This topic is intended as a checklist for month-end closing procedures in Q360.

Month-end closing procedures are driven by workflow processes and queues. This information helps to identify all work areas and tasks to be performed and completed on a monthly basis.

Warehouse

Task	Month-End Significance	Notes
Receive POs	– Allows shipping – Allows vouchering – Sets up COGS to be recognized for drop-shipped POs
Pick and ship equipment / materials from inventory	Sets up COGS to be recognized	Complete before month-end[1]
Receive RMAs	Recognizes reduction of COGS	Complete before month-end

Accounts payable

Task	Month-End Significance	Notes
Voucher POs	Allows posting vouchers	Requires receiving the POs
Create manual vouchers	Allows posting vouchers
Generate vouchers from recurring POs	Allows posting vouchers	Requires having set up recurring POs including recurring vendor invoices generators
Post vouchers	Recognizes non-equipment or material costs including purchase price variance (PPV)

Accounts receivable

Task	Month-End Significance	Notes
Post Projects COGS	Recognizes COGS and revenue on deferred revenue projects	– Requires having shipped materials and equipment – Can be automated nightly
Post Projects Revenue	Recognizes revenue on deferred-revenue projects based on COGS recognized above	– Requires having recognized COGS (above) – Can be automated nightly- Revenue can be backdated as of appropriate month end while COGS cannot, hence the need for timely shipments
Bill and post project invoices	– Allows cash receipts – Recognizes COGS and revenue on projects that do not defer revenue[2]
Bill and post calls invoices	– Allows cash receipts – Recognizes COGS and revenue
Bill and post shipped order invoices (i.e., equipment-only “box” sales)	– Allows cash receipts – Recognizes COGS and revenue
Bill and post recurring service contract invoices	– Allows cash receipts – Recognizes revenue on non-deferred or monthly-billed contracts- Starts cycle on revenue-deferred contracts	Can be automated nightly

Time bills

Task	Month-End Significance	Notes
Post time bills	Recognizes labor cost for projects, service calls, or pre-sales opportunities	A time bill’s start date is used for JE posting

Recurring revenue and expenses

Task	Month-End Significance	Notes
Post Service Revenue	Recognizes portion of revenue for service contracts with on-going revenue deferral	If a contract is billed monthly, revenue is deferred and recognized in the same month
Post Pre-Paid Expense	Recognizes portion of expense for posted vouchers with pre-paid expense item	Includes pre-paid overhead expenses and ones related to cost of ongoing service contracts
Run Asset Depreciation	Recognizes depreciation expenses

Reconciliation

Task	Month-End Significance	Notes
Write manual journal entries	Rounds up any other changes in accounts that are not recorded through JEs generated by Q360	Includes manual depreciation, payroll accruals, clearing account adjustments, bank charges, misc. charges and income
Reconcile bank accounts	May alert you to movements in accounts that are not reflected in Q360 or on your bank statements
Reconcile Q360-controlled balance sheet accounts	Any significant discrepancy may indicate an underlying issue that caused your P&L or balance sheet accounts to be over or understated	Use Month End Reconciliation form. See next section for more information.
Reconcile all other balance sheet accounts		Similar to the above, but targets non-Q360-controlled balance sheets accounts that you manage to keep reconciled with a subledger such as running your own depreciation cycle

Month End Reconciliation form

The Month End Reconciliation form provides a comparative analysis of your general ledger accounts to respective subledgers. This form should be reviewed regularly throughout the period to identify user procedural errors resulting in differences and requiring investigation and correction. Differences should be corrected via procedural processes and/or accounting adjustments.

Financial reporting

We recommend going through the above month-end closing tasks before producing any financial report.

Refer to the Financial Reporting document for more information.

Closing fiscal period

Once financial reports are deemed accurate, you may close (lock) the fiscal period. Do not close your fiscal year until your final audit adjustments have been recorded for final changes for your financial statements/reports. Periods can be re-opened as many times as needed for finalizing financial results, but note that once the year is closed, you cannot re-open it. Refer to the Fiscal Calendar document for more information on closing a fiscal period or year-end.

[1] All equipment and materials that need to be costed in a month or period must be marked as shipped before next month’s business operations starts. When equipment/materials COGS are recognized, the costs will be matched with revenues earned in that period. For this reason, such COGS entries cannot be backdated.

[2] Most projects you run in Q360 will not be applicable to this scenario. Instead, they will be deferred-revenue projects. The Project form Profit tab includes a checkbox that indicates whether a project defers its revenue. This is enabled by default and once a project is active with data, it cannot be altered.