Ready, Set, Close!Stacey McCarver, DeltekGC- 471
AbstractThis Session will give you an overview of the monthly andannual closing processes. We will review the reconciliati...
When is the best time to begin your month end processing? 3          © 2012 Deltek, Inc. All Rights Reserved
Plan the monthly accounting activities     Use a monthly planner     Accounting routines should be the same every month ...
Month End CloseCheck List
Month End Processing Steps1. Post adjusting journal entries                      9. Print final billing2. Post all journal...
Step 1: Post Adjusting             Journal EntriesMake any and all necessary adjusting journal entries     Review and upd...
Step 1: Post Adjusting            Journal EntriesUtilize Recurring JournalEntries     Saves time and potential      entry...
Step 2:            Post All JournalsPost all journals     Use Test feature in the Print G/L*Close Accounting Period appli...
Step 2:             Post All JournalsCut-off current periodprocessing      Turn off “Current Period       Processing” in ...
Step 2:            Post All JournalsRun the GLReconciliation ReportDiagnostic toolidentifies the major out-of-balance situ...
Step 2:             Post All JournalsRun the GL Reconciliation Report      Trial Balance Option       Calculates the net...
Step 2:            Post All JournalsRun the GL Reconciliation Report      G/L Summary to G/L Detail to Labor Summary Opti...
14   12/11/2012   © 2012 Deltek, Inc. All Rights Reserved
Step 3:                 Allocate Service CentersNever prompted that there are “unallocated service centers”      Extremel...
Step 4:             Prepare BillingsMust be performed here if Revenue = Billings      Otherwise, can be performed through...
Step 5: Reconciling –             Accounts PayableReconcile Open Accounts Payable to the General LedgerConsider the top th...
Step 5: Reconciling –              Accrued LeaveReconcile the Accrued Leave Report to the General LedgerConsider top three...
Step 5: Reconciling –             Accrued Leave (cont’d)Auto-Adjusted Timesheets      Leave taken is booked against the l...
Step 5: Reconciling –             Accrued SalariesReconcile the Accrued Salaries account      Always carries the value of...
Step 5: Reconciling –             Accrued SalariesCommon causes of a payroll variance      Manually changing gross pay on...
Step 5: Reconciling the              ZZZZ-000-00 AccountGCS Premier provided suspense account      Utilized each time a p...
23   © 2012 Deltek, Inc. All Rights Reserved
Step 6:          Calculate Indirect RatesProcessing steps vary based on pool structure   Co-Wide rates   Divisional rate...
Step 7: Compute Costs          and RevenueCompute, compute, compute!Review Contract Revenue Summary ReportsUse JSRs for in...
Step 8: Tie-in Contract Reports            to Financial StatementsTie Gross Profit on the Income Statement to Contract Fee...
Step 8: Tie-in Contract Reports             to Financial StatementsTie Direct Labor from the Income Statement to      Dir...
Step 9: Unbilled AnalysisSuffix 12 in the GLUtilize the Billing Worksheet      Excellent tool to identify and analyze unb...
Step 10: Print Final JSRsExpedite the process, utilizing  Pre-Set Report Parameters      Report Groups      Batch Manag...
Step 11: Make Additional Adjusting            Journal EntriesAdditional entries should not affect revenue, billing, or ind...
Step 12: Print Financial StatementsBalance Sheet                                        Automated/paperless optionsIncome ...
Final StepsStep 13: Print Impromptu reportsStep 14: Back up – Make an “end of month” backupStep 15: Close the period – Pri...
Step 14: Back up Data FilesBackup Data into new Folder      Create new Audit Folder (September 2012)      Ensure all use...
Step 15: Close Accounting PeriodCurrent balances in the General Ledger are combined with theprevious YTD balancesReversing...
Annual ClosingProcesses
Annual Closing ProcessesFiscal Year CloseStandard Month End Close ProcessTiming of Audit DirectoryCalendar Year Close  Cl...
37   © 2012 Deltek, Inc. All Rights Reserved
Questions?     www.twitter.com/deltek     www.facebook.com/deltekinc     www.linkedin.com/company/163414     www.youtube.c...
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Deltek Insight 2012: Ready, Set, Close! Tips and Tricks for a Streamlined and Successful Month End Close

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This session provides an overview of the monthly and annual closing processes. We'll review the reconciliations that you should complete and what to do if something does not reconcile. We'll provide a recommended 'closing checklist' to help you stay on track -- to ensure a successful close on time, every time! Intermediate Level.

