Year-End is always a busy time!
So busy that it’s easy to forget things that must be done in your ERP system to close out the year properly and set you up for a good start to the following year. Here are some things to add to your to-do checklist.
The year-end close process provides an opportunity to:
- Remove discontinued items.
- Remove sold purchase receipts.
- Remove lot attributes for sold lots.
- Update standard cost based on current cost field. (for environments without Manufacturing only)
Prepare for Year-End Close
- Conduct full physical inventory and update quantities before actual year-end or establish a strong cycle-counting program.
- Check for any applicable sales and purchase invoices/returns and post.
- Prepare users for a year-end push to complete all year to date inventory adjustments, receipts, and invoicing.
- Determine how to handle new year transactions without posting.
- (Manufacturing) Determine what new standard costs should be entered for the upcoming year.
- (Manufacturing) Discuss cutoff dates for removing Archived BOMS and Closed/Canceled Mfg Orders.
Finance Specific Items:
- Set up the financial periods for 2021
- Open period January in 2021
- Finalize any outstanding transactions from the current year (2020)
- Soft-close any open periods in 2020
- Issue any old sales invoices
- Fix any outstanding financial integration errors
- Set up new integration mapping for 2021 as needed.
- Test the mapping in a test environment prior to the new year
- Review & update jobs as needed to ensure they will process in 2021
- Determine for cash-flow purposes, what purchase invoices won’t be paid until 2021