Purchasing Period Close Checklist

Revised 08/24/2000

For Cycle: . . . . . . . . . . . . Run Date: . . . . . . . . . . .

Day Step Process Navigation Path [Top-Ten Shortcut] Resp.

 Process Description Person
In the Purchasing Super User Responsibility
0 1. Complete PO a. Complete all receipt and delivery processing in Purchasing, Inventory and
and AP Work-in-Process.
transactions b. Complete all invoices processing in Payables.
c. Verify that GL has Imported Purchasing Receipts journal batches
before processing to run PO expense accruals.

Note: Accounts Payable must already be closed.

0 2. Run Uninvoiced Reports> Run [Requests> Submit]

Receipts Report a. Run the Uninvoiced Receipts Report for Expense and Capital
distribution accounts
Accrued Receipts= <No>
Include Online Accruals= <No>
Period= <current period as MON-YY>

b. Review the report details to verify correct expense accounts and amounts
with GL Accountant and agree what should be accrued. The next step
generates GL journal entries to expense account with offset to AP expense
accrual account.

0 3. Accrue Reports> Run [Requests> Submit]

Uninvoiced If expenses are to be accrued:
Receipts a. Run the Receipts Accrual - Period-End process

Important: Request the GL Accountant to import the perpetual accruals from

Purchasing (journal category = receiving) before you run the month-end
receipt accrual process for your expense accruals (journal category = accrual).
This keeps the two journal categories out of the same G/L batch and makes it
easier to reverse the expense accruals in the new period.

 Rerun the Uninvoiced Receipts Report for Expense and Capital

distribution accounts
Accrued Receipts= <Yes>
Include Online Accruals= <No>
Period= <current period as MON-YY>

c. In GL import and post PO expense accrual journal entry batch.

Note: AP must already be closed.

0 4. Close Period Setup> Financials> Accounting> Control Purchasing Periods

a. Find the current Period, set Status = Closed

Note: Close Purchasing after Payables is closed.

0 5. Open Period Setup> Financials> Accounting> Control Purchasing Periods

a. Find the next Period, set Status = Open

0 6. Notify Notify Operations that next Purchasing period is Open.

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Copyright  2000 KPMG Consulting LLC.
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 Purchasing Period Close Checklist
Revised 08/24/2000

Day Step Process Navigation Path [Top-Ten Shortcut] Resp.

 Process Description Person

0 7. Notify Notify GL Accountant that Purchasing Close is complete and Purchasing

Journal should be imported and posted.

1 8. Run Month Use to reconcile the Inventory AP Accrual account 20910 in GL.
End
Reconciling Reports> Run [Requests> Submit]
Reports a. Run the Receiving Value Report – Real Time (need month-end snapshot)
b. Run Receiving Account Distribution Report by Destination Account.

Use to review PO/AP matching variances generated during the month.

Reports> Run [Requests> Submit]
a. Run the Invoice Price Variance Report
b. Run the Purchase Price Variance Report

Note: Receiving Value Report is Real Time and must be run on the last day of
the month immediately following the Inventory close. The reports above are all
run as part of the Cost Management close.

1 9. Run Accrual Reports> Run [Requests> Submit]

Reconciliation a. Run Accrual Rebuild Reconciliation Report (This will rebuild the table
Reports for of inventory accruals for reporting purposes.)
Write-off b. Run Accrual Write Off Report
preparation c. Run Accrual Reconciliation Report (specify parameter to include written
off transactions or not.)

1 10. Reconcile PO a. Reconcile PO accrual accounts with General Ledger accrual account
accrual balances.
accounts Use the ‘Report Summary by Source and Accrual Transaction section of
the Accrual Reconciliation Report to reconcile with GL.
b. In General Ledger:
Run the Trial Balance Summary1 Report (with Amount Type = PTD) for
GL account balances after the PO batches have been posted in GL.
1 11. Prepare Accounting: Write Offs [Accruals Write Offs]
Accounting a. Record discrepancies using the Accrual Write-off Form.
Accrual b. Using GLDI, construct a manual write-off journal entry and import it for
Write-offs posting. Instruct AP to correct any invoice distribution lines as needed.
c. Notify GL Accountant of Accrual write-off batch for GLDI import and
posting.

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/conversion/tmp/scratch/453921241.doc
Copyright  2000 KPMG Consulting LLC.
All Rights Reserved.