Procurement Month-End Processing

1. Procurement Month-End Processing Joan Watson, Sr. Product Manager SCM SCM08

2. Presentation Overview • Procurement Closing Sequence • Procurement Closing Programs • Common Error Messages • Additional Documentation • Questions/Answers

3. Procurement Closing Sequence

4. Procurement Closing Sequence – Alternate Sequence

5. Procurement Closing Sequence Keys to Success • IC130 MUST be run after AP175 at month end to post the invoice cost adjustments for inventory items • PO must be closed before IC if using system control • Timing is everything!

6. Requisitions No required closing programs Recommended programs: WH222 – Shipments in Process • Identifies shipments not finished & released PO134 – Receiving Delivery and PutAway • Closes requisitions for purchase order related receipts, where the Delivery and PutAway ticket was not printed at the time of receipt

7. Purchase Order IC130 – General Ledger Interface • Posts receipts, receipt adjustments, and invoice cost variances for inventory items PO230 – Unreleased Receivings Listing (optional) • Lists unreleased PO receivers PO33 – Receiving Adjustment (optional) • Select on the adjustment document number and choose unreleased adjustments

8. Purchase Order continued PO135 – Received, Not Invoiced Report • Reports inventory receipts not invoiced • Posts receipts for non-stock and special items not invoiced Note: PO199 parameters determine whether PO135 must be run in update mode before closing PO

9. Purchase Order continued MA180 – Open Receipt Archive (optional) • To write off or archive receipts if no invoice is expected Inventory Items: • Debit = PO Accrual (RNI) • Credit = Receipt Write-Off Non-stock and Special Items: • Debit = PO Line Account • Credit = Receipt Write-Off Note: Posting for N/X optional in 8.1

10. Purchase Order continued PO136 – Matched, Not Received (optional) • Lists/posts I, N, and X type PO lines that have been matched using MA61, but not received yet Inventory Items: • Debit = Match Write-Off Account • Credit = Matched, Not Received (MNR) Account Postings for Inventory Items Only! Note: Original invoice would have posted: • Debit = Matched, Not Received (MNR) Account • Credit = AP Accrual

11. Purchase Order continued MA236 – Invoiced, Not Received Report (optional) • Reports purchase orders where the approved quantity is greater than the received quantity PO190 – History PO Report / Close Purchase Order Header • Closes purchase orders PO199 – Subsystem Close (conditional) • Only required when using system control

12. Accounts Payable AP170 – Payment Closing • Posts payment distributions AP175 – Invoice Distribution Closing • Posts invoice distributions EE175 – Company Expense Posting • Posts company-paid expense distributions • Can be posted by AP175, based on setup

13. Accounts Payable continued AP176 – Match Discount Accrual (conditional) • Accrues discounts that were taken during the match process • Required at month end if you have selected “MATCH” as the Discount Recognition field for your Match Company on MA01.1 • Creates the following postings: • Debit AP Liability Account on the invoice • Credit Discount Accrual Account defined on the Match Company

14. Accounts Payable continued AP190 – Invoice Reinstatement • Reinstates invoice after voided payment and reverses cash postings AP191 – Unrealized Gain/Loss • For non-base currency invoices only AP195 – Period Closing (conditional) • Only required when using system control

15. Cash Book CB175 – Bank Transaction Posting • Posts cash ledger transactions to the general ledger Optional Programs: CB190 – Bank Period Close CB191 – Bank Statement Close CB195 – Company Period Close

16. Inventory Control IC222 – Unreleased Documents • Lists IC documents that have not been released IC130 – General Ledger Interface • Posts receipts, receipt adjustments and invoice cost variances for inventory items • Uses Post Date

17. Inventory Control continued IC190 – Closing • Verifies that all IC transactions have been released and posted to the general ledger, then updates the IC Calendar and IC History records • Uses Trans Date IC199 – Subsystem Close (conditional) • Only required when using system control

18. ERROR PO135 – “Can not update period * not current period” PO199 – “Receiving must be posted for current period” RESOLUTION GL for the previous period not closed; close GL period Run IC130 to post inventory receipts Purchase Order Errors

19. ERROR AP175 – “Unposted transactions exist; Period is not closed” AP195 – “Unposted payments exist” AP199 – “Calendar year not yet finished” RESOLUTION Run AP175 to post transactions Run AP170 to post payments Last Date in AP00.1 is greater than system date Accounts Payable Errors

20. ERROR IC190 – “Released transactions exist” IC190 – “Unreleased transactions exist” RESOLUTION Run IC130 with a future date Release transactions and run IC130 to post Inventory Control Errors

21. Additional documentation • Various documents are available as follows • http://support.lawson.com • Release Notes • User Guides: • Inventory Control User Guide Appendix E • Purchase Order User Guide Appendix A • Knowledge Base Articles & Fact Sheets: • What is the Month-End Closing Process (79180) • Received Not Invoiced (RNI) Processing (68648) • Matched Not Received (65501)

22. Thank You!