deltek insight 2012: month end close made easy!
DESCRIPTION
Take the dread out of the month end close! Attend this session and pick up tips and tricks for mastering and streamlining the month end closing process. Key reconciliations are just one of the topics scheduled for discussion -- so don't miss this session. Intermediate Level.TRANSCRIPT
Month End Close Made Easy!
Natalie Scicluna, Principal Customer Care Analyst, DeltekGC-458
2 ©2012 Deltek, Inc. All Rights Reserved
Brief Overview of Month End Process
Discuss the recommended closing steps
Review the Key Reconciliations in Costpoint
Discuss why these Reconciliations are important
Discuss the reports needed to prepare each reconciliation
Walk through how to prepare the reconciliations and what they mean
Discuss how to address discrepancies found
Agenda
Overview Month End Process
Month End Close Made Easy!
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Month End Cycle Diagram
Deltek Systems, Inc. (2010) Deltek Costpoint General Ledger & Month End Training Guide
5 ©2012 Deltek, Inc. All Rights Reserved
Month End Cycle Phases
Deltek Systems, Inc. (2010) Deltek Costpoint General Ledger & Month End Training Guide
Month End Closing Steps
Month End Close Made Easy!
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Listed below are the general steps involved in closing an accounting period:
1. Post all adjusting journal entries.2. Post all journals to the General Ledger.3. Post, then freeze, the General Ledger.4. Run a test close.5. Perform the Labor History to General Ledger reconciliation.6. Update financial statement summary balances.7. Enter and post intercompany receivables.8. Reconcile subsidiary ledgers to financial statements.9. Load labor rates for revenue and billings.10. Process and post billings.11. Perform pool maintenance.12. Compute and process indirect rates.13. Post indirect rates.14. Reconcile statement of indirect expenses to the income statement.15. Compute burden cost.
16. Compare project ledger to General Ledger.17. Process revenue, then post.18. Update Project Status Reports and create project report tables.19. Update financial statement summary balances.20. Print and review financial statements.21. Reconcile income statement to organizational cost summary, Project Status Report, and revenue summary.22. Reconcile unbilled analysis to balance sheet.23. Reconcile other material balances on the financial statements.24. Make any necessary adjustments to correct problems found while performing the above steps and reprocess if necessary.25. Print final financial statements.26. Close period.
Closing the Accounting Period
Key Reconciliations
Month End Close Made Easy!
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What to run:
Use View General Ledger Activity (GL Inquiry)
Enter FY and press execute
YTD Balance should equal 0.00
Why is it important:
This is a check to ensure there were no erroneous or incomplete postings
FS_SUM In Balance: Integrity Check
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What to run:
Use Update Financial Statement Summary Balances
Enter FY and select ‘Load Balance Differences’ then press ‘Execute’
Compares GL_POST_SUM to FS_SUM
Only update if GL Balance is correct
Why it is important:
FS_SUM is the basis for Financial Statements and Cost Pool Computations
Update Financial Statement Summary Balances
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What to run:
Use Print Labor History to General Ledger Comparison Report
Enter the FY and Period and print the report
Compares LAB_HS to GL_POST_SUM
Should be done prior to running Calculate Billings and Compute Revenue
Why is it important:
Hours pulled from LAB_HS, Amounts pulled from GL_POST_SUM
Basis for Loaded Labor Rate calculations
Basis for Project Reporting and Labor Utilization
Labor History to General Ledger Reconciliation
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General Ledger Control Account to A/P Subsidiary Ledger Compare GL Detail Report to Open A/P Report Total A/P Balance should agree on both reports Ensures the integrity of the detail in the subledger
General Ledger Control Account to A/R Subsidiary Ledger Compare GL Detail Report to A/R Aging Report Total A/R Balance should agree on both reports Ensures the integrity of the detail in the subledger
General Ledger Control Account to Fixed Asset Subsidiary Ledger
Compare GL Detail Report to FA/GL Reconciliation Report G/L Balance on Report should tie to the F/A Balance Total Ensures the integrity of the detail in the subledger
Reconcile Subsidiary Ledgers to Financial Statements
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What to run Print PSR at Org level 1 and at Actual rates Run a Statement of Indirect Expenses Compare the Indirect Expenses on the PSR to individual Pools on the
SIE Should be done after pools have been computed
Why it is important: Verifies any changes to the cost pool base including the deletion of
Account/Org combinations Validates that the Indirect Costs Burdens are absorbed by the existing
pool base
Compare Statement of Indirect Expense to Project Ledger
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What to run:
Use Compare Project Ledger to General Ledger utility
Enter the FY and Ending Period and press Execute
If records are returned, Compute Burden Costs for the Project and specified Period in table
Why it is important:
Reports cost differences between the two ledgers
Project Ledger is the basis for the computation of Revenue
Project Ledger is the basis for Project Reporting
Compare Project Ledger to General Ledger
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What to run: Generate the Revenue Worksheet and Revenue Summary Reports Run these reports prior to Posting Revenue If the Revenue figures look correct, post Revenue to the GL Generate Income Statements and compare the figures to the Revenue
Summary
Why it is important: Revenue is one of the most critical components of financial reporting
and project based reporting. Revenue must match between the Project Ledger and the General
Ledger prior to closing the month
Reconcile Revenue Summary to Income Statement
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What to run: Create and Print the Unbilled Analysis Report Review the Unbilled Balance per the GL by Project Review the calculated unbilled difference between Billing History and the
Project Cost & Revenue History. There should not be a difference between the two unless there is an
issue with either setup or processing.
Why it is important: The Unbilled Receivable account represents the biggest potential risk to
every company when left un-reconciled This account generally represents cost that has been capitalized. If this
cost is never billed, then it should be absorbed as an expense. Stale balances in this account generally represent setup flaws in the
database.
Compare Unbilled Analysis Report to Project Ledger
Thank You!