OUR SPONSORS GOLD LEVEL. Justin Wirpel, Principal. SILVER LEVEL Tod Greenberg. Vincent Virga, CEO & Founder

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1 MONTH END ERRM

2 GOLD LEVEL OUR SPONSORS Justin Wirpel, Principal SILVER LEVEL Tod Greenberg Vincent Virga, CEO & Founder Mohawkflooring.com ASK-MOHAWK Keshia Pack, ecommerce Business Solutions Manager BRONZE LEVEL Austin Ojukwu, President & CEO Floor Sight Phone: (800) Fax: (813) Greg Gubrud PayLEX Financial Services RFMS Credit Card Services ONTOP Systems, Inc : Main : Cell 2

3 Overview Following a standardized list of month end closing procedures will facilitate the end of month closing process in RFMS. Smart businesses owners want to generate accurate financial statements as quickly as possible at the end of each month so they can get a report card for their business. Areas to be covered include bank reconciliations, inventory costing, review of open orders for job costing, posting of expense payables, updating inventory receipts and key reports. Utilization of the RFMS General Ledger allows you to get a complete picture of your company s financial well-being. The general ledger and journal allow you to generate customizable income statements, balance sheets, and trial balances. Prerequisites RFMS is being used completely from Order Entry, Purchase Orders, jobcosting of orders, Accounts Payable, and check writing. o All vendor merchandise and expense invoices are entered o All open jobs have been reviewed and jobcosted as needed o Bank statements are reconciled to the RFMS GL bank balance o Monthly sales/use tax report is finalized Class Outline Preparing for Month End General ledger dates Perform journal close o Balance the core ERRM accounts in RFMS to subsidiary reports o Review batch and recurring journal entries General Ledger Reporting Disclaimer RFMS is acting solely in a training capacity when assisting a client with data entry functions like entering a manual journal entry, reconciling a general ledger account, updating tax tables, etc. RFMS is not providing any tax or financial advice. All Sales Tax Rates and Methods should be discussed with your Accountant and/or Taxing Authority. Preparing for Month End Prior to closing the journal in RFMS there are several key procedures to be performed. o Post all deposits for month to be closed to the bank account(s) o All open jobs have been reviewed and job costed as needed Run the Open Orders report or the Orders/Quotes w/ Profit Report for only Undelivered sales. o Bank statements are reconciled to the RFMS GL bank balance o Monthly sales/use tax reports are finalized o Post all vendor invoices dated for the month you are closing. o Receive all material delivered in month to be closed 3

4 General Ledger Dates This option allows users to easily view their last journal and general ledger close dates. Accounting, File, General Ledger, GL Dates. Closing the Journal Accounting, File, General Ledger, General Ledger Functions, Choose Journal Close 4

5 o Verify Month you are closing in upper left hand o Enter in sales tax liability o Select to Include Inventory Adjustments o OPTIONAL Subaccount Inventory o After running the Preliminary Close procedure, print the Trial Balance and save to PDF o Minimally print journal for Core ERRM accounts AR Inventory Accrued Inventory Accrued labor Unbilled AR WIP Material WIP Material Percent Billed WIP Labor WIP Labor Percent Billed Booked Not Job costed Sales Income Cost of Material Save the Journal Close 5

6 Print Month End Reports Month End Reports are printed from Accounting>File>Month End and other Subsidiary/Modules a. Check Registers: Accounting>File>Banking>Add/Edit Checks i. Printer>Change dates to month you are reconciling b. Month End A/R and Customer Deposits Report: Accounting>File>Month End>A/R i. Select AR Report and Customer Deposits Reports>Select Date>Print c. Month End A/P Report: Accounting>File>Month End>A/P Report i. Supplier Open only>select Date>Print d. Month End Accrued Inventory: Accounting>File>Month End>Accrued Inventory e. Month End Accrued Labor: Accounting>File>Month End>Accrued Labor f. Month End Unbilled AR: Accounting>File>Month End>Unbilled AR g. WIP Material: Accounting>File>Month End>WIP Material h. WIP Material Percent Billed: Accounting>File>Month End>WIP Material Percent Billed i. WIP Labor: Accounting>File>Month End>WIP Labor j. WIP Labor Percent Billed: Accounting>File>Month End>WIP Labor Percent Billed k. Month End Inventory Report: Accounting>File>Month End>Month End Inventory Report l. Month End Booked Not Job Costed: Accounting>File>Month End>Booked Not Job Costed m. Job Cost Analysis Report: Sales Reports>File>Profitability>Job Cost Analysis>Run the Job Cost Summary report including adjustments for the month reconciling. 6

