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Monthly Processing Procedures at a Glance
Introduction
During each month, all batches entered for the month are posted to the general ledger and related subsidiary files. Financial reports and a variety of transaction listings are produced.
Most users find month end processing a largely mechanical activity since data to be processed has been entered and posted throughout the month.
Monthly Processing is divided into 4 sections each having its own menu and processing steps.
Timesheet Reports
General Ledger Listings
Cost Allocation
Financial Reports
This chapter will review all operating steps.
General Rules and Guidance
Although each GMS system will be somewhat unique with regard to the way it handles month end processing, there are some general rules and concepts which you should know and understand.
The posting period date approach to processing permits entry of accounting data and related processing (accounts payable, payroll) for the next month even if you have not closed the last month.
When you rerun a report for the current month, dispose of the first copy of the report printed so there is no confusion which is the most recent one. Having the Run Dates and Run Times on all the reports is very helpful when rerunning occurs.
There are very few instances where past months should be rerun since correcting adjustments are normally processed in the current month.
This Help file outlines the controls you should check as you proceed through the month end processing steps.
Before You Begin
Before you begin monthly processing, make sure:
Procedures At A Glance
Please pay particular attention to those steps marked –>. These are controls which should be checked before proceeding.
To begin processing you should:
Step #1 Timesheet Reports
This series of steps will produce reports analyzing current and year-to-date timesheet charges.
(1) Timesheet Charges by Activity
This report shows the labor distribution of all salaries, listing each employee under the program worked or type of leave taken. This report may be printed, displayed, or exported for the current month and/or agency fiscal year-to-date.
(2) Timesheet Charges by Employee
This report shows a listing by employee with the labor distribution of all salaries. This report may be printed, displayed, or exported.
Step #2 General Ledger Listings
This series of reports will produce various listings of monthly accounting transactions.
(1) Transaction Code Listing
This report lists all monthly accounting activity in order of GL code, date, batch type, batch # and document #. It may be printed, displayed, exported.
(2) Project/Element Charge Listing
This report details all revenue and non-salary direct expenses for the month. The report is sorted by GL code, date, batch type, and document # within each project/element. It may be printed, displayed, or exported.
(3) General Ledger with Current Detail
The General Ledger with Current Detail lists the fiscal year-to-date status of all agency accounts. The report is sorted by GL code, date, batch type, batch # and document #. It may be printed, displayed, or exported.
Step #3 Cost Allocation
(1) Leave Rate Computation and Analysis
Posts monthly timesheets to the leave pool file and re-computes year-to-date leave rates and applies leave rates to programs. This report may be printed, displayed, or exported.
The Leave Rate is calculated by dividing the Total Leave Cost into the Total Base.
(2) Fringe Benefit Analysis and Rate Computation
Reflects monthly fringe benefit transactions, re-computes year-to-date fringe benefit rates and applies rates to programs. This report may be printed, displayed, or exported.
The Fringe Rate is calculated by dividing the Class Total into the Total Base.
(3) Indirect Cost Rate Computation and Analysis
Reflects monthly indirect cost transactions, re-computes year-to-date indirect cost rate and applies rate to programs. This report may be printed, displayed, or exported.
The Indirect Cost Rate is calculated by dividing the Indirect Cost Pool into the Base for Distribution.
(4) Year To Date Cost Allocation Summary
The Year-To-Date-Cost Allocation Summary shows all allocations applied in the preceding cost allocation procedures. This report may be printed, displayed, or exported.
Step #4 Financial Reports
This series of steps will generate an agency-wide balance sheet and supporting revenue and expenditure reports.
(1) Balance Sheet
(2) Revenue and Expenditure Report by Element
This report lists line item activity by program element. It may be printed, displayed, or exported.
(3) Revenue and Expenditure Report By Project
Line item detail for all program elements is summarized at the project level. This report may be printed, displayed, or exported.
(4) Agencywide Revenue and Expenditure Report
Revenue and expenditures by line item are summarized for the entire agency. This report may be printed, displayed, or exported. When this report is displayed, the current period date is posted and retained to be reflected on applicable GL Supplements.
(5) Trial Balance
The Trial Balance allows you to select any unposted GJ batches that you wish to have appear under the Adjustment column on your report when printing it. All batches that are posted will automatically be included in the opening balance on the Trial Balance Worksheet.
(6) Supplements
Remember to print all applicable month end supplements after verification of the month end amounts.
(7) Month End Button
Upon completion of this step, the current period is considered closed and the current period date in the Organization Info form will automatically change to the next period. This step also posts all YTD salary and cost allocation amounts as of the present current month to a table. These amounts will be used in the following month to calculate current month amounts on the R&E reports.
(8) Backup Database
The database should be backed up into the Previous Backups\After Month End folder. Please see the Help section Operating Information\Recommended Database Backup Procedures for detailed instructions on backing up your database and using the backup utility.
(9) After the month is closed you may prohibit batches from being posted or unposted to closed months. Select Tools\User Setup\Month End Period tab and change the posting period to the month just closed. Note: This step must be done by a user whose security setup allows them to perform this step.
