Accounting

Period-End Closing

Monthly Closing Checklist

1. Reconcile All Bank Accounts - Match every bank statement line. Book balance should equal bank balance.
2. Reconcile AR/AP - Match all payments to invoices. Unreconciled items should be investigated.
3. Verify Tax Report - Ensure tax amounts match invoices/bills posted this period.
4. Review Trial Balance - Check for unbalanced entries, suspense accounts, or unusual balances.
5. Depreciation - Run depreciation entries for fixed assets.
6. Deferred Revenue/Expenses - Post deferral entries if using this feature.
7. Adjusting Entries - Post accruals, prepayments, and corrections in the Miscellaneous journal.
8. Generate Financial Reports - P&L, Balance Sheet, Cash Flow. Review with management.
9. Lock the Period - Set lock dates to prevent changes (see below).

Lock Dates

Lock dates prevent posting entries in closed periods. Set in Accounting > Configuration > Settings → "Lock Dates" section.

• Fiscal Year Lock Date - No changes allowed before this date for any user.
• Period Lock Date - No changes allowed before this date for non-accountant users. Accountants still have access.
• Journal-Specific Lock Dates - Set different dates per journal.

Fiscal Year-End Closing

1. After the year-end P&L is finalised, post closing entries:
• Zero out temporary accounts (revenue, expenses).
• Transfer net profit/loss to Retained Earnings.
2. Quickenerp does not auto-close the year - you create closing entries manually or via a script.
3. After closing, set the Fiscal Year Lock Date to the last day of the closed year.
4. New fiscal year starts with opening balances carried forward.

Audit Trail

Accounting > Reporting > Audit Trail shows every posted entry with:

• Entry number (sequential).
• Date and time posted.
• User who posted.
• IP address.
• Journal and reference.

Regularly review the audit trail to ensure data integrity. Export for external auditors.

Best Practices

• Close each month within 10 business days of month-end.
• Lock periods promptly to prevent accidental changes.
• Run the Trial Balance before and after closing to verify accuracy.
• Maintain a closing checklist document and track completion.
• Use the chatter on journal entries to document adjustments for future reference.

Journals in Quickenerp

A journal groups similar types of transactions. Each journal has a default account and a numbering sequence. Go to Accounting > Configuration > Journals.

Journal Types

Journal Configuration Fields

• Journal Name - "Customer Invoices", "Vendor Bills", "Main Bank Account".
• Type - Determines available features (invoice creation, payment registration, etc.).
• Short Code - Abbreviation used in entry names (e.g. INV for Sales Journal).
• Default Account - The main account this journal posts to (e.g. AR account for Sales journal, Bank account for Bank journal).
• Sequence - Numbering: prefix + automatic number (e.g. "INV/2026/0001"). Each journal can have its own sequence.
• Entry Posting Mode - "Draft & Post" (entries draft first) or "Post Directly" (no draft state).
• Lock Date - Prevent posting entries before this date. Useful after closing a period.
• Currency - For multi-currency journals (e.g. USD Bank Account, EUR Bank Account).
• Payment Methods - Which payment methods are available in this journal (Manual, Check, SEPA, etc.).

Creating a New Journal

1. Go to Journals → Create.
2. Enter Name (e.g. "EUR Current Account").
3. Select Type (Bank).
4. Set Short Code (e.g. "BNK-EUR").
5. Select the Default Account (the bank account in the chart).
6. Choose sequence or let Quickenerp auto-create one.
7. Set the currency to EUR.
8. Save.

Journal Entries (General Ledger)

Each posted journal entry is visible in Reporting → General Ledger. Key fields:

• Journal Entry Number - Auto-assigned from sequence.
• Date - Entry date. Must be within open fiscal periods.
• Reference - Invoice/bill number or payment reference.
• Lines (Debit/Credit) - Must balance: sum of debits = sum of credits.
• Partner - Customer or vendor. Enables AR/AP reporting.
• Reconciled? - Green checkmark if fully reconciled.

Recent Journal Improvements

• Journal Dashboard - Each journal shows a mini-dashboard with total debits/credits, last entry date, and reconciliation status.
• Per-Journal Lock Dates - Set different lock dates for different journals (e.g. lock Sales journal earlier than Bank).
• Journal Grouping - Group related journals for consolidated reporting.

Vendor Bills

Vendor bills record money you owe to suppliers. Go to Accounting > Vendors > Bills.

Bill Form Fields

• Vendor - Select supplier. Pre-fills addresses, currency, payment terms.
• Bill Date - Date on the vendor's invoice.
• Due Date - Auto-calculated from payment terms.
• Vendor Reference - The vendor's invoice number. Important for matching.
• Bill Lines - Products/services purchased. Each line: description, quantity, unit price, taxes, accounts.
• Journal - Defaults to Purchases journal.
• Fiscal Position - Auto-detected for correct tax treatment.

Three-Way Matching

When integrated with Purchases and Inventory, Quickenerp supports three-way matching:

1. Purchase Order - What was ordered.
2. Receipt - What was received (inventory validation).
3. Bill - What was invoiced.

Quickenerp flags discrepancies: billed quantity vs received quantity, billed price vs PO price. Enabled in Settings → "Three-Way Matching".

Creating a Bill

1. Go to Bills → Create.
2. Select vendor. Verify dates.
3. Enter vendor reference (their invoice number).
4. Add lines. For tracked products, enter quantities received.
5. If a purchase order exists, click "Add from Purchase Order" to auto-fill lines.
6. Click Confirm to post the bill.

Vendor Credit Notes

Create from a posted bill: Open bill → Add Credit Note. Same process as customer credit notes but in reverse - reduces AP and reverses the expense.

Paying Bills

1. Go to Accounting → Vendors → Payments → Create.
2. Select vendor, payment method, bank journal, amount.
3. Optionally select specific bills to pay (full or partial).
4. Validate. Payment is posted and reconciled with the bills.