7 Compare the journal ending balance numbers to the report numbers: Balance Amount Difference Compare journal to Bank Accounts Cash in Bank Journal Ending Balance Compare journal to Accounts Receivable Month End AR Report Journal Ending Balance Compare journal to Accounts Payable Month End AP Report Journal Ending Balance Compare journal to Accrued Inventory Month End Accrued Inventory Journal Ending Balance Compare journal to Accrued Labor Month End Accrued Labor Journal Ending Balance Compare journal to Unbilled AR Month End Unbilled AR Journal Ending Balance Compare journal to WIP Material Month End WIP Material Journal Ending Balance Compare journal to WIP Material % Billed Month End WIP Material % Billed Journal Ending Balance Compare journal to WIP Labor Month End WIP Labor Journal Ending Balance Compare journal to WIP Labor % Billed Month End WIP Labor % Billed Journal Ending Balance Compare journal to Customer Deposits Ending Balance Month End Customer Deposits Journal Ending Balance Compare journal to Inventory Value Report Ending Balance Month End Inventory Bal Report Journal Ending Balance Compare journal to Booked Not Job Costed Month End Booked Not Job Costed Journal Ending Balance Compare Sales to the Job Cost Analysis Invoice Total JC Analysis Invoice Total Journal Credit Amount Compare cost of materials debits to the Job Cost Analysis Gross Material column JC Analysis Material Cost Journal Debit Amount 7

8 After the Journal Close It is recommended that all general ledger accounts be reviewed for accuracy. In particular, Balance Sheet accounts should be reconciled and adjusted as necessary. This may be an in-house accounting responsibility or the responsibility of your CPA. Consult your CPA to determine if there are accounts you should be reconciling. Financial Reporting Several reports can be generated out of RFMS to indicate the performance of the business. These reports can be accessed from the Accounting module, File, General Ledger, General Ledger Functions. Note that these are only accurate for months where the journal has been closed. Below is a list of the report. o Journal select stores, dates, and account code(s) to see individual debits/credits in each account. Options Print batch entries only shows only user input batch entries. Print beginning balances shows the balance at the beginning of each month for each account code(s) o Trial Balance select month and stores to view a summary of total debits/credits for each account code. o Balance Sheet select month and stores to view a balance sheet showing the assets and liabilities for the company. o Statement of Income select month and stores to view the income statements for the store(s). Single Month current month and YTD totals Current Month/Previous Month current month, this month last year, YTD totals for this year and YTD totals for last year Six Months at a Glance Legal size report showing 6 months together and YTD totals Twelve Months at a Glance - Legal size report showing 12 months together and YTD totals Customized Income Statements -Allows you to customize your Statement of Income report by selecting specific account codes from the Chart of Accounts. Using this feature, you are able to create a personalized report that allows you to view items from the General Ledger in a variety of different ways. (Accounting module, File, General Ledger, Utilities, Customized G/L Print to add the configuration). 8

