MKMS Help

Close the Month

This Help File Page was last Modified on 08/16/2013

Close the Month

This Help File Page was last Modified on 08/16/2013

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Close the Month

This Help File Page was last Modified on 08/16/2013

Previous topic Next topic  
Before you Close a Month
Close the subordinate Accounts Receivable and Accounts Payable modules for the same month.
You can not close a Month in the General Ledger if that month has not already been closed in both the Accounts Receivable and Accounts Payable modules.
This is to prevent the entry of Financial Transactions into these modules after the General Ledger has been closed for those months.
Any previous months should have already been closed.
Once the months are closed in the subordinate modules, you may proceed to close that month in the General Ledger, either immediately, or at some later time in the future.

 

Closing the Month in the General Ledger System
On the Main Menu Select File, Choose the General Ledger sub-menu, then Click Month Close.
Close What Period? - Choose the period to close.
If you attempt to close a month in either the Accounts Receivable and Accounts Payable modules before that month has ended or within 30 days of when it ended, a warning will be displayed which may be over ridden, if required.

 

HelpFilesCloseAccountsPayableEarlyMessage

 

You may Re-Close the most recently Closed Month, or Close the month immediately after that month.
If this is the first month to be closed in a new Fiscal Year, your only choice will be to Close that Month.
However, if you have closed previous months within the current fiscal year, you are offered the opportunity to Re-Close a previous Month, or Close the current Month (see the screen illustration below).

HelpFilesGeneralLedgerCloseDialog

GL Close Month dialog

 

You may Re-Close the most recently closed month as often as needed.
This allows you to make additional General Journal Entries, as necessary, to accommodate your Accountants's adjusting entries.
Once you've closed the "next" month, you are permanently locked out of the previously closed month.
Automatically Distribute Profit or Loss for this Period - To have the Current Earnings account updated automatically, Check this box.
Click the OK button to proceed, or Click the Cancel button to abort this process.

 

HelpFilesOKorCancelButtons

 

Review the Results
Print the Trial Balance, Profit & Loss Statement and Balance Sheet for this Closed Month.
A few words about the Trial Balance and its importance in relation to closing a month:
Carefully examine the last page of your Trial Balance.
The Assets plus the Expenses account totals should equal the sum of the Liabilities, Equity and Revenue account totals.
But the Expenses total should equal Revenue total.
If this is not the case, you have probably forgotten to Check the Automatically Distribute Profit or Loss for this Period box when you closed the month.
Simply Re-Close the same month and be sure to Check the Automatically Distribute Profit or Loss for this Period box.
Reprint your Trial Balance.
Check the results on the last page (as outlined above).
If these still do not balance as noted, you almost certainly have forgotten to post Profit & Loss for a previous month.
To correct this issue:
Make the appropriate General Journal Entries (dates on the last day of the month you are "fixing".
Re-Close the month once again and Re-Print the Trial Balance, Profit & Loss Statement and Balance Sheet for this Closed Month.
So, when additions, corrections or adjustments are required, make the appropriate General Journal Entries, and then repeat the procedure outlined above.