FreshByte recommends review and clean up of the system to ensure that the system is well maintained and accounts are in balance. Below are the best practices for maintaining the system.
Daily Procedures
The company must first establish procedures to manage the following areas/tasks:
- All Invoices are Shipped and Billed per the Route requirements. This requires that a designated user manage Unallocated Items throughout the day.
- Sales Orders are checked and dates are updated in the system – If a prior Sales Order is valid and will be shipped, the user should adjust the Shipping Date and Requested Delivery Date to the current date or a valid future date.
- Zero Dollar/Zero Line Sales Orders are Voided using the Database Utility ‘Void Sales Orders’
- Required Inventory Adjustments are performed
- Bank Deposits are posted and balanced
- All ‘due in’ Purchase Orders are received into FreshByte Software
- No Purchase Orders or PO Line Items are left open in the System with a date earlier than the current date. If the PO has a prior date and is still a valid order then the Scheduled Due Date should be updated to reflect the proper receiving date.
Weekly Procedures
The company must first establish procedures to manage the following areas/tasks:
Accounting
- Accounts Receivable Aging Report balances to the General Ledger A/R Account
- Accounts Payable Aging Report balances to the General Ledger A/R Account
- AP Suspense Report balances to the General Ledger Account. This report should also be managed to ensure that all Vendor Invoices are received and processed in a timely manner.
- Inventory Status Report balances to the General Ledger Account
Purchasing & Sales
- Run the Open PO Report to ensure there are no lingering Purchase Orders with a data earlier than the current date
- Run the Invoice Summary Report for ‘Open’ Sales Orders to ensure there are no lingering Sales Orders with a date earlier than today.
- Special/Promotional and Customer Pricing is updated as required
Inventory
- Perform Cycle Counts
Management Reporting
the company needs to discuss what types of reports management wants to view on a weekly basis in order to monitor Inventory Adjustments, Credit Reasons, Payment Adjustments, Sales Profitability and other sundry items. All of the required Reports are available in FreshByte Software.
Month-End Procedures
There are no firm Month-end Closing requirements in FreshByte Software. The company is not forced to have all AP Invoices, Cash Receipts and Sales Orders, etc. posted as of the last physical day of the month; however, FreshByte recommends that the company reviews and validates the following prior to closing any fiscal period:
- Ensure the Accounts Receivable Aging Report balances to the General Ledger A/R Account
- Ensure the Accounts Payable Aging Report balances to the General Ledger A/R Account
- Ensure the AP Suspense Report balances to the General Ledger Account. This report should also be managed to ensure that all Vendor Invoices are received and processed in a timely manner.
- Ensure the Inventory Status Report balances to the General Ledger Account.
- Finalize all Bank and Credit Card Reconciliations
- Enter all Payroll Related Entries including 401K accruals, employee insurance payments, child support deductions, etc.
- Enter all monthly accruals as provided by your CPA
- Ensure there are no open Purchase Orders, open Add-on Purchase Orders or open Sales Orders. FreshByte Software will display a warning when attempting to close the period if any of the above remains open. If the message appears, the user must cancel closing the period and either process, void or change the date of those items to contain a date within the current fiscal period.
- Close the fiscal period. After closing the period, FreshByte Software will display a message asking the user to run the General Ledger for the selected period. *This is a very important step. When the user runs the GL for the closed period, FreshByte Software stores the calculated figures which will remain unchanged until the period is reopened.
- Print the Income Statement, Balance Sheet and Trial Balance in electronic format for future reference.