Pre Steps before month End Close Process in Dynamics AX-

Hi All, Good Morning

Everyone's favourite topic, month end close. This list combines details from a number of sources to check before the Year End Closing.

First a quick note. Not everything on this list is applicable to every environment. For example if you are not doing production or multiple currencies, those steps are not required.

I suggest you before going to Month End and Year End Closing fallow to this Steps so, at the time of Month End Closing we are not facing any Error.

Open Orders-

This is the Last step before month-end and will help get all your accounts ready to reconcile.

1.                   Production - End all Reported as Finished work orders. This will post all costs financially. Be careful when processing large numbers of work orders that your selection is accurate. I have seen many instances where instead of just finished orders, all orders are ended.

2.                   AR - Invoice all applicable Sales Orders, Return Orders and Free Text Invoices. Note the Shipped but not invoiced screen in AX, only shows fully shipped, not partially shipped orders. 

3.                   AP - Invoice all Received Purchase Orders. Again, verify your RNI screen is showing partials and not just fully received.

4.                   Inventory - Finish processing any Quality Orders and Transfers.

5.                   GL - Post all open journals that need to be posted.

General Ledger

1.                   Restrict access or put modules on hold. General Ledger > Setup > Ledger, on the menu tab, click on the “Ledger Calendar”. Here either select the user group or put the module on hold.

2.                   Run reconciliation reports – General Ledger to Bank, Customer, Sales Tax, and Vendor. General Ledger -> Reports -> Reconciliation

Accounts Receivable

Run the Detailed due day List report

1.                   Print and validate the Detailed due day List report. Accounts Receivables -> Reports -> Status -> Detailed due day list

2.                   Print and validate the AR Aging Report and reconcile the total to your A/R trade Account in your Trial Balance. Accounts receivable -> Report -> Status -> Customer Aging

3.                   In case of discrepancies, run the Reconciliation report in GL for your customers and check “differences only” - General Ledger -> Reports -> Reconciliation -> Customer -> Customer.

Accounts Payable

1.                   Print and validate the AP Accrued purchases (GRNI report) - Procurement and sourcing -> Report -> Status -> Accrued Purchases.

2.                   Print and validate the Vendor Detail Due Day List report. Accounts Payable -> Report -> Status -> Vendor Detail Due Day List (US/CAN only with customization)

3.                   Print AP Aging Report and reconcile the total to your A/P trade Account in your Trial Balance. Accounts Payable -> Reports -> Status -> Vendor Aging

4.                   In case of discrepancies, run the Reconciliation report in GL for your vendors and check “differences only” General Ledger -> Reports -> Reconciliation -> Vendor -> Vendor

Fixed Assets

1.                   Record depreciation (depreciation proposal), acquisition, disposals of fixed assets.

2.                   Fixed Assets transactions report - Fixed Assets -> Reports -> Transactions -> Fixed Asset Transactions

3.                   Fixed asset balances report - Fixed Assets -> Reports -> Periodic -> Fixed Asset Balances

Inventory Management

1.                   Run the Inventory Value Reports to reconcile all your WIP, COGS, Deferred COGS, and Inventory. Inventory management -> Reports -> Status -> Inventory Value -> Inventory Value

2.                   Month end close – Inventory management -> Periodic -> closing and adjustment. You should close inventory, even in a standard cost environment. In non-standard cost, you should also consider revaluing your on-hand inventory and adjustments of large open transactions to make your current inventory close to actual. 

Sales Tax

Note - if you use a 3rd party Sales tax product (CCH, Avalara, Vertex) these steps will not apply. Follow your ISV's instructions. 

1.                   Run the sales tax payment / posting. General Ledger -> Periodic -> Sales tax payments -> Sales tax payments.  If you do check the “update Box”, the sales tax payment will be posted for this period.

If you do not chose update but chose to accumulate sales tax – you have to post the payment manually to sales tax authorities.

Foreign Currency Revaluation

1.                   Validate that the Main Accounts for AP and AR balances do NOT have Foreign Currency Revaluation checked.

2.                   Update the exchange rates in General ledger -> Setup -> Currency -> Currency exchange rates

3.                   AP - Accounts Payable -> Periodic -> Foreign Currency Revaluation. Run Simulation prior of running the Foreign Currency Revaluation.

4.                   AR - Accounts Receivable -> Periodic -> Foreign Currency Revaluation. Run Simulation prior of running the Foreign Currency Revaluation

5.                   GL - General ledger -> Periodic - Foreign Currency Revaluation. Run this to update those Main Accounts not updated by the AP and AR processes. 

Financial Statements

Now we are ready to go for Month End Closing and print the financial report.

                                                      Thank you- Subrat Kumar