Transaction Month

July 17, 2014 in Library

There are various transactions in the Accounts Payable and Cash Management module that ask for a transaction month.

The entry of a transaction month determines which accounting month the transaction being processed will post to in the General Ledger. Having the option to post a transaction into the current or next month allows you to leave your Accounts Payable ledger open longer than your Debtors/Sales/Stock ledgers. Often you have not received details of all the Payables transactions by the last day of a month, and so you want to be able to process the final transactions for the “open” (current) month whilst also processing any of the next months transactions as they are received. Having this facility means you are not creating a backlog of processing while waiting for the current month to be finalised and closed.

There are specific ledger reports in both Accounts Payable and Cash Management which list ledger totals/movements into “Current Month” and “Next Month” columns. These can be used when performing a reconciliation of the transactions comparing the General Ledger to the Payables and Bank Ledgers.

To choose between current and next month, you will, of course, need to know which month is the current month. Most transaction functions show the current open fiscal period at the top of the screen. To save you effort, the system defaults the current/next month option by calculations based on the transaction date entered. For example, a transaction date in or before the calendar month of the current open month defaults to “Current”, whereas a transaction date for a future month defaults to “Next”.

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