1. Arbela Technologies Confidential arbelatech.com Best Practice for Month End & Year End Close

2. Arbela Technologies Confidential Introductions  Raymond Abouarab, Arbela Technologies  Senior Financial Consultant  Raymond@arbelatech.com Raymond@arbelatech.com Arbela Technologies Confidential arbelatech.com

3. Arbela Technologies Confidential  Founded in 2002 by ERP & Supply Chain Veterans.  Leading Microsoft Gold Certified Partner Since 2004.  Headquartered in California with Offices in Georgia, United Kingdom, & Denmark.  Specialize in Large, Complex, Multi-company Implementations (Multi-currency, Multi-site, Multi-language, & Shared Services).  Extensive Industry Knowledge in Retail, Distribution, & Manufacturing.  Offer Full Dynamics AX & CRM Implementations, Upgrades, Audits & Development.  Security, Compliance, & Auditing Solution for Dynamics AX 2009 & 2012.  Centralized Master Data Capability & Consolidation Solution for Dynamics AX 2009 & 2012. Analytics EnterpriseResourcePlanning SupplyChainManagementCustomerRelationshipManagement E-Business About Arbela Arbela Technologies Confidential arbelatech.com

4. Arbela Technologies Confidential Awards/Recognition Arbela Technologies Confidential  Microsoft Gold Certified in Enterprise Resource Planning Since 2004  Microsoft Competency Award Winner  Listed as Orange County Fastest Growing Company by OCBJ in 2014  CIO Magazine Listed Among Top 100 Most Promising Companies 2014  OC Tech Alliance Outstanding Company Semi-Finalist 2014 arbelatech.com

5. Arbela Technologies Confidential Clients Arbela Technologies Confidential arbelatech.com

6. Arbela Technologies Confidential Month End Close  General Ledger – module access restriction and reconciliation reports  Accounts Receivable – Detail due day list report, Currency revaluation (optional) and A/R aging reports  Accounts Payable – GRNI report, vendor detail due day list report, Currency Revaluation, and A/P Aging Report  Bank reconciliation  Fixed Assets  Inventory Management – Inventory Value Report  Sales tax Year End Close Closing Books Agenda  If you complete all Month End correctly, closing the year is an easy process.  Verify the closing options in Parameters  Create a new fiscal year  Print Financial Statements (MR/Atlas)  General Ledger – Opening Transactions  Back up your legal entity’s data  Note: the closing sheet is optional, and we know of nobody that’s actually using it arbelatech.com

7. Arbela Technologies Confidential Month End Close – Check List  Module Access restriction in General Ledger  Accounts Receivable module  Accounts Payable module  Cash Bank Management – Bank Reconciliation  Fixed Assets  Inventory Management  Sales Tax  Print TB and Financial reports Note: Month End is prerequisite for consolidation esp. the F/X adjustments for A/P and A/R arbelatech.com

8. Arbela Technologies Confidential  Module Access restriction in General Ledger  General Ledger > Setup > Ledger, on the menu tab, click on the “Ledger Calendar”  Restrict users other than the Month End user group from posting transactions in the period  Post all open journals Month End Close – General Ledger arbelatech.com

9. Arbela Technologies Confidential  Post all open journals  Run reconciliation reports – General Ledger to all modules  General Ledger  Reports  Reconciliation Month End Close – General Ledger arbelatech.com

10. Arbela Technologies Confidential  Run the Detailed due day List report  Accounts Receivables  Reports  Status  Detailed due day list  The report will display all open customer invoices, Free text invoices, Credit Notes, Unsettled payments … Month End Close – Accounts Receivable arbelatech.com

11. Arbela Technologies Confidential  Foreign Currency Revaluation  Accounts Receivable  Periodic  Foreign Currency Revaluation  Update the exchange rate value in GL prior of processing the revaluation  Run Simulation prior of running the Foreign Currency Revaluation  Note: this is only applicable if the legal entity operates with multiple currencies Month End Close – Accounts Receivable arbelatech.com

12. Arbela Technologies Confidential  Print the AR Aging Report and reconcile the total to your A/R trade Account in your Trial Balance  Accounts receivable  Report  Status  Customer Aging  In case of discrepancies, run the Reconciliation report in GL for your customers and check “differences only”  General Ledger  Reports  Reconciliation  Customer  Customer Month End Close – Accounts Receivable arbelatech.com