During each month, all batches entered for the month are posted to the general ledger and related subsidiary files. Financial reports and a variety of transaction listings are produced.
Most users find month end processing a largely mechanical activity since data to be processed has been entered and posted throughout the month.
Monthly Processing is divided into 4 sections each having its own menu and processing steps.
Timesheet Reports
General Ledger Listings
Cost Allocation
Financial Reports
This chapter will review all operating steps.
General Rules and Guidance
Although each GMS system will be somewhat unique with regard to the way it handles month end processing, there are some general rules and concepts which you should know and understand.
- Month end is a process of bringing balances forward from the previous month and adding the current month’s activity to those balances.
- Current month transactions are identified by the posting period date in which the batches were entered. During the month end processing you will be asked to enter a period From and To date. Once that period has been established this will identify to the system which batches to include in the current period reports.
- You do not have to process month end before you begin data entry for the new month. Simply enter the posting period on the batch control forms and on the print checks form for CD batches to the posting period in which you wish to include the batch.
The posting period date approach to processing permits entry of accounting data and related processing (accounts payable, payroll) for the next month even if you have not closed the last month.
When you rerun a report for the current month, dispose of the first copy of the report printed so there is no confusion which is the most recent one. Having the Run Dates and Run Times on all the reports is very helpful when rerunning occurs.
There are very few instances where past months should be rerun since correcting adjustments are normally processed in the current month.
This Help file outlines the controls you should check as you proceed through the month end processing steps.
- If you want to run “mid month” financial reports, you need to run Monthly Direct Workers Comp (if applicable), Monthly Cost Center Allocation (if applicable) and all of the cost allocation menu. When re-running that month, do not forget to delete the original GJ batches that were formed under Monthly Direct Workers Comp and Monthly Cost Center Allocation.
Before You Begin
Before you begin monthly processing, make sure:
- All timesheet (TI) batches for the month have been entered and proofed.
- All voucher (VR), cash receipts (CR), general journal (GJ), cash disbursement (CD) and accounts receivable (AR) batches have been entered, proofed and posted. Note: you will only have AR batches if you have supplement #336 Accounts Receivable installed.
Procedures At A Glance
Please pay particular attention to those steps marked –>. These are controls which should be checked before proceeding.
To begin processing you should:
- Print the Monthly Processing Checklist under Tools\Processing Checklists.
- Click on the General Ledger button, then select Monthly Processing.
- Click on Batch Analysis. Once the posting period is selected, this will generate an Analysis of all batches for that period. The report includes batch number, batch type, posting period, posted (True/False), total hours and amounts for timesheet batches, total debits and credits for all other batch types, and the user name that posted the batch for all batches other than timesheets since user name is not stored in the timesheet table.
Step #1 Timesheet Reports
This series of steps will produce reports analyzing current and year-to-date timesheet charges.
(1) Timesheet Charges by Activity
This report shows the labor distribution of all salaries, listing each employee under the program worked or type of leave taken. This report may be printed, displayed, or exported for the current month and/or agency fiscal year-to-date.
- When printing for a specific month, report totals should equal the total of all timesheet batches for that month.
- When printing for the agency fiscal year-to-date, report totals must match fiscal YTD timesheet charges from the previous month plus current month timesheets.
(2) Timesheet Charges by Employee
This report shows a listing by employee with the labor distribution of all salaries. This report may be printed, displayed, or exported.
- When printing for a specific month, report totals should equal the total of all timesheet batches for the month.
- When printing for the agency fiscal year-to-date, report totals must match fiscal YTD timesheet charges from the previous month plus current month timesheets.
Step #2 General Ledger Listings
This series of reports will produce various listings of monthly accounting transactions.
(1) Transaction Code Listing
This report lists all monthly accounting activity in order of GL code, date, batch type, batch # and document #. It may be printed, displayed, exported.
- Total Debits must equal Total Credits.
- 30000 accounts should not appear except for fund balances or net asset accounts.
- Account 50500 and 59700 should not appear until “Final Year End Run”.
- Transfer codes used in special allocation programs should not appear until “Final Year End Run”.
(2) Project/Element Charge Listing
This report details all revenue and non-salary direct expenses for the month. The report is sorted by GL code, date, batch type, and document # within each project/element. It may be printed, displayed, or exported.
(3) General Ledger with Current Detail
The General Ledger with Current Detail lists the fiscal year-to-date status of all agency accounts. The report is sorted by GL code, date, batch type, batch # and document #. It may be printed, displayed, or exported.
- Total Debits must equal Total Credits.
- All asset and liability accounts should be reconciled to appropriate documents, i.e., cash accounts and bank statements, accounts payable account to accounts payable analysis.
- Salaries (Account 50000) should equal “YTD Timesheet Charges”.
Step #3 Cost Allocation
(1) Leave Rate Computation and Analysis
Posts monthly timesheets to the leave pool file and re-computes year-to-date leave rates and applies leave rates to programs. This report may be printed, displayed, or exported.
- Section (1) “Salary Recap”. Total salaries should match “YTD Timesheet Charges “. Each leave taken amount should match the corresponding leave taken amounts on the YTD Timesheet Charges by Activity report.
