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Using AP and AR Period Close Processes
It is recommended
that companies use the AP Period Close and AR Period Close processes
in Sage PFW. These processors are found in the ‘Utilities’
submenu of both AP and AR in Sage PFW.
The running of these processes at the conclusion of each Period
will lead to having ‘cleaner’ and more efficient Current
Transaction files in AP and AR. The main reason for this is that
the AP and AR Month-End processors move all ‘closed’
transactions to the AP and AR Historical Transaction files.
If these month-end processors are not run, the closed transactions
will remain in the Current Transaction files that will become
increasingly larger as time goes on, a situation that can lead
to inefficient processing during daily or period-end activity.
In addition, not running these processors, will lead to incorrect
values accumulating in the Vendor and Customer Activity Files
that maintain Period-To Date and Year-To-Date summary totals by
Vendor and Customer.
1) AP
Period End Closing
The following describes the AP Period Closing process:
After the Distribution to General Ledger has been run and interfaced
to GL and AP has been reconciled, the AP Period End Close utility
should be run.
The AP
Period End Close utility does the following:
All fully paid vouchers move from the Transaction Current (APTRAN)
to the Transaction History (APTRANH) file. The debit memos, adjustments,
and payments transactions associated with the voucher are also
moved to the Transaction History file. In addition the Period-To-Date
and Year-To-Date fields in the Vendor Activity File (APVENDH)
are updated.
The Last Period End Close Date is updated (APONE). The update
to this Date will allow companies
To use the ‘Require Posting in Current Period’ feature
(see screen shot below).
Require Posting in Current Period
Select this field to force posting in the current period only
for all vouchers entered in Voucher Entry. If you select this
field, a voucher, entered in Voucher Entry, cannot be saved with
the receipt and Age Date earlier than the first day of the AP
current period. In Voucher Entry, if a user tries to save a voucher,
a message allowing them to accept the first day of the current
period or to manually adjust the receipt and Age Date will be
displayed. The first day of the current period is one day after
the Last Closing date in the Auto Number Setup menu item. This
latter field is updated when the AP Period Close is run at Period
End.
If
the 'Require Posting in Current Period' is not selected then you
can enter an Age Date prior to the current date. This lets you
enter a voucher into a prior period.
2)
AR Period End Closing
The following describes the AR Period Closing process.
After
the Distribution to General Ledger has been run and interfaced
to GL and AR has been reconciled, the AR Period End Close utility
should be run.
The AR Period End Close utility does the following:
All fully paid invoices move from the Transaction Current (ARTRAN)
to the Transaction History (ARTRANH) file. The credit memos, adjustments,
and cash receipts transactions associated with the invoices also
move to the Transaction History file. In addition the Period-To-Date
and Year-To-Date fields in the Customer Activity File (ARCUSTH)
are updated.
The
Last Period End Close Date is updated (ARONE).
New
AR Feature in Sage PFW5.7:
Some companies have intentionally not run the AR Period Close
process because they wished to have a means to run 'Historical'
AR Aged Receivables reports and could not do this if the 'closed'
transactions had been moved to the AR History Transactions file
by the AR Period End Processor. This situation
Has been addressed with a new feature now available in Sage PFW5.7,
described below:
Historical AR Aged Receivables Report:
Get the information you need on your aged receivables. The new
Historical Receivables report allows you to view aged receivables
information as of the date you specify. When you close a period
in Sage PFW, paid invoices are moved to a history file, which,
until Sage PFW5.7, had prevented you from running the Aged Receivables
report for a previous period. Also, Sage PFW5.7 now optionally
allows you to post to a previous period. This new report allows
you to view your receivables as of the specified period end date.
The new report does not affect the system's aging brackets. Now
you can close your period and still have the information you need
for auditing purposes
- Nonny Beckerman
- Senior Consultant, Evron Computer Systems Corp.
Past
Newsletter Archive:
March 2009
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