Activant Prophet 21

Perfecting Your Month and Year End Closing Routines

This class is designed for…

System AdministratorsOperation ManagersAccounting Managers

Objectives

Suggested month end and year end procedures

This course will NOT cover…

System SettingsTransactions in the system Performing Inventory Counts Creating Financial Reports

Remember!

Prophet 21 is a real time system Approved transactions are posted to the General Ledger as they are saved in the systemNo need to perform “Batch” processes

Approved Transactions

Approvals are a system setting

Approval Settings

Journals

All Transactions are posted to specific journalsGeneral Ledger > Inquire > GL Drill Down

Postings

System posts by period and year indicated, NOT date

Update Forecast Usage

Update Forecast Usage

MUST BE RUN ON LIVE DATABASEAfter close of business on the last dayBefore any transactions on the first day

Update Forecast Usage

Update Forecast Usage

Item History

Calculates the anticipated demand for itemsUsed in UPTO and EOQ

Forecast usage is used in UPTO and EOQ calculations

Accounting Database

Create a backup of your live databaseUse this database to run the reports that do not go back in time Allows more time to balance

Accounting Database

The following programs should be run from the Accounting Database

Inventory Value ReportUnvouchered PO, Landed Cost and Requisition ReportsPayment Summary ReportOpen RMA Report

What to Check - The Big 4

AP Trial Balance to the General LedgerAR Trial Balance to the General LedgerInventory Value Report to the inventory accountsUnvouchered PO, Landed Cost and Requisition PO Reports to the General Ledger

Accounts Payable

Transactions that affect Accounts Payable:Convert PO to VoucherConvert Inventory Return to VoucherVoucher Entry by Amount / Item (Manual Voucher)Reverse VouchersCredit/Debit MemosPrepay VoucherConvert Landed Cost to Voucher

Balance Accounts Payable

Balance AP general ledger account to the AP Aging reportAccounts Payable > Reports > AP Trial Balance

Balance Accounts Payable

Print for period and year being balanced

The AP Aged

Trial Balance

Report can be

printed for past

periods.

Balance Accounts Payable

Troubleshooting DiscrepanciesGo back in periods to determine when you did tie out

If you have never been in balance, including when you went live on the system, there may have been a problem with the beginning balances

When AP Trial Balance Does Not Tie to the GL

An expense account is listed in the AP Account field in Vendor MaintenanceAP account is listed in the Purchase Account in Vendor MaintenanceDebit and credit to AP in the same transactionAP account is selected when entering in a manual voucherJournal entry to AP

Balance Accounts Payable

Verify that the AP account assigned to each vendor is correct

Accounts Payable > Maintenance > Vendor Maintenance > Vendor tabThis can be done through a SQL Statement or Fast Edit

Software Support Solution #3259This solution contains SQL statements that can help in problem-solving any discrepancies

Troubleshooting Techniques (AP)

Run the Distribution Journal in AP (Reports > Journals > Distributions)

Select the AP account, period, and year

This will show all transactions where AP was used as the distribution account

Troubleshooting Techniques (AP)

Look for general journal entries in the AP accountCompare the purchase journal and cash disbursements journal totals in the General Ledger to the journals printed through AP

Post Recurring Vouchers

Did you set up recurring entries? Post recurring entries at the end of the monthAccounts Payable > Transaction > Post Recurring Vouchers

Post Recurring Vouchers

Save window for vouchers to be created

Balance Accounts Receivables

Balance general ledger AR balance to the AR Aging report Accounts Receivable > Reports > Aged Trial Balance

Balance Accounts Receivables

Report can be printed for past periods

Accounts Receivable

Transactions that affect AR: Shipping ConfirmationRMA ReceiptsInvoice by Item / AmountCredit / Debit MemosBad Debt Write-OffsBad Debt RecoveryDirect Ship ConfirmationsCash Receipts

Balance Accounts Receivable

Troubleshooting DiscrepanciesGo back in periods to determine when you did tie out