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  • The closing of each accounting period should be completed on a timely and careful basis.
  • This is a standard sample checklist. You can use this as a template for developing your own checklist.
  • As part of your closing routine, you should always make any and all adjusting journal entries you know to be necessary. In addition, you should review and update standard journal entries. After all journal entries have been made in the Enter/Edit Adjusting JE's screen and the Enter/Edit Recurring Journal Entries screen, you must print the General Journal and post the entries to the General Ledger (this is done in the Print/Post General Journal screen).Keep in mind, entries relating to Accounts Payable and to Labor and Accrued Salary accounts should be made only through a journal entry if they are subsequently reversed out in the next period. Any adjustments to these accounts must ultimately be made through the Accounts Payable, Timesheets * Labor Distribution, or Payroll * Human Resources module so the subsidiary files are properly maintained
  • Regular adjusting journal entries are cleared out of the JE file during the month end closing process. By utilizing the recurring JE functionality, Recurring JEs remain in the JE file – therefore eliminating the need to re-enter in subsequent months. Utilizing recurring JEs eliminates potential errors-key punch or transposition of numbers. Recurring JEs remain in the file forever – delete the record when the entry is no longer necessary. (the screen shots change automatically)
  • Screen shots change automaticallyAfter you have recorded all known transactions (e.g., A/P vouchers, timesheets) for the current accounting period, you should begin the closing process by printing and posting each of the various Journals to the General Ledger that you have not already posted (with the exception of the Billing and Contract Revenue Journals). These journals include the Labor Distribution,Payroll Journal, Voucher Distribution, Cash Disbursements Journal, Cash Receipts Journal, and Inventory Journal. In closing out each journal, you are required to print each journal; since these amounts will be posted to the General Ledger, it is imperative that you retain each of the journals that are printed.
  • Run from the Utilities tab of the G/L moduleLocated under the Utilities Tab of the General Ledger ModuleTrial balance option – basically-high level review indicating whether or not all accounts are in balanceOnce all labor and expenses have been posted to the General Ledger, print GL & Labor History Reconciliation Report from the G/L Reconciliation Report screen. This report compares the General Ledger to both the Labor Summary File and the G/L Inquiry (also the G/L Detail Report screen). Read the section in Special Topic GL-3 titled "Internal File Reconciliations," aswell as the documentation for the G/L Reconciliation Report screen. If differences exist, some may be handled by you and some will require Technical Support
  • Located under the Utilities Tab of the General Ledger ModuleTrial balance option – basically-high level review indicating whether or not all accounts are in balance
  • Located under the Utilities Tab of the General Ledger ModuleHow to Read This ReportOnly accounts that are not in balance are printed on the report. "Not in Balance" means that the G/L Master File balance does not match the sum of the detail records in either the G/L Detail File or the Labor Summary File, depending on the option chosen. If only the headings are printed and the trial balance is not out by any amount, then you are in good shape. The "Difference" is the G/L Detail or Labor History column less the G/L Summary column
  • Service Center Session #If you are using the Service Center Pools feature (the Service Center Pools screen), you may have service center costs which are allocated to contracts. If so, these allocations should take place before billings are computed. If these allocations only affect indirect expenses, or if allocations take place on the "proportional" method rather than targeted method, then this step should be performed after billings are prepared, but before indirect rates are calculated.
