This guide covers the month-end closing process and bookkeeping reconciliation. 

Contents

 

1. Check processes

Open Sales > Invoicing > Sales invoice list.

  1. Select extended search.
  2. Set the search criterion to "Invoice date" and select the month to be closed.
  3. Select "Status" > "Unsent".
  4. Run the search.

Make sure that all sales invoices have been printed or sent.

Save the search for future months.

  1. Tick "Save changes".
  2. Give the search a name.
  3. Press "Save and search".

You can display the report in the homepage quick links widget.

If invoices appear in the result set, print or send these invoices so that a bookkeeping voucher is generated for them.

Check that all sales payments for the month have been recorded.

Open Sales > Invoicing > Payments and select extended search.

  1. Limit the search to the month to be closed.
  2. Select "Unprocessed" payments as the filter.
  3. Run the search.

Process and allocate all unprocessed payments so that bookkeeping vouchers are generated for them.

Check that all purchase invoices for the month have been processed and posted.

Open Purchases > Purchase invoices > Purchase invoice list.

  1. Limit the search to the month to be closed using the "Invoice date" field.
  2. Select "Invoice status" = "Unposted".
  3. Run the search.

Post all unposted invoices so that a bookkeeping voucher is generated for them.

  • If the invoice is new, post the invoice, verify it and make sure that a voucher is created after this.
  • If you post a verified invoice, approve the invoice after posting so that a voucher is created.
  • If the invoice is approved, posting will directly create the voucher.
  • If the invoice is approved and in "pre-posted" status and the posting is not visible, return the invoice to unprocessed, post it and approve it again so that the voucher is created.

Check that all payments for the month have been processed.

Open Purchases > Payments > Payment listing.

  1. Limit the report by the target month dates.
  2. Select "Show payments missing a voucher or invoice" as the filter.
  3. Run the search.

Check that all bank statements for the month have been processed.

Open Financial management > Bookkeeping > Bank statements.

  1. Select the year.
  2. Select the month.
  3. Select all accounts.
  4. Press "Search bank statements".

Reconcile bank statements in the bank statement view.

  • The system compares the ending balance of the bank statement to the balance of the corresponding bank account in the bookkeeping account as of the last day of the bank statement.
  • If the bank statement and the corresponding bank account in the bookkeeping account match, the difference is 0.00 euros.

If there is a difference between the bank statement and the bookkeeping account balances, you can clearly see the difference in the "Difference" column.

Find the differences in the bookkeeping.

  1. Open Financial management > Bookkeeping > Voucher listing.
  2. Limit the report to the bank account in the bookkeeping account and the bank statement period.
  3. Compare the result set to the bank statement transactions.
  4. Correct incorrect transactions and add missing transactions.

If the bank statement is a weekly or monthly statement, you can also limit transactions by day to make it easier to find differences. The most common errors are incorrect date, incorrect bookkeeping account or missing/duplicate entry.

2. Distinguishing vouchers

Open Financial management > Bookkeeping > Voucher listing.

  1. Limit the search to the month to be closed.
  2. Select "Show only distinguishing vouchers".
  3. Run the search.

Process the distinguishing vouchers shown in the listing.

  1. Identify the vouchers highlighted in red.
  2. Open the voucher by clicking the voucher number.
  3. Select "Voucher-specific actions" > "Open in edit mode".
  4. Make the necessary corrections.
  5. Save the voucher.

If the voucher is dependent on accounts receivable/payable events or a bank statement, do not correct the amounts of incorrect accounts on the voucher. If there is a cent difference on the voucher, use for example the rounding differences account for the correction.

3. Reconciliation

Open Financial management > Bookkeeping > Bookkeeping reconciliation.

The reconciliation view examines transactions in the bookkeeping and accounts receivable/payable for the selected period.

  • For bookkeeping, the system's default accounts (sales receivables account and accounts payable account) are used in the comparison.
  • If accounts receivable/payable transactions have been recorded to accounts other than the default accounts, these will appear as differences between accounts receivable/payable and bookkeeping.
  • Bank statements are not reconciled in this view (see point 1).

If there is a difference in the reconciliation view, it is usually due to one of the following:

  • The date (or posting date, if given) and the date or amount of the SL voucher of the sales invoice differ.
  • The date or amount of the sales payment and its SR voucher differ.
  • The posting date of the purchase invoice and the date or amount of its PL voucher differ.
  • The date or amount of the purchase payment and its PP voucher differ.
  • The sales invoice has no voucher.
  • The sales payment has no voucher.
  • The purchase invoice has no voucher.
  • The purchase payment has no voucher.
  • There is a voucher in the bookkeeping that uses the default sales receivables account or accounts payable account, but there is no corresponding accounts receivable/payable event (sales invoice, purchase invoice, payment, payment).
  • The payment is dated before the invoice posting date (the difference will disappear when the invoice posting date is passed).

Finding reconciliation differences

Open the reconciliation view for the target month and check the opening balances for sales and purchases.

  • If both ledgers have opening balance differences, resolve these before reconciling the selected month.
  • Open the reconciliation view backwards month by month until you find the month where the difference originates, and find and correct the differences as described below.

