End of Month

Unlike the debtors system supplier documents can be easily placed into any present or future accounting period without significant effect on the accounting cycle. Past period postings can be achieved for aged balance effect but will still be posted to current period totals. Future period postings can be recorded but not updated against balances, month and year to date total etc. until the files are aged into the relative period.

While this alleviates the problems of holding next months transactions while waiting for the last of the current period invoices to arrive, it may still be desirable to obtain realistic purchase report figures from the creditors files. To enable this the creditors system mirrors the end of month processing modes of the creditors system. These modes are:

• Normal - the condition the system is in for most of the month.

• Preparation - a state where the accounts payable manager wishes to control what is posted now and what should be held over until next period.

• Lock-a state where the manager wishes to prevent any changes so that consistent end of month reports can be produced..

Creditors documents differ from their sales counterpart by the way in which their accounting period is determined. With sales documents the period of a document is relative to the current accounting period when the document is processed. On the other hand supplier documents are created with the current accounting period as a default. You may alter this period when editing the document. The Age shown on the document at the time of processing will be the period used for account balance and General Ledger posting effect with the following exception. Where the Age of a transaction is prior to the current creditors period the document is processed to the current period but the Aged balance specified is updated for the supplier.

Preparation mode is used in the creditors system to restrict common access being used to process documents. This allows the manager to process outstanding documents and make any adjustments without fear of accidental inclusion of new documents being entered for the next accounting period.

Lock mode is used as it is in the debtors system to prevent changes in balances and accumulators while reports are being produced. This ensures integrity of reporting.