Closing Accounting Periods with QuickBooks

Acctivate does not have a formal process to close an accounting period or year.  This is a responsibility of the integrated accounting/financial software, such as QuickBooks.  First, we recommend that you check the QuickBooks Year-End Guide from the Help menu in QuickBooks.

One of the first steps in closing an accounting period (or year) is to ensure that all transactions have been posted in Acctivate and synchronized to QuickBooks.  The following transactions are often overlooked during the closing process.

  • Items received, but Inventory Receipts not yet entered and/or posted.
  • Vendor Bills received, but Purchase Invoices not entered in Acctivate yet.
  • Sales Orders have shipped, but have not been invoiced yet.
  • Inventory Count in progress, but not posted yet.
  • Negative Inventory due to a sale ahead of the corresponding Inventory Receipt

The following procedure guide should be followed when closing each accounting period.

  1. Verify that all transactions are posted in Acctivate
    • Review open Sales Orders, including Scheduled and Backordered.  Ensure that no invoices were missed.
    • Review open Purchase Orders, checking for any orders that were received and/or billed without being updated in Acctivate
    • Review the Session drop-down for all Inventory Transactions windows.  Delete any duplicated or mistake sessions.
  2. Correct any Negative Inventory (i.e., Qty on Hand below zero) mistakes
    • Negative inventory usually indicates that a sales invoice has been processed for an item that was not (or has not been) received into inventory.
    • The Stock on Hand report can be filtered to display only items Negative Inventory:
      1. Preview the Stock on Hand report
      2. Select Expert on the toolbar then click New…
      3. Select ProductWarehouseSummary.QtyOnHand and click OK
      4. Choose is less than, enter 0.00 and click OK
  3. Synchronize with QuickBooks using the Full Synchronization option
    • The Full Synchronization option includes all customer, vendor and inventory transactions.
  4. Confirm there are no warnings or exceptions in the synchronization.
    • Only “Green checks” should appear for each Synchronization Task
    • Click View Log and confirm there are only two “Info” lines
  5. Set Closing Date and Password in QuickBooks Preferences
    • Review the QuickBooks Support article with instructions
    • The Closing Date/Password blocks transactions from any third-party application, such as Acctivate.
    • The Password cannot be entered during synchronization to override individual transactions.
  6. Synchronize with QuickBooks again
    • It’s important to immediately synchronize again to update the Closing Date in Acctivate.
    • New Acctivate transactions prior to the closing date will be blocked
    • Transactions prior to closing date cannot be voided

If you are receiving synchronization errors after setting the closing date in QuickBooks, refer to this article for more information.

Posted in QuickBooks and Sync - Last modified on September 10, 2015Cassandra Creasy
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