- If annual leave is accrued, Section (2) Compute Leave Pool”, Current Liability Totals should equal the Annual Leave Accrual Totals on the Employee Leave Balance Analysis section of the report. These amounts represent leave balances in the employee files at the time this report is printed or if a pay period was selected to be used, leave balances as of that date will be used.
- Section (3) "Compute Leave Rate". Total Leave Costs is the net of the Leave Taken Charges Subtotal and Leave Liability Changes. Total Base is equal to the sum of the appropriate components above as defined in Tools/Cost Allocation Setup/Leave Allocation, for example RT Salaries and OT Salaries.
The Leave Rate is calculated by dividing the Total Leave Cost into the Total Base.
(2) Fringe Benefit Analysis and Rate Computation
Reflects monthly fringe benefit transactions, re-computes year-to-date fringe benefit rates and applies rates to programs. This report may be printed, displayed, or exported.
- Spot check a fringe benefit item that has current month charges. The YTD amount should match the Balance Forward amount on the General Ledger with Current Detail.
- The YTD Fringe Benefit Totals should equal the class totals under the Fringe Benefit Allocation Procedures.
- The Total Base is the sum of the components as defined in Tools\Cost Allocation Setup\Fringe Allocation, for example RT Salaries, OT Salaries and Leave Costs.
The Fringe Rate is calculated by dividing the Class Total into the Total Base.
(3) Indirect Cost Rate Computation and Analysis
Reflects monthly indirect cost transactions, re-computes year-to-date indirect cost rate and applies rate to programs. This report may be printed, displayed, or exported.
- Spot check a non-salary or non-fringe benefit indirect cost that has current month detail. The YTD amount should match the Balance Forward amount on the General Ledger with Current Detail. If more than one indirect element is used, the total YTD amounts expensed to all indirect elements should match the Balance Forward amount on the General Ledger with Current Detail.
- The Total Base is the sum of the components as defined in Tools\Cost Allocation Setup\Indirect Cost Allocation, for example, RT Salaries, OT Salaries, Leave Costs and Fringe Benefits.
The Indirect Cost Rate is calculated by dividing the Indirect Cost Pool into the Base for Distribution.
(4) Year To Date Cost Allocation Summary
The Year-To-Date-Cost Allocation Summary shows all allocations applied in the preceding cost allocation procedures. This report may be printed, displayed, or exported.
- Check the Regular Time, Overtime, and Comp Time columns. They should equal the respective totals on the YTD Timesheet Charges by Activity Report.
- Check the Total Leave Allocated. It should equal Total Leave Cost minus Total Leave Taken Charges on the Leave Rate Computation and Analysis.
- Check the Benefits total. It should equal the YTD total reported on the Fringe Benefit Analysis and Rate Computation.
- Check the Indirect Cost total. It should equal the YTD total reported on the Indirect Cost Rate Computation and Analysis.
Step #4 Financial Reports
This series of steps will generate an agency-wide balance sheet and supporting revenue and expenditure reports.
(1) Balance Sheet
- The Balance Sheet is a concise list of balances of all agency asset, liability and equity accounts. It reconciles all cost allocations and accrued leave costs (if applicable). This report may be printed, displayed, or exported.
- The Unreconciled Balance should be within a few cents. These penny differences are caused by cost allocation and are resolved at year end.
- Upon completion of month-end processing, an analysis should be done of each asset and liability account verifying the balances. Some users prefer to verify the asset and liability balances after printing the General Ledger with Current Detail.
(2) Revenue and Expenditure Report by Element
This report lists line item activity by program element. It may be printed, displayed, or exported.
- All Project balances in the Project Total column must agree with Project balances shown on the Balance Sheet (assuming that the balance in the prior column on the Revenue and Expenditure report equal prior year amounts in the General Ledger with Current Detail for the same project).
(3) Revenue and Expenditure Report By Project
Line item detail for all program elements is summarized at the project level. This report may be printed, displayed, or exported.
(4) Agencywide Revenue and Expenditure Report
Revenue and expenditures by line item are summarized for the entire agency. This report may be printed, displayed, or exported. When this report is displayed, the current period date is posted and retained to be reflected on applicable GL Supplements.
(5) Trial Balance
The Trial Balance allows you to select any unposted GJ batches that you wish to have appear under the Adjustment column on your report when printing it. All batches that are posted will automatically be included in the opening balance on the Trial Balance Worksheet.
(6) Supplements
Remember to print all applicable month end supplements after verification of the month end amounts.
(7) Month End Button
Upon completion of this step, the current period is considered closed and the current period date in the Organization Info form will automatically change to the next period. This step also posts all YTD salary and cost allocation amounts as of the present current month to a table. These amounts will be used in the following month to calculate current month amounts on the R&E reports.
(8) Backup Database
The database should be backed up into the Previous Backups\After Month End folder. Please see the Help section Operating Information\Recommended Database Backup Procedures for detailed instructions on backing up your database and using the backup utility.
(9) After the month is closed you may prohibit batches from being posted or unposted to closed months. Select Tools\User Setup\Month End Period tab and change the posting period to the month just closed. Note: This step must be done by a user whose security setup allows them to perform this step.