Month end close process

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  • Updated 3 years ago
Hello...we are trying to introduce a month end close process with Reckon Accounts Premier.
I understand there is the 'set close date' button in the preferences, perfect for when you have completed your BAS & nothing else can affect the numbers.
However...for example, we want to close this week (7/4), all transactions processed up to this date will be in March.  Then I can close the accounts. However, I want to be able to process my supplier invoices with a March date (that affects payment terms) but into the April P&L.
How? At the moment if we are closed we can then process a March invoice, but it will post back into March as I understand it - I don't want that happening, I want the correct transaction date - posted into the next month.

hopefully someone doing some 'sophisticated' Reckon month end reporting could help me out?? I'm very keen to hear from anyone doing such reporting...

thanks!
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Tamara

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Posted 3 years ago

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Kevin Russell, Accredited Partner

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I dont like your chances. Its not really the way the system is designed to work. Its not the way the tax regs work either. The date of the invoice isnt a moveable feast
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John Graetz

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Tamara.  I gather from the way that you are talking, that you use accrual accounting.  On that basis, your only perceivable option is to date that supplier invoice from the previous month with say the first day of the next month and adjust the date on which payment is dye.  If you are using accrual accounting and do this, you are also then deferring the ability to claim back the GST on that transaction by a month.
Whilst it is your business as to why you want to effect this early close off, it doesn't make much sense to me because you are actually presenting a false picture which does not reflect reality.
John L G
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DebonAir

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If you run your P&L in Cash reporting instead of Accrual reporting you mgiht get the result you are looking for. But to close off March for your BAS, you really need to have all of the invoices in before closing. Otherwise enter the late bills in with the date of 1st April.
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Kevin Russell, Accredited Partner

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John its also doubtful if its even legal. That would be my biggest concern. Well apart from the false reporting.
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DebonAir

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Yes, isn't that called 'creative accounting'!
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Kevin Russell, Accredited Partner

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I take my BAS agent registration a little too seriously Deb
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DebonAir

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Yes, I was not referring to your work, but the bad practice that might evolve from the original question.
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Tamara

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Thanks everyone.  Companies would always 'close the books' before everything is received in the following month.  Generally they would accrue costs that reverse the next month the invoices are received.  Timing issues.
Any other feedback would be most welcome