| Activities | Prerequisite | System processing | Output | Generic business rule |
| Check for period close exceptions | All transactions for the period have been entered and the period has to be closed. | All transactions which prevents the period from closing are listed in the period close exception report. | Period Close Exception Report | Generally the period close exception report is run to identify invalidated before closing the period in sub ledgers. |
| Validate all invoices | Period close exception report shows invalidated invoices | All invalidated transactions need to be validated / approved. | All transactions are validated | None |
| Create Accounting | Unaccounted transactions exist in Payables | Accounting entries generated for all transactions in Payables | Accounting entries | Accounting entries are balanced. |
| Transfer Payments / Invoices to GL | Payments made in the system have not been transferred to GL | Payments transferred to GL | Unposted transaction in GL | All payments till time of running these requests would be transferred to GL in respective periods. |
| Request Period Close Reports | Reports require to reconcile vendor balances | Reports generated by system | Reports | These reports are standard reports. More reports can be included as required |
| Reconcile Open Invoices | Period closure activities are complete and transactions have been transferred to GL | Reconcile unpaid open invoices posted to the AP Liability Account using the AP Trial Balance Report and Posted Invoice and Payment Registers. Verify that: Prior Month AP Trial Balance plus (+) current posted invoices (from Posted Invoice Register) minus (-) current posted payments (from Posted Payments Register) equals (=) Current Month AP Trial Balance equals (=) AP Liability Account Balance (from Account Inquiry in GL) Note: Run General Ledger Account Analysis Reports for each AP Liability account to review a listing of detail transactions posted to each Bank Account for reference during reconciliation. |
Reconciled AP trial balance | None |
| Reconcile Payments | Period closure activists are complete and transactions have been transferred to GL | Verify that the Prepayment Status Report equals the Prepayment account balances. Verify that Payments Register balance equals Posted Payment Register balance. Verify that Void Payment Register entries are accounted for on the Posted Payment Register, and have a 0.00 amount.Payment Register equals (=) Posted Payment Register equals (=) Cash Account Period-to-Date Activity Reconcile Cash Accounts using the Posted Payment Register. Verify that: GL Cash Account period activity minus (-) AR Receipts Debits minus (-) Payroll Journal Debits minus (-) Misc. Transactions (i.e. wire transfers) minus (-) Other GL Journal Activity equals (=) Posted Payment Register Note: Run General Ledger Account Analysis Reports for each Bank account to review a listing of detail transactions posted to each Bank Account for reference during reconciliation. |
Reconciled Payments | None |
| Close Current Period | Notification to close period received from branch finance | Period closed | Period closed | If problems closing AP, run the Invoice Sweep process |
| Notify GL User of AP period closure | None | Notify GL Accountant that Payable Close is complete. | Notified | None |
| Open Next Period on last day of month | It is the last working day of the month | Next period opened for Payable transactions | Period opened | None |
