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How to Complete (Step by Step) a Month End Closing in Sage X3
The monthly accounting and bookkeeping closing process is important because it provides management with vital financial information. Also, month end closings are undertaken to close out the current posting period.
To ensure that users perform all the required activities before closing the month (period), you can develop a visual flow that assists the users to perform the activities in the required sequence by providing shortcut menus of various functions. For those fortunate to be working with Sage X3, please follow the steps below to close the month. Sage X3 is not your typical ERP solution. It’s a faster, simpler, and more flexible business management solution.
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Accounting Tasks
Go to Usage>Batch Server>Accounting tasks
Ensure that the ‘Journals on Hold’ column is always ‘0’
Any number of journals on hold will mean that they are not reflected in the G/L. To make it ‘0’, click the Run Now button, and after a few minutes, click Update to see that the ‘Journals on Hold’ turn to ‘0’.
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Shipment Validation
Open the Sales Delivery function. The user can check the records and validate the shipment, entry by entry.
Go to Sales>Deliveries>Shipment Validation to open the function for bulk validation of non-validated shipment entries.
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The entries validated are based on criteria you define in the Criteria section. For example, you can select to only validate entries between a range, date range and customer range.
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After defining the criteria, click OK to begin the process.
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Sales Invoice Validation
Open the Sales Invoice function. The user can check the records and post the invoice, entry by entry.
Go to Sales>Invoices>Invoice Validation to open the function for bulk posting of invoices.
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The entries validated are based on criteria you define in the Criteria section. For example, you can select to only Post invoices between a range and Date range. Credit Memos can also be Posted in this function by changing the ‘Type’
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After defining the criteria, click OK to begin the process. At the end of the process, the log report will show the invoices posted.
Open the Customer BP Invoice function. The user can check the records and Post the BP invoices, entry by entry.
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Purchase Invoice Validations
Open the Purchase Invoice function. The user can check the records and Post the invoices, entry by entry.
Go to Purchase>Invoices>Invoice Validation to open the function for bulk posting of invoices.
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The entries posted are based on criteria you define in the Criteria section. For example, you can select to only Post invoices between a range and Date range. Credit Memos can also be Posted in this function by changing the ‘Type’
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After defining the criteria, click OK to begin the process. At the end of the process, the Log report will show the invoices posted.
Open the Supplier BP Invoice function. The user can check the records and Post the BP invoices, entry by entry.
Mass Supplier Invoice Validation will open the same function for bulk posting of BP invoices.
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Bank Posting
Open the Bank Posting function for bulk posting of unposted Payments/Receipts
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The entries posted are based on criteria you define in the Criteria section. For example, you can select to only Post entries of Remittances, Paying Banks or Payments, or all of those.
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After defining the criteria, click OK to begin the process. At the end of the process, the Log report will show the entries posted.
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Bank Reconciliation
When all the required Bank Entries are posted, only then can you move forward to Bank Reconciliation.
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Inventory Interface
Run the Stock Accounting Interface function
This will post all the Stock Movements to the G/L.
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Close Stock Period
Open the Fiscal Periods function.
In this step, the User needs to ensure they close the Stock for the period by change the Stock Status to ‘Closed’
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Work Order Status
Open WO Status to check the status of all Work Orders
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WIP Accounting Interface
Open the WIP Accounting Interface to post all WIPs to the G/L. Ensure to select ‘All Transactions’ for posting of all transactions in terms of Costing.
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Stock Valuation Report
Shortcut to the Stock Valuation Report
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Matching
Open the Matching function that automatically matches credits and debits (eg. Payments and Invoices) of the same ‘exact values
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The entries matched are based on criteria you define in the Criteria section. For example, you can select to only match entries of Account, BP and Date Ranges.
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After defining the criteria, click OK to begin the process. At the end of the process, the Log report will show the entries Matched.
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For un-matching of entries, use the function from Financials>Matching>Un-matching to manually un-match the matched entries.
Clicking Manual Matching will open the function that allows the user to manually match the entries as per the discretion. For Example – Matching a payment for Multiple Entries. This function is applicable for both A/P and A/R transactions.
When matching transactions, you can select all lines (double-clicking each line) that to match.
When lines are highlighted in ‘green’ this means that the entries are ‘Completely’ matched.
Click the ‘Matching’ button.
The Entries are now automatically marked with ‘Upper case’ character, to denote ‘Complete and Exact’ (i.e. debits equal credits) matching.
Lower case letters indicate transactions still have unapplied amounts to match.
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G/L Reversals
Open the GL Reversals function to reverse all the GL entries that were set to ‘To Reverse’ in the Journal entry.
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Journal Validation
Open the Final Validation function to batch validate all the GL entries from ‘Temporary’ to ‘Final’.
This step is critical to Month End closing, since, technically the Period cannot be Closed unless all the GL entries under the Period are validated to ‘Final’ Status.
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Close Period Readiness Report
Open the ‘Close Period Readiness Report’ that provides the status of all the entries in the period. It also shows the entries that are not validated, indicating them to be validated before Period Close.
Pre-Closing Report – sample:
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Period Close
Finally, after checking all the necessary activities, the Period can now be closed with no errors.
Open the Fiscal Periods function. Period can be closed by clicking the ‘Closing’ button at the bottom and then selecting the appropriate next period (tick the period).
Interested in learning more about Sage X3. Call us at 1-866-320-8922 and we’d be happy to help! In fact, we’ve been specializing in ERP/Accounting and CRM solutions, as well as a host of leading IT solutions & services, for over 20 years!
