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1. To access Month End Closing document, go to Accounting > Service Tools > Month End Closing:
2. Once the form opened, observe and fill the details before executing Mont End Closing process:
- Select correct Entity (in case of Multi-Company Accounting)
- Set a year. The chosen year is put in the center. You may use right and left arrow-buttons to change it.
- Choose a month for processing in the left column.
3. Once a month is selected, you can view which processes are available to run and which are not required.
The yellow triangle beside the month marks a month for which Month End Closing was not performed successfully, or might be manual adjustmentsadjusted.
When it turns green, it means that the month is closed successfully.
4. You may receive an error during During Month End Closing. There could be a various error.
Here we consider execution, various allocation error may appear.
Consider an error which appears due to Allocation Settings.
This error appears when the Month End Closing cannot close the values based on Allocation Settings.
Cost Allocation Methods are used to allocate an indirect and overhead cost to cost centers such as finish goods, work in progress, department, business activities and so on.
The allocation source amount will be distributed between the business activities specified for the GL accounts intended for the financial results proportionally to the cost of goods sold, gross profit, sales volume, actual production cost associated with the business activities.
5. You may Please find Cost Allocation Methods and more information about it them in Accounting >Master Data > Cost Allocation Methods:
6. Here you find Find all the allocation methods and , the sources and its their allocations:
7. Go back to the error. It means that in this month there is are not enough sales amount in this month to cover the costcosts.
Therefore, it should be closed directly to the Profit and Loss account.
8. To do the settings, go to Accounting > See also > Cost Allocation Settings.
Here you Please find a list of cost allocation settings for all account types. Now you need to open Open the concern account, which has an error, and make the setting.
9. To check the account which has an error, refer back to Month End Closing (it’s Depreciation of Fixed Assets).
Open this account from the Charts of Accounts: Accounting > See Also > Chart of Accounts.
Find and open require account and copy its section.
10. Go back to Cost Allocation Settings and find this section there and open the account type.
11. Enable an option ‘Close Directly to Profit and Loss’ and choose GL Account for Allocation – ‘Profit or Loss’.
12. Once settings are done, go back to the Month End Closing and execute it again.
The error resolved, and the amount closed directly to Profit and Loss account:
13. You may open Open a Report to see that Depreciation was close directly to Profit and Loss:
Note! As the month is executed, we advise going back to the settings and change it them back to the default setting.
Go to Cost Allocation Settings, disable the option, select the correct cost allocation method as it was by default and save the document.
The setting is done only done when the error happens.
For normal Month End Closing, it should be carried by the default allocation settings should be applied.
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