  • Contractors will generally want to prepare and send billings as soon as possible. This can be accomplished in the system at any time, providing that labor and expenses have been posted tothe General Ledger (i.e., the Labor Distribution and Voucher Distribution Journals for the period being billed have been posted), and that you bill using provisional billing or T&M rates. If youbill at actual rates, you should wait to compute billings until after the actual indirect rates have been calculated (Step #6).After posting the Billing Journal, print a F/S Code Summary for the line on your Balance Sheet for Billed Receivables. Also, print the Analysis of Billed Receivables. These two reportsshould be compared and any discrepancies resolved.If you need accurate unbilled receivable totals on the billing worksheets, then, after the Contract Revenue Journal (the Print/Post Revenue & WIP Journals screen) has been posted, thebilling program (the Compute Contract Billings screen) should be run and the billing worksheets and Analysis of Unbilled Receivables reprinted. When billings are prepared before the contractrevenue is posted, the billing worksheets will not include the current period's revenue. However, the billings themselves are not affected by the posting of contract revenue; billings are oftenprepared twice a month, and contract revenue posted once a month, after the billings are prepared.Within the Billing * Accounts Receivable module, a step-by-step narrative is provided with the procedures that are necessary to edit, print, and post the contract billings
  • Refer to AP Special Topic AP-4 for in-depth discussion and additional causes aPRINT TRIAL BALANCE AND TIE IN ACCOUNTS – AP,LEAVE, SALARIES AND ZZZZ.At this point, the Open A/P Report should be tied to the A/P G/L account. The AccruedLeave Report should be tied to the Accrued Leave G/L Account(s). The Accrued Salary account should be tied to the Labor Distribution for any unpaid payroll as of the end of the period. Taxwithholding and deduction accounts need to be reviewed for reasonableness
  • Refer to Special Topic PA-4 for in-depth discussion
  • Refer to Payroll Special Topic PA-4 for in-depth discussion
  • Refer to Special Topic PA-3 for in-depth discussion
  • Refer to Special Topic PA-3 for in-depth discussion and PA-10 for excess life
  • For more information on indirect rates – sessionsAfter all journals (except contract revenue) and journal entries have been properly posted to the General Ledger, you will then be ready to calculate indirect rates and revenue. Keep in mind that the statement of indirect expenses and the contract revenue calculations all use current data from the General Ledger; thus, it is important that all data has been properly posted and iscorrect. First, you should print the Statement of Indirect Expenses (the Co-Wide Pool Report * Calculations screen and/or the Divisional Pool Expense Report * Calculations screen) to determine the status of your current overhead rates. In doing so, you should review the charges on the statement to see that the rates have been computed properly. If not, then you will need to go back and make the appropriate changes. Refer to Special Topic CT-21 in the Contracts module manual. This special topic describes various steps that, depending upon your organizational and pool structure, may be required to allocate costs from pools to other pools or divisions.
  • After printing the indirect expense statements, you will then be able to compute the contract revenues for each contract (the Compute Costs & Revenue screen) and post the Contract Revenue Journal. You may select to allocate either target or actual indirect rates to contracts for this revenue calculation. After calculating the revenues, you should print the Contract Revenue Summary (the Print/Post Revenue & WIP Journals screen) and review it carefully to ensure that revenue has been properly computed on each job. If it was not computed properly, this should be corrected in the Contract Master File screen before continuing and recalculating contractrevenue.You can post revenue only once each time you compute revenue for all contracts (the Compute Costs & Revenue screen); however, you can print many different combinations of reports from the revenue and cost file without recalculating revenue (the Print/Post Revenue & WIP Journals screen).You can calculate and post revenue as many times as necessary. You do not need to worry about double-posting revenue; the posting program evaluates the amounts already posted to the G/L and posts any differences.After contract revenue has been properly computed, Job Status Reports should be printed and distributed to project managers. This can also take place mid-month or at any time. The costs reflected in some of the reports will reflect all postings to the G/L and Labor History as of the time they are printed. Other reports, such as the Job Status Summary, are printed from the Contract Revenue File, which is only updated when contract revenue is computed (the Compute Costs & Revenue screen), and thus will include all costs posted to the G/L as of the time revenue was computed. It is usually best to establish a set schedule of when these reports will be printed and distributed. Since there are many options relating to these reports, you will need to establish your own procedures as to which of these reports are printed. Report groups and preset reportparameters can be established to facilitate this.Job Status Reports can be printed with target or actual rates. Often mid-month or monthly reports are printed using targeted rates, while fiscal year end reports are printed using actualrates.You will then need to print out a final Contract Revenue Summary (the Print/Post Revenue & WIP Journals screen) and post the revenues and variances to the General Ledger. You mayalso want to print any of the Contract Cost Summaries.
  • Print a Company-Wide Statement of Income and also one for each division, if you have divisions. Reconcile the amounts on the Income Statement to the Contract Cost Summary, Contract Revenue Summary, and the Statement of Indirect Expenses.Confirm that the target rate percents on the Contract Cost Summary are correct.Especially confirm that the Gross Profit from Operations for the company-wide and each divisional Statement of Income is approximately the same amount (within .005% of sales) as theYTD Contract Fee on the Contract Revenue Summary. It will be different if any non-contract revenue or expenses are above this Gross Profit line on the Statement of Income, or if steps werenot performed in the correct order.