When the opening balances for reconciliation have been corrected, make sure that the difference in the "Opening balance" column is 0.00 euros for both ledgers.

  • If the closing balance for sales differs from zero, the ledger and bookkeeping do not match.
  • If the opening balance is 0.00 euros, the reconciliation difference has arisen during the selected month.
  • From the "Change" column you can see that the entire difference has arisen during the selected month.

Limit the reconciliation view to a shorter period.

  • For example, search for one day at a time and find the difference with a smaller material.

If the difference is not visible in the period you selected, make a daily limitation.

  1. Enter the same day as both the start and end date.
  2. Press "Show report".
  3. Move forward one day at a time using the links "<< previous day" and "next day >>" until you find the distinguishing day.

Check the exceptional vouchers and payments in the reconciliation view.

  • If there are issues in the reconciliation that the system has detected, you will see the exceptional vouchers and payments in a separate section.
  • You will also see the number of differences.

Sales side view:

  • "Invoices without a voucher" shows invoices missing a voucher. These invoices have been left unsent. Sending or printing the invoice creates a voucher for it.
  • "Vouchers not linked to an invoice or payment" shows vouchers that have, for example, been posted manually to the default sales receivables account (e.g. 1701) but are not linked to an invoice or payment.
  • "Difference in sales receivables" shows vouchers where the bookkeeping sales receivables account entry differs from the invoice amount.
  • "Difference in posting dates" shows vouchers where the invoice posting date differs from the voucher date.
  • "Difference in payments" shows if the payment amount differs from the amount recorded in bookkeeping.
  • "Difference in payment dates" shows if the payment date differs from the payment voucher date.
  • "Payments without a voucher" shows payments missing a bookkeeping voucher.

Accounts payable view:

  • "Invoices without a voucher" shows approved purchase invoices that have not been posted.
  • "Vouchers not linked to an invoice or payment" shows vouchers that have, for example, been posted manually to the accounts payable account, but for which there is no invoice.
  • "Difference in accounts payable" shows if the accounts payable account entry differs from the invoice amount.
  • "Difference in payments" shows if the payment voucher amount differs from the paid amount.
  • "Difference in payment dates" shows if the payment date and payment voucher date differ.
  • "Payment date is before the invoice date" shows if a payment has been made before the invoice posting date.
  • "Payments without a voucher" shows payments that are missing a voucher.

Drilling down to ledger listings:

  • From the sales and purchase ledger links you can move directly to the sales and purchase ledger listing.
  • You can quickly see, for example, whether a sales or purchase invoice is missing a voucher.

Use the traditional model for reconciliation.

Sales invoices and payments
(For reconciliation, the date and amount of the accounts receivable transaction must match the date and amount of the bookkeeping transaction.)

  • List all sales invoices and their SL vouchers for the distinguishing day, compare the date and invoice total to the sales receivables account entry and correct the differences.
  • Check that each sales invoice for the distinguishing day has an SL voucher.
  • List all payments and their SR vouchers for the distinguishing day, compare the date and payment amount to the sales receivables account entry and correct the differences.
  • Check that each payment for the distinguishing day has an SR voucher.
  • Note payments outside the ledger, such as settlements from different financing companies, and handle these only in bookkeeping.
  • Note that no bookkeeping voucher is created for the allocating of a credit note, only two payments in the ledger.
  • Use the bookkeeping voucher listing to find all vouchers that have used the default sales receivables account and check that no bypass entries have been made.
  • Note that the reconciliation view compares the ledger only to the default sales receivables account in bookkeeping. If you use other receivables accounts, there may be a reconciliation difference equal to the balances of these other accounts.

Purchase invoices and payments
(For reconciliation, the date and amount of the accounts payable transaction must match the date and amount of the bookkeeping transaction.)

  • List all purchase invoices and their PL vouchers for the distinguishing day, compare the date and invoice total to the accounts payable account entry and correct the differences.
  • Check that each purchase invoice for the distinguishing day has a PL voucher.
  • List all payments and their PP vouchers for the distinguishing day, compare the date and payment amount to the accounts payable account entry and correct the differences.
  • Check that each payment for the distinguishing day has a PP voucher.
  • Use the bookkeeping voucher listing to find all vouchers that have used the default accounts payable account and check that no bypass entries have been made.
  • Note that no bookkeeping voucher is created for the allocating of a credit note, only two payments in the ledger.
  • Note that the reconciliation view compares the ledger only to the default accounts payable account in bookkeeping. If you use other liability accounts, there may be a reconciliation difference equal to the balances of these other accounts.

4. Tracking items, open transactions and transaction allocating

Use tracking items, open transactions and transaction allocating according to the separate instructions.

Read the instructions on this topic:

 

5. Bookkeeping reports

Open bookkeeping reports from the following menus:

  • Financial management > Reporting and monitoring > Bookkeeping reports

  • Financial management > Reporting and monitoring > Cost object reporting

  • Financial management > Reporting and monitoring > VAT reports

Open reports related to financial statements by selecting Financial management > Bookkeeping > Financial statements.


6. ??

Open Financial management > Company obligations > ??.

Retrieve the information for the report from the bookkeeping and accounts receivable/payable.