9 RFMS JOURNAL CLOSING CHECKLIST MONTH ENDING 20 On Last Day of Month To Be Closed Balance Petty Cash by cutting check to cash, coded to the receipts to bring petty cash back to balance Deposit all outstanding checks and cash and credit card transactions First Week of Next Month Reconcile Checkbook with the bank statement Ensure all outstanding AP for month to be closed are entered Ensure all outstanding Jobcosting for month to be closed are entered Run report of prior month s inventory adjustments. Inventory Reports Inventory Adjustments Report for the date of the month to be closed. Review the report and look for false adjustments. Delete any adjustments which were not true gains/loss/devalue/increased value to inventory. At Journal Closing Time (usually the 10 th -20 th of the next month) 1. Accounting - File General Ledger General Ledger Functions Journal Close - Preliminary Close Journal, enter sales tax liability, and include inventory adjustments 2. Print journal for select account codes (Bank, AP, AR, Customer Deposits, Sales, Cost of Goods Sold, and Inventory). 3. Print Preliminary Trial Balance 4. Save journal close 5. Print the following reports a. Check Registers: Accounting>File>Banking>Add/Edit Checks Printer>Change dates to month you are reconciling b. Month End A/R and Customer Deposits Report: Accounting>File>Month End>A/R Select AR Report and Customer Deposits Reports>Select Date>Print c. Month End A/P Report: Accounting>File>Month End>A/P Report Supplier Open only>select Date>Print d. Month End Accrued Inventory: Accounting>File>Month End>Accrued Inventory e. Month End Accrued Labor: Accounting>File>Month End>Accrued Labor f. Month End Unbilled AR: Accounting>File>Month End>Unbilled AR g. WIP Material: Accounting>File>Month End>WIP Material h. WIP Material Percent Billed: Accounting>File>Month End>WIP Material Percent Billed i. WIP Labor: Accounting>File>Month End>WIP Labor j. WIP Labor Percent Billed: Accounting>File>Month End>WIP Labor Percent Billed k. Month End Inventory Report: Accounting>File>Month End>Month End Inventory Report l. Month End Booked Not Job Costed: Accounting>File>Month End>Booked Not Job Costed m. Job Cost Analysis Report: Sales Reports>File>Profitability>Job Cost Analysis>Run the Job Cost Summary report including adjustments for the month reconciling. 6. Compare the journal numbers to the report numbers by using chart below. Balance Amounts Compare journal to Bank Accounts Cash in Bank Journal Ending Balance Compare journal to Accounts Receivable Month End AR Report Journal Ending Balance Difference Compare journal to Accounts Payable Month End AP Report Journal Ending Balance Compare journal to Accrued Inventory Month End Accrued Inventory 9

10 Journal Ending Balance Compare journal to Accrued Labor Month End Accrued Labor Journal Ending Balance Compare journal to Unbilled AR Month End Unbilled AR Journal Ending Balance Compare journal to WIP Material Month End WIP Material Journal Ending Balance Compare journal to WIP Material % Billed Month End WIP Material % Billed Journal Ending Balance Compare journal to WIP Labor Month End WIP Labor Journal Ending Balance Compare journal to WIP Labor % Billed Month End WIP Labor % Billed Journal Ending Balance Compare journal to Customer Deposits Ending Balance Month End Customer Deposits Journal Ending Balance Compare journal to Inventory Value Report Ending Balance Month End Inventory Bal Report Journal Ending Balance Compare journal to Booked Not Job Costed Month End Booked Not Job Costed Journal Ending Balance Compare Sales to the Job Cost Analysis Invoice Total JC Analysis Invoice Total Journal Credit Amount Compare cost of materials debits to the Job Cost Analysis Gross Material column JC Analysis Material Cost Journal Debit Amount 10

11 Optional steps These steps are optional and are recommended to reconcile these accounts in addition to the RFMS core accounts. Compare Assets to Depreciation Schedule/Balance Sheet (i.e. Furniture, Autos, Displays, etc.), Accrued Wages and Commissions, Prepaid Expenses, Jobs in Progress, Notes Receivable, Note Payable, Depreciation Expense Helpful Links for Month End on RFMS Link for Sales Taxhttps://rfmsinc.zendesk.com/hc/en-us/articles/ System-Option-Setup-Sales-Tax-Accounting Link for GL postings - Link for Balance the GLhttps://rfmsinc.zendesk.com/hc/en-us/articles/ Balancing-the-General-Ledger Link for Month End checklisthttps://rfmsinc.zendesk.com/hc/en-us/articles/ month-end-journal-closing-checklist Link for Sales Tax postingshttps://rfmsinc.zendesk.com/hc/en-us/articles/ balancing-the-general-ledger 11