  • Detailed in session XXXXLook for other sessions on reconciling.
  • Now that revenue has been computed and posted, billings should be recomputed so that revised billing worksheets can be produced. The Current Billing column should be zero. If it is, the unbilled column on these billing worksheets should support the unbilled receivable accounts in the General Ledger and the Per Analysis column on the Analysis of Unbilled A/R
  • Streamline the JSRs process – SessionThe Job Status Reports are key management tools. Some of the reports require that revenue be computed first; others do not. These reports can be printed sooner than this step, if desired, after journals are posted and revenue computed. Revenue does not have to be posted for the salesto appear on these reports
  • Before printing financial statements, you should make sure there are no additional adjusting or reclassification entries needed to properly state the balances in the financial statements. If such entries exist, they should be made at this time. Be aware that any additional entries may also affect previously computed and printed rate sheets, Job Status Reports, and billings, and these may need to be revised.An adjusting journal entry will generally be needed to reclassify indirect expenses on the Statement of Income. This will allocate costs between pools to reflect any allocation of FringeBenefits to Overhead and G&A Labor, and to reflect any allocation of Overhead to G&A, B&P, or IR&D Labor. This will need to be done by division if divisional income statements are printed. Unallowable G&A or Other type accounts will need to be set up in the Chart ofAccounts screen for this reclassification.If needed, enter an Adjusting Journal Entry for Federal Corporate Income Tax, which is an unallowable G&A expense.If needed, enter an adjusting journal entry for State Corporate Income Taxes. Generally, the accrual for the current years tax return's State Corporate Income Tax is an allowable G&A cost.If the books are on the accrual basis and the tax return is on the cash basis, then the deferred amount, if any is booked, is generally an unallowable cost. On the Statement of Income, the nondeferredtax is generally included in the allowable G&A pool, while the deferred tax, if any, is generally included at the bottom along with the accrued Federal Income Tax.If revenue is either at actual (based upon spreading actual indirect rates to contracts) with taxes on a cash basis, or if revenue is at target with all variances posted (and taxes either on acash basis or accrual basis), then after this adjusting journal entry is posted, you will need to recalculate the Statement of Indirect Expenses, recalculate the Contract Revenue, reprint and post the Contract Revenue and Cost Summaries, and reprint the Statement of Income and the Balance Sheet.If revenue is at actual with taxes on an accrual basis, then posting this entry will generally change the accrued revenue, which will generally change the accrued State Corporate IncomeTax, so you will need to estimate the tax and repeat the steps in the last paragraph several times until an acceptable degree of accuracy is attained. Many users estimate this amount for interimstatements, and then fine-tune this calculation for the final fiscal year statements.Since all adjusting journal entries will have been posted at this time, now print a complete General Journal for the entire accounting period (the Print/Post General Journal screen).
  • The financial statements are comprised of the Balance Sheet (the Balance Sheet screen) and the Income Statement (the Income Statement screen). Supporting the financial statements is the F/S Code Summary Report (the F/S Code Summary Report screen). Other optional reports toprint at this time are the Indirect Expense Report (the Indirect Expense Report screen), Direct Expense Report, and Trend Reports.The financial statements and supporting reports can be printed with various adjacent comparison columns including the prior period, prior year's ending balances, same period prior year, and budgets. If errors are discovered after reviewing the financial statements, you can still make adjustingjournal entries and reprint them. If adjustments of a material nature change expense account balances or revenue, then you may also want to rerun indirect rates and contract revenue calculations
  • Once you feel comfortable with the data and amounts that have been posted to the GeneralLedger for the period, print the General Ledger (the G/L can be also printed at any time). Beforeprinting the G/L and closing the period, you should always make backups of your data files.These backups will be crucial if you have a problem during the closing program, or if youdiscover that material costs were not included in the accounting period, or if you wish to restorethe month in another directory at a later time to print additional reports.Since so many files are changed in the accounting period end close, "Crash-Proofing" is notused. If, due to a software or hardware problem, your system crashes during the accountingperiod close program, in most instances, Technical Support will advise you to restore backups asyour recovery method.Many users store the end of the accounting period backups in a safe or fireproof lockedcabinet, at a location that is separate from the daily or weekly backups. Often three alternatingsets of these accounting period backups are adequate, although some users keep the last twelveaccounting period's backups, or more.Backups in general are addressed in the Supervisor's Functions section of the SystemAdministration manual
  • Before printing the General Ledger, the system will automatically check to see that all journals have been posted. If they have not been posted, you can escape from the program and post any unposted ledgers. If the system notifies you that the Payroll Journal and/or the Labor Distribution Journal is unposted, this will not need to be posted if it is actually for checks dated in the future period. After such a notification, if you answer "Y," to print the G/L, you can close without posting this Payroll Journal and /or the Labor Distribution Journal. After the Ledger has finished printing, you can close the period. If you do not wish to close the period at this time, you can [ESCAPE] from the General Ledger screen without closing the General Ledger for the period.In closing the General Ledger for the period, the current balances in the General Ledger are combined with the previous YTD balances, and reversing journal entries are set up for posting in the new accounting period. Any "next" accounting period data that has already been posted becomes the "current" accounting period data.