Out of balance – often due to go-live importCheck the General Ledger Journal

Sales Journal Cash receipts

Balance Accounts Receivable

Verify that the AR account assigned to each customer is correct

Accounts Receivable > Maintenance > Customer Maintenance > AccountsThis can be done through a SQL statement or Fast Edit

Software Support Solution #2293This solution contains SQL statements that can help in problem-solving discrepancies

Troubleshooting Techniques

Print a Distribution Journal in AR using the AR account

This will show invoices where the AR account was selected as the distribution account on an invoice

AR account is used as a revenue accountDebit/Credit memosBad debt write offs

Balance Accounts Receivable

All Cash Drawers should be closed

Payment Summary Report

This report should balance to the Deferred Revenue Account

Payment summary Report

Open RMA Report

Open RMA Report

Finance Charges

Do you generate Finance Charges?

Customer Statements

Do you generate statements?

Balance Inventory

Balance Inventory general ledger accounts to the Inventory Value Report

Inventory / Reports

Balance Inventory

This report displays current info only – you cannot view information for past periods of time

Balance Inventory

Check the Journals associated with Inventory postings

Inventory AdjustmentsInventory Receipts Inventory ReturnInventory Cost Sales Purchases

Variance in Convert PO to Voucher (System setting)

Balance Inventory

Run the Distribution Journal in APEnter the inventory account, period, and year

This will show any vouchers that were entered with the inventory account as the offsetting account

Inventory Does Not Tie to GL

Inventory account is used as the purchase account on a manual voucherJournal entry to inventoryInventory account is listed in Adjustment Reason MaintenanceEdit inventory cost used the inventory account as the offset account

Inventory Does Not Tie to GL

Check Item DefaultsInventory account should be entered on the Accounts Info tab

Do you track inventory by product group?Check the inventory account is correct.

Was it a go-live issue? Software Support Solution #5206

Inventory Troubleshooting Techniques

Query on Adjustment Reason Maintenance Verify that inventory account is not tied to a reason codeCheck vendor record to verify the inventory account is not listed as a purchase accountVerify that the correct inventory account is listed in the asset field in Item Maintenance

Use fast edit

Inventory Value for “S” Disposition Items

If you are using special costing for “S”disposition items be sure to use a separate account for those itemsThe special cost of the inventory translates into a special cost of goods when the inventory is soldIf the inventory is not sold (customer cancels the order or wants less than ordered), the value of the “S” disposition item updates FIFO or MAC

Regular inventory account is debited and the special inventory account is credited

Inventory in Vessel and Container

ContainerDebit: inventory asset account assigned to the item (inventory in vessel value plus landed cost with an application point of container receipts)Debit: inventory in transitCredit: inventory in vesselCredit: landed cost clearing

Vessel Debit: inventory in vessel account (material value plus landed cost)Credit: inventory in transitCredit: landed cost clearing

Inventory Rebuild

OptionalRecalculate inventory quantitiesPerform when no one is on the system

Inventory Rebuild

Inventory Rebuild

Save will update item quantities (remember, not all items can be updated via save)Some items will have to be manually fixed

Items that track bins, lots or serial numbers

Report will provide details of the item and the differences.

Will not provide transaction numbers

Balance Unvouchered POs

Material Receipts that have not been converted to a PayableBalance the Unvouchered PO Report to the Inventory Receipts Clearing accountBalance the Unvouchered Requisition PO Report to the Requisition Clearing AccountBalance the Unvouchered Landed Cost Report to the Landed Cost Clearing Account

Clearing accounts are setup in System Setup > System > Company Maintenance > Inventory tab

Inventory Receipts Clearing

The following transactions affect the Inventory Receipts Clearing account:

PO ReceiptsConvert PO to VoucherInventory Return ShippingConvert Inventory Return to VoucherReverse VouchersDirect Shipments