13. Arbela Technologies Confidential  AP Accrued purchases (GRNI report)  Procurement and sourcing  Report  Status  Accrued Purchases.  The accrued purchases report would be the one that would reconcile with your accrual account from the inventory posting profiles Month End Close – Accounts Payable arbelatech.com

14. Arbela Technologies Confidential  Vendor Detail Due Day List report  Accounts Payable  Report  Status  Vendor Detail Due Day List  Run the Due date report to view all the open vendor invoices and the unsettled amounts.  Note: this report is only available for legal entities in the US and CA, to obtain this report for other legal entities add the country code in the AOT for the report to become available. Month End Close – Accounts Payable arbelatech.com

15. Arbela Technologies Confidential  Foreign Currency Revaluation  Accounts Payable  Periodic  Foreign Currency Revaluation  Update the exchange rate value in GL prior of processing the revaluation  Run Simulation prior of running the Foreign Currency Revaluation  Note: this is only applicable if the legal entity operates with multiple currencies Month End Close – Accounts Payable arbelatech.com

16. Arbela Technologies Confidential  Print AP Aging Report and reconcile the total to your A/P trade Account in your Trial Balance  Accounts Payable  Reports  Status  Vendor Aging  In case of discrepancies, run the Reconciliation report in GL for your vendors and check “differences only”  General Ledger  Reports  Reconciliation  Vendor  Vendor Month End Close – Accounts Payable arbelatech.com

17. Arbela Technologies Confidential  Run standard bank reconciliation  Or run the advance bank reconciliation by importing bank statements.  White paper on advance bank reconciliation is available on partner/customer source  http://www.microsoft.com/en- us/download/details.aspx?id=39090 http://www.microsoft.com/en- us/download/details.aspx?id=39090  Note: This is not a month end requirement, we just need to reconcile the totals to your GL - You most likely won’t have your bank statement Month End Close – Cash Bank Management arbelatech.com

18. Arbela Technologies Confidential  Record depreciation (depreciation proposal), acquisition, disposals of fixed assets.  Run the Fixed Assets transactions report  Fixed Assets  Reports  Transactions  Fixed Asset Transactions  Run the fixed asset balances report  Fixed Assets  Reports  Periodic  Fixed Asset Balances Month End Close – Fixed Assets arbelatech.com

19. Arbela Technologies Confidential  Run the Inventory Value Reports to reconcile all your WIP, COGS, Deferred COGS, and Inventory  Inventory management  Reports  Status  Inventory Value  Inventory Value  Note: the reports require setup in the inventory value reports in setup  Inventory management  Setup  Inventory  Inventory value reports Month End Close – Inventory Management arbelatech.com

20. Arbela Technologies Confidential Sample Report – Reconciliation by item group arbelatech.com

21. Arbela Technologies Confidential  Inventory close is a very important part of the month end close even with standard cost  Inventory management  Periodic  closing and adjustment, click on close procedure drop down arrow and select “close” Month end close – Run inventory close arbelatech.com

22. Arbela Technologies Confidential  Run the sales tax payment / posting  General Ledger  Periodic  Sales tax payments  Sales tax payments  NOTE: if you do check the “update Box”, the sales tax payment will be posted for this period.  If you do not chose update but chose to accumulate sales tax – you have to post the payment manually to sales tax authorities. Month End Close – Sales Tax arbelatech.com

23. Arbela Technologies Confidential  Print Trial Balance detailed or summary reports.  General Ledger  Reports  transactions  Groupings  Detailed trial balance or Summary trial balance  Use your Financial report writer to print you financial statement (Management reporter or Atlas) Print TB and other financial reports arbelatech.com

24. Arbela Technologies Confidential  Best practice is to have the “delete close-of-year transaction during transfer” and “Voucher number must be filled in” checked  The “create closing transactions during transfer” and “set fiscal year status to close” not checked Year End Close – General Ledger Parameters arbelatech.com

25. Arbela Technologies Confidential  Create a new fiscal year to post the opening transactions and prepare for the new year  General Ledger  Setup  Fiscal Calendar Year End Close - Create a new Fiscal year arbelatech.com

26. Arbela Technologies Confidential  This process will move balance sheet ending balance to opening balance for next fiscal year and reset profit and loss accounts to zero, posting result to retained earnings.  General Ledger  Periodic  Fiscal year close  Opening Transactions Year End Close – Opening Transactions arbelatech.com

27. Arbela Technologies Confidential Questions? arbelatech.com Raymond Abouarab, Arbela Technologies Senior Financial Consultant Raymond@arbelatech.com