  • Deltek Insight 2012: Ready, Set, Close! Tips and Tricks for a Streamlined and Successful Month End Close

    1. 1. Ready, Set, Close!Stacey McCarver, DeltekGC- 471
    2. 2. AbstractThis Session will give you an overview of the monthly andannual closing processes. We will review the reconciliationsthat you should complete and what to do if something does notreconcile. We will provide a recommended closing checklist tohelp you stay on track, to ensure a successful close ontime, every time!2 © 2012 Deltek, Inc. All Rights Reserved
    3. 3. When is the best time to begin your month end processing? 3 © 2012 Deltek, Inc. All Rights Reserved
    4. 4. Plan the monthly accounting activities  Use a monthly planner  Accounting routines should be the same every month  Accounting period (Month or Four-week period)  After all transactions have been recorded and posted  Each company should develop a set of closing procedures4 © 2012 Deltek, Inc. All Rights Reserved
    5. 5. Month End CloseCheck List
    6. 6. Month End Processing Steps1. Post adjusting journal entries 9. Print final billing2. Post all journals worksheets, Unbilled A/R3. Allocate service centers Analysis4. Prepare billings 10. Print final job status reports5. Reconcile – 11. Make additional adjusting AP, Leave, Accrued Salaries journal entries and ZZZZ 12. Print financial statements6. Calculate indirect rates 13. Print Impromptu reports7. Compute costs and revenue 14. Back up data files8. Review financial statements 15. Close the accounting period6 © 2012 Deltek, Inc. All Rights Reserved
    7. 7. Step 1: Post Adjusting Journal EntriesMake any and all necessary adjusting journal entries  Review and update standard journal entriesAvoid journal entry adjustments to certain accounts  Some accounts, under normal circumstances, should never be adjusted by a journal entry  Labor accounts  Accounts Payable  Accrued Salaried  Billed and Revenue  These journal entries can cause a variance between the GL and subsidiary ledgers7 © 2012 Deltek, Inc. All Rights Reserved
    8. 8. Step 1: Post Adjusting Journal EntriesUtilize Recurring JournalEntries  Saves time and potential entry errors  Depreciation, Outsourced PR entries  Posted through the same process as regular journal entries8 © 2012 Deltek, Inc. All Rights Reserved
    9. 9. Step 2: Post All JournalsPost all journals  Use Test feature in the Print G/L*Close Accounting Period application to see which journals are unposted  Items identified with “*” can remain unposted9 © 2012 Deltek, Inc. All Rights Reserved
    10. 10. Step 2: Post All JournalsCut-off current periodprocessing  Turn off “Current Period Processing” in the General Ledger Control File  Ensures no new entries are added while you process the month  Leave AR, CT, and GL open  Once the current period is closed, the modules turned off are automatically turned back on10 © 2012 Deltek, Inc. All Rights Reserved
    11. 11. Step 2: Post All JournalsRun the GLReconciliation ReportDiagnostic toolidentifies the major out-of-balance situations  Trial Balance  G/L Summary to G/L Detail  G/L Summary to Labor Summary  G/L Summary to G/L Detail and Labor Summary11 © 2012 Deltek, Inc. All Rights Reserved
    12. 12. Step 2: Post All JournalsRun the GL Reconciliation Report  Trial Balance Option  Calculates the net balance of all of the accounts in the G/L Master File for the selected period(s)12 © 2012 Deltek, Inc. All Rights Reserved
    13. 13. Step 2: Post All JournalsRun the GL Reconciliation Report  G/L Summary to G/L Detail to Labor Summary Option  Compares the G/L Summary balance for each account to the G/L Detail File or the Labor Summary File13 © 2012 Deltek, Inc. All Rights Reserved
    14. 14. 14 12/11/2012 © 2012 Deltek, Inc. All Rights Reserved
    15. 15. Step 3: Allocate Service CentersNever prompted that there are “unallocated service centers”  Extremely important to allocate  Can affect revenue, billings, and indirect ratesService Center processing steps 1. Print the Service Center Cost report 2. Process Service Center Fringe Burden 3. Enter the usage on the Enter/Edit Service Center Usage screen 4. Calculate service center allocations 5. Print the Service Center Usage Report 6. Print the Service Center Journal and Post15 © 2012 Deltek, Inc. All Rights Reserved