Customer card

  • Note the customer's billing country.
  • Note the Business id field: fill in the complete VAT number (VAT identifier) including the country code.
  • The country code is not brought to the ??, because the automation removes it from the notification. The country code is obtained for the notification based on the customer's billing country.

Product

  • Note the product's sales bookkeeping account.
  • You can find the sales bookkeeping account on the second tab of the product card at the bottom under "Default bookkeeping accounts" and in particular the account defined for the EU section.

Use the EU sales account control information in the chart of accounts.

  • For example, direct service sales to appear correctly on the ?? by selecting a suitable EU sales account (in the example, account 3361).
  • Account 3361 has the VAT identifier EUPM 312 linked to it in the chart of accounts.
  • The control information of the EU sales account defined in the product details in the specification of accounts determines whether the sale is recorded as a sale of goods or services.
  • Triangular trade is marked separately on the invoice itself.

Sales invoice

  • Set the tax treatment of the sales invoice to "According to the customer's billing country group".
  • If the trade is triangular trade, mark it on the invoice accordingly.

New invoice view:

Old invoice view:

Notification

  • Base the information in the notification on the bookkeeping and ledger data.
  • Use the information on the customer and product cards and the markings on the invoice.
  • Make sure that bookkeeping vouchers have been created from the sales invoices, because without a voucher no information will appear on the notification.

Fill in the ?? as follows:

  1. Press "Retrieve values from bookkeeping" to retrieve values based on the information saved in the bookkeeping.
  2. Check that sales are detailed correctly by customer and trade item code (Goods sales, Triangular trade and Service sales).
  3. If you wish, you can also fill in all the information manually.
  4. Save the form as in progress or mark it as complete.
  5. Add rows by pressing "Save form and show 10 new rows".

If you have filled in the information manually, do not use the "Retrieve values from bookkeeping" button again, as it will clear all manually entered information from the form.

Send the completed notification to the tax authority.

  1. Mark the notification as complete.
  2. Go to the main view.
  3. Select the notification.
  4. Press "Send selected notification".
  5. Log in to Katso.
  6. Send the notification to the tax authority.

 

7. Period closing: VAT entry, OmaVero notification and payment

If the company is not Vat liable

Close the months from the financial period management page.

Open Financial management > Financial period management.

Read the instructions on this topic:

Financial period management

Set the VAT lock as follows:

  1. Enter the desired lock date in the "VAT lock" field.
  2. Press "Set lock".

 

Frequently asked questions

Question: How do I make sure that all sales invoices for the month have been processed and that a bookkeeping voucher has been created for them?

Answer: Open Sales > Invoicing > Sales invoice list, use the extended search, limit the invoice date to the month to be closed and set the status to "Unsent". Print or send all invoices shown in the result set so that a bookkeeping voucher is created for them.

Question: How do I find and correct reconciliation differences between bookkeeping and the ledgers?

Answer: Open Financial management > Bookkeeping > Bookkeeping reconciliation, check the opening balances, limit the period if necessary to a single day and use the sales and purchase ledger detail links. List the distinguishing day's invoices, payments, purchase invoices and payments and their vouchers and correct date and amount differences and missing vouchers.

Question: How do I check whether bank statements have been reconciled to bookkeeping?

Answer: Open Financial management > Bookkeeping > Bank statements, select the year, month and accounts and search the bank statements. Compare the ending balance of the bank statement to the balance of the corresponding bank account in the bookkeeping account. If the Difference column shows zero, the bank statement reconciles. If there is a difference, find the errors using the Voucher listing report, limiting it to the bank account and bank statement period.

Question: How do I handle distinguishing vouchers in the month-end closing?

Answer: Open Financial management > Bookkeeping > Voucher listing, limit the search to the month to be closed and select "Show only distinguishing vouchers". Open the vouchers highlighted in red in edit mode, make the necessary corrections and save. Avoid changing amounts that are tied to ledger transactions or bank statements and, if necessary, use the rounding differences account to correct cent-level differences.

Question: How is the ?? data generated in Netvisor?

Answer: The data is retrieved from the bookkeeping and ledgers based on the customer and product cards and the tax treatment on the invoice. The customer card must have the billing country and complete VAT number, the product must have the correct EU sales account and the chart of accounts must have the VAT identifier. The tax treatment of the sales invoice must be "According to the customer's billing country group". A bookkeeping voucher is required for the data to appear on the notification.

Question: How do I send the ?? to the tax authority?

Answer: Open Financial management > Company obligations > ??, retrieve values from bookkeeping or fill in the data manually, save the form and mark it as complete. Go to the main view, select the notification, press "Send selected notification", log in to Katso and send the notification to the tax authority.

Question: How do I close the month if the company is not Vat liable?

Answer: Open Financial management > Financial period management, enter the desired lock date in the "VAT lock" field and press "Set lock". The months are closed from the financial period management page.

 Keywords: Month-end closing process, Sales invoices, Purchase invoices, Reconciliation , Bookkeeping reports, Period closing

 

This article has been translated using an AI-based translation tool. The contents or wording of these instructions may differ from those in other instructions or in the software.


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