12 Checking Accounts Subsidiary/Module Checking Account 12

13 Accounts Receivable Subsidiary/Month End 13

14 A/R Unbilled Subsidiary/Month End 14

15 Receipts Not Deposit Subsidiary Accounting>File>Banking>View Outstanding Receipts 15

16 Mill Claims Due Subsidiary/Month End AR (Print AR/Claims only) 16

17 Inventory Subsidiary/Month End Report Last page of Inventory Balance Report 17

18 Inventory Uncosted Subsidiary/Month End 18

19 WIP Material Subsidiary/Month End 19

20 WIP % Billing Material Subsidiary/Month End 20

21 WIP Labor Subsidiary/Month End Accounts Payables Subsidiary/Month End Report 21

22 Customer Deposits Subsidiary/Month End Report Discount amount plus Customer Deposit 22

23 Accrued Inventory Subsidiary/Month End Report 23

24 Accrued Labor Subsidiary/Month End Report Sales Income Subsidiary/Month End Credit column 24

25 Claims in Process Subsidiary/Month End Cost of Material Subsidiary/Month End Debit Column 25

26 Cost of Claims Subsidiary/Month End 26

27 Check list for Month End All vendor merchandise and expense invoices are entered All Providers have been posted to jobs All Customer Deposits have been posted to banking Order Entry>Reports>Receipt Recap All open jobs have been reviewed Sales Reports>File>Sales>Open Orders Do Batch Job Costing Order Entry>Reports>Batch Job Costing Bank statements are reconciled Accounting>File>Banking>Reconcile Registers Reports to print for Month End Open Orders Report: Sales Reports>File>Sales>Open Orders Print per sales person week of last month and give to Sales to let you know what the status is on all the jobs. Check Registers: Accounting>File>Banking >Add/Edit Checks Choose Printer>Change dates to current month>choose Print Month End A/R and Customer Deposits Report: Accounting>File>Month End>Month End AR Change date>select AR>And also select>customer Deposits Reports>Choose Print Month End A/P Report: Change date>by Supplier Open Only for current month>choose Print 27

28 Month End Inventory Report: Accounting>File>Month End>Month End Inventory Report>Change date>only print the very last page of this report Job Cost Analysis Report: Sales Reports>File>Profitability>Job Cost Analysis Change dates>choose summary only>choose Print Accrued Inventory: Accounting>File>Month End>Accrued Inventory> Change date>choose Sort Options Accrued Labor: Accounting>File>Month End>Accrued Labor> Change dates to current month>choose Print Unbilled AR: Accounting>File>Month End>Unbilled A/R> Change date>choose Print WIP Material: Accounting>File>Month End>WIP Material> Change date>choose Print WIP Material Percent Billed: Accounting>File>Month End>Material Percent Billed Change date>choose Print WIP Labor: Accounting>File>Month End>WIP Labor Change date>choose Print WIP Labor Percent Billed: Accounting>File>Month End>WIP Labor 28

29 Closing the Month Accounting>File>General Ledger>General Ledger Functions Click Journal Close>Verify Month>Click Preliminary Journal Close Click OK- Once the process is done Print the reports Print Journal information>tag all COA>Save file to pdf Print Preliminary Trial Balance>Save file to pdf Save the Journal Close Sales Tax Reports Accounting>File>Month End>Tax Reports Print & Post Tax Due Month Taxes are Due this should be the previous month Tag stores and subtotal by state and county if needed Go to AP and create payable for taxes for each state if necessary. * never pay or post anything different than what the report shows* Reconcile Month End Reports to Trial Balance Compare the amounts on the Trial Balance to the Month End Reports Banking ending balance on both reports should match Accounts Receivable ending balance on both reports should match Customer Deposit ending balance on both reports should match Accounts Payable ending balance on both reports should match Accrued Inventory ending balance on both reports should match 29

30 Accrued Labor ending balance on both reports should match Unbilled AR ending balance on both reports should match WIP Material ending balance on both reports should match WIP Material % Billed ending balance on both reports should match WIP Labor ending balance on both reports should match WIP Labor % Billed ending balance on both reports should match Booked Not Job Costed ending balance on both reports should match Inventory ending balance on both reports should be at least within 5% Sales Income Credit should match the Invoice total on Job Cost Report Material Cost Debit should match the Material cost on Job Cost Report How to save reports No printing required- Save reports to PDF or CSV Create a File Folder for Month End Reports Save document to PDF format: From print preview>file>save as PDF>save the file to your folder Print documents using PDF Printer: Choose the print option. System will not print the document, it will ask you to save the file in a location Print documents to CSV Format: Before you print your report be sure to select Output CSV to: Give the file a name and must end in.csv You may also save to your local computer using your path to the area you would like to save the document. Example: c:\users\username\desktop\2016_01_tb.csv 30

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32 All Materials are the property of RFMS, Inc. and may not be reproduced without permission. 32