    16. 16. Step 4: Prepare BillingsMust be performed here if Revenue = Billings  Otherwise, can be performed throughout the month-end process  Contract and Generic BillingsBilling processing steps 1. Compute contract Billings 2. Print and review Billing Worksheets 3. Make necessary adjustments in Billing Edit File 4. Select 5. Print Bills 6. Print Billing Journal and Post16 © 2012 Deltek, Inc. All Rights Reserved
    17. 17. Step 5: Reconciling – Accounts PayableReconcile Open Accounts Payable to the General LedgerConsider the top three causes of an out-of-balance situation  The Cash Disbursements Journal or the Voucher Distribution Journal has not been posted to the G/L  A journal entry or journal posting from a module other than Accounts Payable has been made to the A/P account  The date on one or more checks is in a different accounting period than the accounting period indicated when entering check information17 © 2012 Deltek, Inc. All Rights Reserved
    18. 18. Step 5: Reconciling – Accrued LeaveReconcile the Accrued Leave Report to the General LedgerConsider top three factors that are crucial to the reconciliation  Accrued Leave report timing  Utilize the report printed after the Payroll is posted for the last timesheets of the accounting period AND before any other Payroll Journals are posted  Increasing the leave liability to reflect pay raises  Print the Accrued Leave Report before entering pay raises  Reprint the Accrued Leave Report after entering pay raises  Take the difference between the two reports total balances to calculate the journal entry amount18 © 2012 Deltek, Inc. All Rights Reserved
    19. 19. Step 5: Reconciling – Accrued Leave (cont’d)Auto-Adjusted Timesheets  Leave taken is booked against the leave accrual account at a different hourly rate than the annual hourly rate at which it was accrued  A journal entry is required to adjust leave accrual and expense accounts with a journal  To identify the journal entry amount, review the charges to accrued leave each pay period19 © 2012 Deltek, Inc. All Rights Reserved
    20. 20. Step 5: Reconciling – Accrued SalariesReconcile the Accrued Salaries account  Always carries the value of the timesheets posted until payroll is posted  Problems occur when the labor cost amount from timesheets differs from gross pay in payrollPayroll Variance  Is part of the Payroll Journal  Keeps the Accrued Salaries account clean  Easily identifies the employees with cases of labor cost and gross pay differing20 © 2012 Deltek, Inc. All Rights Reserved
    21. 21. Step 5: Reconciling – Accrued SalariesCommon causes of a payroll variance  Manually changing gross pay on the Edit Payroll screen  Changing a salaried employees pay rate after entering the timesheet AND before creating the payroll  Not auto-adjusting a salaried employee’s timesheet  Issuing a paycheck without a timesheetExcess Life  Add amounts for life insurance premiums in excess of $50,000 per year to employees gross pay at least once per year  Always cause a payroll variance  Amounts do not appear on timesheets  A journal entry is required to move these amounts from the accrued salary account or payroll variance account and to the insurance clearing account21 © 2012 Deltek, Inc. All Rights Reserved
    22. 22. Step 5: Reconciling the ZZZZ-000-00 AccountGCS Premier provided suspense account  Utilized each time a posting is attempted against a missing account  Eliminates an out-of-balance posting  Keeps your ledger in balance  Simplifies recovery from a missing account situation  Important to review and analyze monthly  Print the G/L Detail Report  Issues are corrected via journal entries22 © 2012 Deltek, Inc. All Rights Reserved
    23. 23. 23 © 2012 Deltek, Inc. All Rights Reserved
    24. 24. Step 6: Calculate Indirect RatesProcessing steps vary based on pool structure  Co-Wide rates  Divisional rates  Inter-divisional allocations  Inter-pool allocationsMust be completed before revenue - if posting revenue at actuals orposting variances24 © 2012 Deltek, Inc. All Rights Reserved