Balance Unvouchered POs

General Ledger PostingsMaterial Receipt

Account ImpactInventory Debit

Inventory Receipts Clearing Account

Credit

Balance Unvouchered POs

General Ledger PostingsConvert PO to Voucher

Account ImpactAccounts Payable Credit

Inventory Receipts Clearing Account

Debit

Balance Unvouchered POs

Include Unvouchered Inventory Returns

Balance Unvouchered POs

Accounts Payable > Reports > Unvouchered PO ReportCANNOT go back in time with this report

Balance Unvouchered POs

General Ledger PostingsCreate Inventory Return

Account Impact

Inventory CreditInventory Receipts Clearing Account

Debit

Balance Unvouchered POs

General Ledger PostingsConvert Inventory Return to Voucher

Account Impact

Accounts Payable DebitInventory Receipts Clearing Account

Credit

Unvouchered PO Report Compared to GL

# 1 Reason why the Unvouchered PO Report does not tie to GL is reversed vouchers that are reenteredThe inventory receipts clearing account is never cleaned up when reversing a voucherReport needs to be run at month end on the accounting database (backup of live)

Removing Unvouchered POs

Vouch at 0 quantityAmount will post to the quantity variance accountYou may need to journal the quantity variance to another accountSoftware Support Solution #13775

Landed Cost

Account Impact

Inventory Asset DebitLanded Cost Clearing Account

Credit

When PO is received with Landed Cost

Unvouchered Landed Cost

Reconcile Bank Statement

Bank Reconciliation Worksheet

Reconcile Bank Statement

Bank Reconciliation Worksheet

Reconcile Bank Statement

Reconcile Bank Statement

Reconcile Bank statement

Reconcile Cash

Reconcile Cash Detail

Reconcile Disbursements

Reconcile checks from bank statement

Reconcile Disbursements

Reconcile Disbursements

Accounts Payable > Reports > Outstanding Disbursements

Reconcile Deposits

Print all deposit slips for the monthAccounts Receivable/Reports/Deposit Slips

Reconcile Cash

Default = Year/Month/day – Bank Number – Lockbox #

Reconcile Cash

Was it a go-live issue? Software Support Solution #5206

Check your Sales

Check your Sales Taxes

Accounts Receivable > Reports > Sales Tax

Sales Tax

Sales Tax

Totals do NOT represent total sales for the month

Helpful Reports

Unconfirmed Pick Ticket ReportThese possibly could be invoiced

Order Line Item DetailCheck orders past their required date

Open OrdersCheck any orders on hold

Open RMA ReportExpired RMA’s could be canceled

Helpful Reports

Open PO ReportExpedite or cancel

Inactive Item ReportDo we have stock in those items?

Ship-to Fast EditFind customers without tax groups

General Ledger Postings

Payroll, Insurance….

Post Repetitive Journal Entries

Review entry, make necessary changes, then save to post

Trial Balance Out of Balance

Make sure no prior years are openReopen to the open year and close againRun the Trial Balance, if still out of balance you may need to rebuild GL balances

GL Postings – Accounts Receivable

Bad Debt Write Off: Dr: revenue (account is pulled from Customer Maintenance)Cr: AR

Bad Debt Recovery (also works the same as a Debit Memo in AR):

Dr: ARCr: revenue

Run Financials

Setup involved We have canned Chart of Accounts and Financial Statements

Closing a Month

It is not mandatory to close the month until the year close

Closing a Month

Always keep Period 13 closed

Closing a Month

Can NOT post to closed periodsPeriods can be reopened and closed

At any timeAs many times as needed

Closing a Year

All periods must be closed

A year can be closed at any time.

Closing a Year

System automatically calculates retained earnings

Posted to period 13

Retained earnings posted each time a year is closed

Create New Fiscal Year

Create New Demand Year

Create new Demand Year? May be on calendar when you are on fiscal

Create New Demand Year

Summary

Balancing AP and ARBalancing InventoryMonth End ReportsClosing a Month and YearCreating a new Fiscal and Demand Year

For More Information…

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