Compiere Year/Month End Process

Preface

Intended Audience

This document should help the financial departments of companies/locations using Compiere to fulfill the monthly and yearly processes needed to ensure the accounting data is posted and completed correct before closing a period. The process will be adjusted based on the day to day findings of the financial consultants helping Compiere users in closing there financial data.

Document Feedback

Any type of comment/suggestion to this documentation should be send to Yves Sandfort, so that it can be encorporated into this document.

Abbreviations Used in Figures

Document history / status

Compiere Accounting Engine

The Compiere ERP+CRM Application using a tool called Accounting Processor to post the financial consequences of each document. As Compiere has the ability to work with Multiple Accounting Schema as well as Multiple Calendars this documentation might need to be adjusted to each users specific need.

Multiple Accounting Schema If you have Multiple Accounting Schema it is necessary that you follow the processes for Year/Month end for each Accounting Schema

Depending on your setup the Accounting Processor is run automatic or manual for your System, it is best practice to ensure your System uses an automatic accounting processor.

Steps in the Month End/Year End Process

Step 1: Check the Accounting Processor is running

Open the window "Accounting Processor" in Compiere:

You should check that a regular Schedule is set, from best practice even for large systems we would encourage you to set it not bigger than 15 minutes. Also you should check the "Date last run" and "Date next run" fields, those contain vital information if the processor works. If something doesn't work as expected please contact your IT department for a check up.

Look into the Log of the latest run and check if the log shows any error (i.e. "Cannot Lock"), if any issues are shown you should first try to run "Resubmit Posting" and recheck the log if the issues are fixed. If still issues are shown you need to check back with your Compiere Support.

Step 2: Check the UnPosted Documents

Open the window UnPosted Documents in Compiere:

You might need to resort by Account Date, ideally it should not show any document unposted in the Year/Month you are trying to close. If records are shown in this screen you need to manually check them by clicking the edit icon , which will guide you to the Detail Screen:

This screen does not tell you why the transaction is not posted, so you will need to click "Record Zoom" which will guide you into the detailed record.

Reasons for a document to be known unposted *1:

Status / Info	Description / Solution:
Document Status: Draft	The document has never been completed, which causes Compiere to not post it. Solution would be depending on the reason to a) Complete the document or b) delete the document if it is no longer needed
Document Status: Invalid	If the document is invalid you might need to check for the reason, there is no general rule on why it is invalid and it might be hard to resolve, so please check back with your Compiere Support
Document Status: In Progress	The document is not completed yet, you will need to check why it has not been completed, which is mostly based on any changed/automated process. You can try to press "Complete" and see if it can manually complete, if not you should check back with your IT-Department/Compiere Support on the specific document
Period Closed	You are trying to complete / post a document in a period which has been closed, but the document is of status "Complete". This is and should be a rare situation, as normally the system will prevent the "Complete" of a document in a closed period. Easiest solution is to reopen the appropriate period for that type of document, post and close the period. However this might affect other data, so it might be necessary to check back with your Compiere Support what is best in this case.

Before you continue with Step 3 please ensure that no UnPosted Documents are left, or that you have a good and more important documented reason to leave the Document UnPosted

Step 3: Check Currency Rates:

Open the Currency Rate Screen in Compiere:

Please ensure that the Currency Exchange Rates you use are all setup with the correct amounts for the specific periods. If you need to make changes here, you will be enforced to run "Reset Accounting" which would cause a complete repost of all documents in your system. Such a step is dramatic, but might be necessary to fix any incorrect Accounting Consequences from fault Currency Rates.

Step 4: Unallocated Payments

Generate the Unallocated Payments from Compiere:

As this report is purely document based we would encourage you to use the AP/ARSum Reports from the Pentaho BI Integration. Ideally all Payments should be allocated by the end of month / period, as this ensures a realistic Open Items Report as of next Step. If you can not clear out the AP/AR Sums by Business Partner

Step 5: Open Items PrintOut

Create a Print of the OpenItems as of the current status in Compiere, remember this reflects the current status, i.e. it can not be run to a specific date. If you are using the comdivision Compiere Pentaho Integration you can also at a later point in Time run the Open Items Report from there, which should balance against your customer and vendor ledger accounts.

Step 6: Check Account Balances

Step 7: Create Trial Balance

You should finish up the Month/Year End proces by generating a Trial Balance Printout either from Compiere or Pentaho BI Server.

Step 8: Printout the Month/Year End report:

Once you have completed Step 1-6 you should print the Month or Year End Process, which should be signed by the responsible person in your Finance Department. The Month/Year End Process Report should be kept as a essential financial document and should be filed for later reference by an internal or external audit.

Step 9: Close Period(s)

Open Calendar Year and Period screen:

Depending on whether you close a month or year you need to enter the appropriate periods and close each of the affected periods. If you Permanently/Finally Close a period it can NOT be reopened, so you should only Close a period, without using Permanent/Finally.

Notes/Footprints