    25. 25. Step 7: Compute Costs and RevenueCompute, compute, compute!Review Contract Revenue Summary ReportsUse JSRs for individual contract troubleshooting25 © 2012 Deltek, Inc. All Rights Reserved
    26. 26. Step 8: Tie-in Contract Reports to Financial StatementsTie Gross Profit on the Income Statement to Contract Fee onthe Revenue SummaryTie each Pool amount on the SIE to each pool amount on theIncome StatementTie Income Statement Revenue to the Contract RevenueSummaryTie Over/Under Applied (Cost Variance) on the IncomeStatement to the Contract Cost Summary  Only necessary if posting revenue with variances26 © 2012 Deltek, Inc. All Rights Reserved
    27. 27. Step 8: Tie-in Contract Reports to Financial StatementsTie Direct Labor from the Income Statement to  Direct Labor on the Contract Cost Summary  Direct Labor Base on the SIETie Direct Cost amounts on the Income Statement to theContract Cost SummaryTie Total Costs less G&A on the Income Statement to TotalG&A Base on the SIE  Subcontractor/Material Handling Pools considerations27 © 2012 Deltek, Inc. All Rights Reserved
    28. 28. Step 9: Unbilled AnalysisSuffix 12 in the GLUtilize the Billing Worksheet  Excellent tool to identify and analyze unbilled  Provides billed information on a line-item basisUnbilled Report is also available  Provides unbilled information pertaining to both the General Ledger and Billing modules  More useful for reconciling than for analysis28 © 2012 Deltek, Inc. All Rights Reserved
    29. 29. Step 10: Print Final JSRsExpedite the process, utilizing  Pre-Set Report Parameters  Report Groups  Batch Manager  Process Manager  Web Reports29 © 2012 Deltek, Inc. All Rights Reserved
    30. 30. Step 11: Make Additional Adjusting Journal EntriesAdditional entries should not affect revenue, billing, or indirectratesAdditional entries that may be needed  Federal Corporate Income Tax  State Corporate Income Tax30 © 2012 Deltek, Inc. All Rights Reserved
    31. 31. Step 12: Print Financial StatementsBalance Sheet Automated/paperless optionsIncome Statement  Batch Manager  Process ManagerF/S Code Summary  Output ManagerIndirect Expense Report  Web Reports and Processes  SendDirect Expense ReportTrend Reports31 © 2012 Deltek, Inc. All Rights Reserved
    32. 32. Final StepsStep 13: Print Impromptu reportsStep 14: Back up – Make an “end of month” backupStep 15: Close the period – Print the final General Ledger andClose32 © 2012 Deltek, Inc. All Rights Reserved
    33. 33. Step 14: Back up Data FilesBackup Data into new Folder  Create new Audit Folder (September 2012)  Ensure all users are exited from GCS Premier  Copy contents of Current Data Folder into New Folder (September 2012)Edit DTShared.ini for GCS to access Audit Data  Increase Count= line by one  Add new line: Name2=September 2012  Add new line: Path=GCS_ServerGCSDataSeptember_201233 © 2012 Deltek, Inc. All Rights Reserved
    34. 34. Step 15: Close Accounting PeriodCurrent balances in the General Ledger are combined with theprevious YTD balancesReversing journal entries are set up for posting in the newaccounting periodAny "next" accounting period data that has already beenposted becomes the "current" accounting period dataSetup Accounting period file is updated with new currentaccounting period34 © 2012 Deltek, Inc. All Rights Reserved
    35. 35. Annual ClosingProcesses
    36. 36. Annual Closing ProcessesFiscal Year CloseStandard Month End Close ProcessTiming of Audit DirectoryCalendar Year Close  Close the Accounts Payable Year  Close the Payroll Year  After ALL checks dated for current year have been posted  Before processing checks for the new yearPre-recorded webinars with Step by Step instructions are available on theDeltek Customer Care Connect - Year End Info Centerhttps://deltek.custhelp.com36 © 2012 Deltek, Inc. All Rights Reserved
    37. 37. 37 © 2012 Deltek, Inc. All Rights Reserved
    38. 38. Questions? www.twitter.com/deltek www.facebook.com/deltekinc www.linkedin.com/company/163414 www.youtube.com/user/deltekinc38 © 2012 Deltek, Inc. All Rights Reserved

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