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Project Month End Procedures: How to reconcile Project Ledger to the General Ledger and close the month?

How to reconcile Project Ledger to the General Ledger and close the month?

1. Freeze data entry and postings for each module that could impact pool cost or pool base for the month you are trying to process.  
   • This can be accomplished by setting the entry edit status to N in the accounting period setup for each available process.  
2. The pool rate calculations utilize the Financial-Statement_Sum table, while compute burden cost utilizes the GL_Post_Sum table.  
   • Run the toolkit in General Ledger Utilities called Update Financial-Statement Summary Balances, using Only the Fill Table option.  
   • If the Financial-Statement_Sum and GL_Post_Sum tables are not in agreement, rows will populate in the output window.  
   • If direct cost accounts are shown, then you have a situation where the base for the pool calculations is not the same number that the rates will be applied to when Compute Burden Cost takes place.  
   • If Financial-Statement_Sum is wrong, the indirect rates will be wrong; if GL_Post_Sum is wrong, Compute Burden Cost will apply the rates to the wrong base amounts. In either case, this would result in an incorrect rate\$ application into Proj_Sum and Proj_Burd_Sum, and would therefore affect revenue calculations and project reporting.  
   • If any rows appear in this screen, do Not automatically hit the Update button; instead, call Costpoint General Support immediately and ask for second-line support.  
3. Update 
   • Update the pool cost and base for any new account\organization combinations.  
     • If you need to remove accounts\organizations from a pool BASE, or change debit allocation accounts\organizations, refer to the separate document for changing a pool base, or call Costpoint General Support.)  
   • Once you've made all changes to your pool cost and pool base account\organization combination, run the Build Rate Application Table process.  
   • It is also recommended that you run the utility Check Pool Acct\Organization Setups. This will check the logic of your pool setup if you have made changes.  
   • Run Compute\Print Pool Rates.  
4. Tie Statement of Indirect Expenses (Statement of Indirect Expenses) to Income Statement (I\S) for both the costs and the base of each pool. 
   • If the primary I\S format does not lend itself to an easy tie-out, create a non-primary I\S with the appropriate detail to afford a simple reconciliation with the Statement of Indirect Expenses's. 
     • Make sure that the non-primary I\S ties in total to the primary I\S.
   • Do this reconciliation Before running Compute Burden Cost.
   • Tie out direct labor and Other Direct Charges (base of pool) to I\S.
   • Tie out burden costs (costs in pool) for all pools to I\S.
   • Possible reconciling items in the reconciliation of the Statement of Indirect Expenses to the I\S:
     • Work-In-Process items (on Balance Sheet instead of I\S); 
     • Items transferred to other pools, i.e., fringe amounts going to Overhead, General & Administrative;  
     • Make sure pool costs are complete - tie Financial-Statement Detail to Statement of Indirect Expenses accounts;  
     • Timing - make sure everything was posted prior to running Statement of Indirect Expenses, I\S.  
5. If you are posting revenue by performing organization, and you use redistribute revenue, make sure this is done and revenue is posted before you do any reconciliations to the I\S.  
   • If you are posting revenue by owning organization and posting costs to the performing organization, make sure you create and post the cost transfer Journal Entry, as well as the revenue redistribution, before you do any reconciliations to the I\S. This makes sure that the revenue summaries and the organization cost summaries tie to the financial statements by organization.  
     Note: If the above reconciliations (1 - 5) are performed each month when rates are calculated, but before burden and revenue are calculated, you could catch a number of your reconciliation issues before the extensive processing involved in compute burden cost, compute revenue, and the update\creation of report tables is even started. (As a result, you may be able to avoid re-running some or all of these time-intensive processes.) 
6. Run Compute Burden Cost.  
7. After Compute Burden Cost is run, and before calculating revenue and updating report tables, run the Project Ledger to General Ledger comparison in Projects\Cost & Revenue Processing\Utilities\Misc Toolkits. 
   • This will show any direct cost discrepancies between the General Ledger and the project ledger.  
   • Refer to the Special Topic on this toolkit in your Project manual for information on what steps to perform when prior periods are affected.  
8. Run Compute Revenue, Redistribute Revenue (if applicable), Update PSR Tables, and Create Project Report Tables. Post revenue.  
