GL – EOM Detail in terms of Rolling Ledger Periods
This guide is built off the guide “GL - Understanding the Ledger Status & how to roll the Periods (Months) for each Ledger”. This is purely to explain your End of Month Process (EOM) in terms of rolling the periods.
The 4 ledgers are & the order in which they should be rolled are:
Basically, the general rule for when to roll each ledger period/month would be the below:
Note: The Inventory & Accounts Receivable periods need to be rolled a lot earlier than the other 2.
For Inventory, make sure to run the INV04 Inventory Valuation Report in Cognos ideally before the roll (see guide on generating & saving this report). The Inventory needs to be rolled before the start of the next month’s trading. So roll this on the night of the End of the Month (for example the night of 30/4/2021 or the 31/5/2021) or first thing in the morning before trading commences. Ideally the night of the end of the month!
For Accounts Receivable, this should be done after you have an up to date Bank Rec & you have completed it for the last day of the month as well as after you have run & sent out the Customer Statements.
In an ideal world, reconcile the Bank Rec for the last day of the month on the 1st day of the next month & then run the customer statements in the morning/arvo of the 1st of the month (or 1st trading day of the month) & then roll the Accounts Receivable period the same day after they have been sent out. If you can’t do this until the 3rd or 4th for example then that’s ok but better to be up to date and prepared to do it on the 1st or 2nd day of the month.
For Accounts Payable, this would likely be done once you have got all the previous month’s/period’s AP invoices done, which may take until the 15th-20th of the month. You can leave this open longer if you like but I’d suggest trying to get all your AP invoices in & rolling after that is done. Anywhere between the 7th & 21st of the next month is probably ideal. HOWEVER, if this is a GST Quarter (for example the date is April 20th & we still haven’t done GST for the January to March quarter. DON’T roll the AP period until you have done your GST & done the GST Invoice in the system for 31/3/2021.
Once the GST is done you should be fine to roll the AP period into the new month (APRIL in this example).
For General Ledger, this is definitely the last one to roll. Make sure the other 3 are rolled for that particular month/period before you roll the GL. This one can be left open for a fair while but I’d suggest rolling it near the end of the next month (roll March into April when you are near the end of April & AP has been rolled).
For EOFY, do not roll June until all your accounts have been finalised by your Accountant and your journals have been done. You may need to leave June open when you are in that December as your accounts may not be finalised yet.
Once you are able to roll, you can then roll the GL periods to catch up to where you are in the year (aslong as the other 3 have been rolled for all the periods you intend to roll the GL).
To see how to roll the periods please access the guide “GL - Understanding the Ledger Status & how to roll the Periods (Months) for each Ledger”.