Closing Accounts Payable Period

1. Ensure that all the Invoices for the period are entered and matched to the PO
Receipts, if applicable

2. Run ‘Payables Open Interface Import’ to import invoices from other sources (if
any).

Eg: Below is the example to import intercompany invoices. Select the “Batch
Name” from the List of Values. Ensure that the output does not have any
exceptions. If exist, Review and Resolve the exceptions.

3. Ensure that the Non-PO Invoices, Petty cash Invoices etc. are entered.

4. Ensure that the Prepayments (advance payments) are applied to the Invoices.

5. Ensure that all the payments are entered.

6. Ensure that all the Invoices are validated and are not placed on hold.

7. Run the ‘Update Matured Bills Payable Status’ program. This will update the
status of matured future dated payments (PDC) to Negotiable so you can account
for them.

Page 1 of 6
8. Clear the payments in Cash Management module and complete the bank
reconciliation for payments.

9. Run ‘Create Accounting’ Process from Payables Super/Setup User Responsibility.

This program creates accounting entries for all the validated invoices and
payments. And, it transfers the accounting entries to General Ledger, submits
Journal Import and posts the accounting entries in General Ledger.

10. Once the above request is completed, run ‘Transfer Journal Entries to GL’ from
Payables Super/Setup User Responsibility to ensure that there are no Payable
transactions which are not transferred to GL.

Page 2 of 6
11. Run “Unaccounted Transactions Report” from Payables Super/Setup User
Responsibility and review all unaccounted invoice and payment transactions and
see the reason that Payables cannot account for a transaction. The report also lists
any transactions that have been accounted with error. Run this report after you
have run the Create Accounting Process. The report will then show only
transactions that had problems that prevented accounting. You can correct the
problems and resubmit the Create Accounting process (i.e. Steps 9&10 above).

12. Run ‘Mass Additions Create’ Program from Payables Super/Setup User
Responsibility to transfer any asset lines to Fixed Assets.

13. Once all the transactions for the period are accounted and transferred to GL, Run
‘Accounts Payable Trial Balance’ from Payables Super/Setup User Responsibility
as of last day of the Period. Select the Layout as “Accounts Payable Trial Balance -
Group by Account”.

The report output would be in the below format.

Page 3 of 6
14. For Reconciling the Advance to Suppliers, run the ‘Pre-Payment Balance Report –
Functional Currency (Czech)’ from Payables Super/Setup User Responsibility and
compare the balance with GL Balance.

15. Navigate to Control Payable Periods

Try to close the period. You may encounter the following exception if there are any
unaccounted or unvalidated invoices etc are there in the period of interest.

16. To Review the exceptions click on button. The below

‘Decision’ window will open.

17. Choose Review button from the above ‘Decision’ window. System will generate
‘Period Close Exceptions Report’, which will list out the exceptions.

Page 4 of 6
 Note: Review the exceptions and resolve. If you have validated/resolved these
exceptions, then repeat steps 8 to 14, as this will affect account balances.

18. If the exception can be resolved in subsequent period, Sweep the transactions to
next open period as explained in steps 19 to 22.

19. Navigate to Control Payable Periods

Try to change the status of the period of Interest to ‘Closed’ and click on Exceptions
button. The ‘Decision’ window will open. Click on Sweep button in the ‘Decision’
window. Then the following window appears.

Note: To Sweep the exceptions, the next period should be opened first.

20. Click on Submit.

21. To continue click on OK.

22. To see the transactions those are swept to next period click on OK and view the
request output.

The system updates the GL Distribution Date (Invoice Distributions window) to the
1st Day of Subsequent Open period.

The following are the GL Control Accounts for Payables;

Page 5 of 6
  221101 - A/Payable - Creditors - Local
 221102 - A/Payable - Creditors - Employee
 221151 - A/Payable - Creditors – Import
 221401 - Intercompany Payables
 221402 - Related Parties Payables
 146501 - Prepayment Account-Supplier Advance

If GL Balance and Accounts Payable Balance do not tie up then, the following could be
the reasons;
 Manual Entries in GL
 AP control Accounts wrongly selected in Sub ledgers (AR/AP/FA/PO/ Inventory).

Page 6 of 6