purge Sold Assets (22-71-02)
This section will write all assets sold prior to the date requested to a rental asset purge file. After the audit has been printed and verified, the asset information can be deleted. This selection is used to print the work file to be purged, print an audit of assets to be purged, allow maintenance of accounts that should not be purged, and to run the actual purge of rental contracts.
e. Multiple Corporations
- A/P: Match the A/P aging per corporation to each total A/P Control accounts per corporation. If these do not match you may need to run RDB Reports for each corporation.
- A/R: All offsetting entries post to the interim balance sheet. These entries must be moved to the appropriate corporations A/R Control Accounts. Then match the A/R aging per corporation to the A/R Control accounts per corporation. If these do not match you may need to run RDB Reports for each corporation.
- Inventory: All offsetting entries post to the interim balance sheet. These entries must be moved to the appropriate Inventory Accounts per corporation. After completed verify that the Inventory Valuation reports printed earlier balance to the corporations’ Inventory Control Accounts.
- Verify that the entire “Interim” Balance Sheet contains ONLY zero balances. This is the balance sheet that starts with 6 zero’s.
- Verify that ALL Clearing Accounts for the “Interim” Balance Sheet AND the various corporations’ Balance Sheets contain only zero balances.
- Verify each corporation’s consolidated stores Net total equals the amount by which that corporation’s Balance Sheet is “out of balance”. For example, if branches 01, 02, 03 make up Corporation 1 – the total Net for the stores must match out of balance amount on the Balance Sheet for corporation 1. (Assets – Liabilities + Equity)
f. Bank Reconciliation (15-50)
This is not a required step in the month end process however, if you plan to post adjustments (service charges, interest) as a part of your bank reconciliation, please be aware that you may only post adjustments for the current or future G/L month in 15-50. Further, if this is your first bank reconciliation, be aware that prior to the first bank reconciliation a “clean-up” process must be performed. For more information and instructions on Bank Reconciliation and the clean-up process please view the Reconciling G/L with your Bank Statement section.
g. Preliminary Balance Sheet and Income Statements (15-23, 15-24)
Print the Preliminary Balance Sheet and Income Statements. At this time, the Balance Sheet will be out of balance by the total Net Profit/(Loss) shown on the consolidated Income Statement for all locations.
“Total Assets minus Total Liabilities plus Equity should equal the total of all branches’ Net Profit/Loss for the current month”
If the preliminary formula matches the Net:
- Review figures for accuracy
- Make any additional journal entries needed through Journal Entry (15-05) and update through Journal Entry Audit/Update (15-06).If the preliminary formula does not match the net:
If the preliminary formula does not match the Net:
- Do not proceed any further with month end at this time
- Make a note of the amount that is out
- Check all updates and journal entries have been made
- Print a chart of accounts and look for any TABST codes that are out of place
- Review all journal entries that have been made to the current month
- Review any prior period entries that have been made. Use the RDB called $GLPTRN to identify these entries. You may have to maintain the report.
- Review offsetting entries (Income Summary and Current Year Earnings) for prior period journal entries to ensure that they were made correctly. Refer to the documentation on prior period journal entries.
- Run an RDB called $GLBAL. If a true out of balance situation exists, the number manually calculated should match the number found on this RDB
If troubleshooting does not resolve the issue, contact Tyler support for further steps. Please be prepared to provide the support department with the exact steps you have taken and copies of the balance sheet and consolidated income statement. Also please be aware that this may be a complex issue that may not be resolved same day.
h. Monthly Transaction Journal (15-22)
This contains the beginning balance, all current month transactions and the ending balance for each Balance Sheet and P&L account in the General Ledger. Make sure a copy is printed or saved to file for all General Ledger Accounts for future reference.
i. Month End Closing (15-40)–Closes General Ledger
This step closes General Ledger for the month and moves the current profit/loss from all income statements to the Current Year to Date on the balance sheet–bringing your balance sheet into balance. Make sure that you have run all needed reports before continuing with this procedure.
If the General Ledger does not close, make a note of the exact message shown and refer to the work schedule for more information and troubleshooting procedures.
If troubleshooting does not resolve the issue, contact Tyler support for further steps. Please be prepared to provide the support department with the exact steps you have taken, exact error messages shown and copies of the balance sheet and consolidated income statement. Also please be aware that this may be a complex issue that may not be resolved same day.
j. Income Statement (15-24)
Print a copy of each individual Income Statement and any Consolidated Income Statements as desired.
k. Balance Sheet (15-23) – Final in Balance
Immediately after running Month End Closing (15-40), print the final balanced Balance Sheet and keep for future reference. Enter a “P” for prior month.
This will now show the Balance Sheet in balance. The Profit/(Loss) figure will have been interfaced to the Current Year Profit/(Loss) account by closing the month.
14. Filing Suggestions
- Establish a manual or PDF file folder for each month and file all source documents relating to the closing in the appropriate folder.
- Retain all copies of the Journal Entries and file with the General Ledger for that month.
- Set up a manual or PDF for the General Ledger only of each month’s printouts in the folder. This allows access to original financials per month when needed.
15. Utilities
Stand Alone Clients, follow these procedures.
1. Error File Report (34-80-01)
- Print the Error Report for the current month you are closing, for all partitions.
- This may be printed to paper or PDF to email support@tylernet.com attention Director of Quality Control.
- Answer YES to Clear File After Print?
- Send the report to Tyler Net, Inc. c/o Director of Quality Control.