The Close Month (Fiscal Period) function is found on the Utilities menu. Prior to closing the accounting month / fiscal period, confirm that all invoice transactions, cash receipts, cash disbursements, and journal entries for the month have been entered and posted. The Power Broker system will do a check for unposted items before proceeding with monthend close.
It is not imperative that the month be closed on the last day of the fiscal period. The month may be left open until the bank statement is received and the Bank Reconciliation has been completed. This will allow you to record all bank charges into the correct accounting period.
Note that until a fiscal period has been closed, it is valid to continue entering transactions for that period. It is possible to close a month and re-open at a later date. The month must then be closed again in the proper manner. If posting late charges to overdue accounts, it is not recommended to re-open fiscal periods.
When it has been determined that all entries have been entered and posted for the accounting month, proceed with the function Close month / Fiscal Period and answer to the screen prompt ‘Are You Sure (Y/N)?’. Respond to the system prompt ‘Apply Late Payment Finance Charges (Y/N)?’. The system will prompt to print the following reports:
- Operating Statement
- Balance Sheet
- Trial Balance
- General Ledger Listing Summary
- Accounts Receivable Listing by Customer
After all reports have been printed you will be prompted ‘Close Fiscal Period – Yes / No’. Before confirming to close the month, analyze the printed reports for:
a) Accounts Receivable Listing by Customer total agrees to the General Ledger balance for the Accounts Receivable account as shown on the Balance Sheet or Trial Balance.
b) Confirm that the Trial Balance is in balance – total credits equal total debits.
c) Confirm that the Net Income totals reported at the bottom of the Trial Balance Worksheet agree. One figure is reported from the Balance Sheet and the other is reported from the Operating Statement.
d) Balance Sheet – confirm that Total Assets figure agrees to Total Liabilities and Capital.
Other Monthly Procedures
Customer Statements (Agency Bill) – (Customers – Reports menu)
Customer Statements may be printed any time throughout the month. If posting late charges at month end, it is recommended that statements be printed after late charges have been calculated.
Renewal Lists – (Policies – Reports menu)
Print Account Current Detail – (Payables Company – Reports menu)
Reconcile Company Payables – (Payables Company – Functions menu)
This function is recommended only if you are paying the insurance company based on the insurance company’s statement. If you are paying based on your own statement, use the following function.
Agency Bill Commission Reconciliation – (Invoicing / Commission – Functions menu)
When paying the insurance company based on your own statement, this function allows you to mark the commissions as being taken and producer commissions as being paid.
Agency Bill Commissions on Cash Receipts – (Invoicing / Commission – Reports menu)
When paying producers based on premiums paid by customer, print this report each month. See associated Help page for more information.
Direct Bill Maintenance & Commission Reconciliation – (Invoicing / Commission – Functions menu)
Reconcile Cashed Cheques – (Payables General – Functions menu)
This function allows you to mark cheques as cleared by bank. Those cheques left unmarked will constitute the Outstanding Cheque List used in the Bank Reconciliation procedure.
Print Bank Reconciliation – (Payables General – Reports menu)