   • If posting revenue by owning organization and posting costs to performing organization, create and post the Cost Transfer Journal Entry.  
9. Perform the reconciliations shown below, after running Compute Burden Cost, Compute Revenue, Redistribute Revenue (if applicable), Update PSR Tables, and Create Project Report Tables.  
   • You should also have posted revenue, and (if posting revenue by owning organization and posting costs to performing organization) have created and posted the Cost Transfer Journal Entry. 
   • Income Statement to Project Revenue Summary Print Revenue Summaries by Owning Organization or Performing Organization, depending on how you post revenue.  
   • Print Income Statement (if printing comparison columns on I\S, remember to run Create GL Report Tables first).  
   • Reconcile total revenue.  
   • Be sure all revenue is posted, and that the Revenue Summary is printed at target or actual, however revenue was posted.  
   • Note that direct but unbillable projects will not show on the Revenue Summary. Possible reconciling items:  
     • Revenue summary not printed with same rates as revenue posted. 
     • Revenue summary printed by owning organization, but revenue posted to performing (or vice-versa); 
     • Company posts revenue to either performing or owning organization, depending on project, i.e., posting of revenue is not consistent throughout the company. In this case, you'll need to tie overall revenue totals to overall income statement totals. (I.e., print all reports at level one of the organization, if all organizations can be rolled up to a single level one organization. If this is not possible, you'll need to use the Reorganization feature to roll up the Income Statement, and use CP Reports to get a combined Project Revenue Summary.) (4)  
     • Timing - make sure revenue was posted before printing I\S.  
   • Statement of Indirect Expenses to all PSR's Print PSR by performing organization, to get one lump-sum PSR for each performing organization. Compare direct labor, project Other Direct Charges, and burden from the base and costs on the Statement of Indirect Expenses to the performing organization PSR's. Possible reconciling items:  
     • Items transferred to other pools, i.e., fringe amounts going to Overhead, General & Administrative;  
     • Work In Process project amounts; 
     • GL_Post_Sum and Financial-Statement_Sum are not in sync; 
     • Timing - make sure everything was posted prior to running Statement of Indirect Expenses, I\S.  
   • I\S to PSR's If posting revenue by performing organization, print PSR by performing organization at level of I\S, to get one lump-sum PSR for each performing organization.   
     • If posting revenue at owning organization, print PSR by owning organization at level of I\S, to get one lump-sum PSR for each owning organization. 
   • Print Income Statement (if printing comparison columns on I\S, remember to run Create GL Report Tables first).  
   • Compare direct costs, burden, and revenue from I\S to PSR's by organization. Possible reconciling items:  
     • Items transferred to other pools, i.e., fringe amounts going to Overhead, General & Administrative.
     • Work In Process project amounts (i.e., amounts moved from I\S to balance sheet for Work-In-Process jobs).
     • Cost Transfer Journal Entry not posted before printing Income Statement (if you are posting revenue to the owning organization and posting costs to the performing organization).
     • Incorrect base, bad rate application table, discrepancies between GL_Post_Sum and Financial-Statement_Sum. (If all previous steps have been followed, you should already have found and corrected these discrepancies.). 
   • Work-In-Process to Balance Sheet Print PSR's with Work In Process as the Grouping; tie out to balance sheet. Print Financial-Statement Detail, tie accounts to Work-In-Process PSR. Possible reconciling items:  
     • Debit allocation accounts set up for the Work-In-Process base accounts are linked incorrectly, i.e., linked to the Income Statement instead of to the Balance Sheet;  
     • Burden Cost was not recomputed after posting Cost of Goods Sold;  
     • PSR was printed using Project instead of Work In Process as the Grouping;  
     • General & Administrative presentation settings are not set up correctly in Project Settings.  
10. Tie out the Accounts Receivable Aging report to the Billed Accounts Receivable in General Ledger. Run the Unbilled Analysis report to make sure that the General Ledger and the project\billing tables are in sync for unbilled amounts.  
11. Other non-Project reconciliations: Open Accounts Payable to General Ledger, Accrued Leave Report to General Ledger, Outstanding Advance Report (Travel module) to General Ledger, Fixed Assets to General Ledger.