Month-End Checklist

Use this checklist to prepare for and complete the month-end process. Click the links for individual checklist items to see detailed steps.

	Several days before Month-End, clean up your receivables. Generate the Balancing Current Receivables report through the month being closed. Use the last day of the month being closed as the Age Date. See Balancing Receivables in the Accounting Manual for instructions on using this report. Using the Balancing Current Receivables report as a reference, remove balances by applying debits to credits. From the account's Transactions list, click Actions on the options bar or menubar and select Apply Debits to Credits. You can also use the Unapplied Cash/Credit Report to identify unapplied payments, as well as any direct bill commission, premium payable, or broker commission payable payments deposited as Cash On Account. If any of your agencies installed in Applied Epic pay their producers/brokers on partially or fully paid items, run the Unapplied Cash/Credit report to check for money that has been left on account. Use the Apply Debits to Credits option (from the Transactions list) for those items you want to appear on the Producer/Broker Commission report. If you are also doing preliminary balancing to the general ledger, generate journal entries before running reports with general ledger balances affected by system generated journal entries.
	Applied Epic On-Premises organizations only: Back up all data. Applied recommends keeping this backup at least until the next Month-End.
	Make sure that all client transactions, miscellaneous journal entries, and bank account entries (such as depreciation, bank charges, etc.) for the month to be closed have been recorded. No transactions should be entered once you start the Month-End procedure.
	If you are sending client statements as part of your Month-End, you can generate them now. From the Home screen, click the Procedures button. Click Accounting on the navigation panel and select Generate Statements. Complete the criteria selections. Click Actions on the options bar or menubar and choose Generate Statements. After making the appropriate selections, click Finish.
	Change the default month so that any transactions entered will default to the new accounting month.
	Lock the accounting month you are preparing to close to prevent any additional entries from being made in the month. From the Home screen, click the Procedures button. Click Accounting on the navigation panel and select Month End. Click Actions on the options bar or menubar and choose Lock/Unlock Month. At this point in the Month-End process, your entries should have already been filed. Therefore, Applied Systems recommends keeping the month locked so that no additional entries can be filed in the month you are closing.
	Generate the journal entries for verification. These entries are generated based on the daily activity entered into the system (transactions, receipts, disbursements, etc.).
	Run your Month-End reports. From the Home screen, click Reports/Marketing. Note: If a recurring entry (journal entry, disbursement, or voucher) is configured to recur as part of the month-end procedure, the entry is posted when the accounting month is closed. If reports are run before you close the accounting month, they will not include the recurring month-end entries. Only after the accounting month is closed will the entries be reflected in the reports. You can create report versions for your Month-End reports and save them in the My Reports list. The following reports are recommended for Month-End; however, you can include, delete, or print any reports you choose: Account Current (Transaction reports) Balance Sheet (General Ledger reports) Balancing Current Receivables (Transaction reports) Balancing Current Premium Payables (Transaction reports) Broker Commission (Transaction reports) Earned Commissions (Transaction reports) Income Statement (General Ledger reports) Premium Payables (Transaction reports) Producer Commission (Transaction reports) Production (Transaction reports) Status of Accounts (General Ledger reports) Trial Balance (General Ledger reports) Unapplied Cash/Credit Report (Transaction reports) You can also run monthly management reports. Activity reports Book-of-Business reports (Policy reports) Claim reports Expiration reports (Policy reports)
	Review the reports for accuracy. If you find errors, make correcting entries by entering adjusting transactions in the month you are currently closing. Remember: If you locked the month, you must unlock it to enter the adjustments. If you made any adjustments, generate journal entries again and rerun any applicable reports.
	If this is any of your agencies' first month on Applied Epic, verify that the total client beginning balances from the Production report equal the accounts receivable opening balance from the Status of Accounts report. Run the Production report for the miscellaneous user-defined transaction code created to input your customer beginning balances.
	Before closing the month, verify that your receivables and your premium payables are in balance. To see if your receivables balance, generate the Balancing Current Receivables report, which includes the total based on the transactions entered as well as the General Ledger account balance. If the Grand Total for transactions equals the General Ledger Accounts Receivable balance, you are in balance. To see if your premium payables balance, generate the Balancing Premium Payables report by agency for the accounting month being closed. Compare the Grand Total with the General Ledger Premium Payables balance. If the two match, you are in balance.
	Close the accounting month.