Closing Adjustments Report

At month end, the gross profit defined by cieTrade.net is transferred to your accounting system using a summary journal entry that’s provided by our Closing Adjustments report. This entry distributes the sales and expenses that have accrued over the financial period to the appropriate sales and expense distribution accounts in your accounting system while also offsetting balance sheet accrual accounts that are used when sales invoices and vendor bills are initially created by cieTrade.net.

Run the Closing Adjustments Report by navigating to the Accounting tab in the left window pane and selecting the Closing Adjustments option. This report provides the basis for making the journal entry discussed above.

Set the From and To fields to the financial period being closed.
Use the report create a journal entry to distribute sales and expenses to the appropriate sales and expense distribution accounts in your accounting system.

Please Note: This report can be broken into Multicurrencies transactions. To enable this function, go to Settings> Preferences> Closing Adjustment Report Format> Multicurrency Grouping.

Closing Alerts

At the bottom of the Closing Adjustments report, one or more alert messages (shown below) may appear depending on the transaction activity in your closed financial. The following is an explanation of each possible alert and what action should be taken if any.

Expenses Against Future Sales
This alert tells the user that within the period being closed, vendor bills have been received and posted using cieTrade.net’s AP Ledger for trades (Worksheets) where the posting dates are in a future financial period. Since revenue and costs on Worksheet are only recognized (reported) by posting date, they will not appear on the Closing Adjustment Report and subsequently not increase (CR) the balance of the AP Accrual Account in your general ledger when your closing journal entry (discussed in Closing Procedures) is made.
When reconciling Open Payables, the amount of the alert should be added to the understated A/P accrual general ledger account balance when compared to the Open Payables report total when run “as of” the last day in the closing period.
Expenses Against Unposted Future Sales
This alert is similar to the one above except that instead of posted expenses being excluded from the Closing Report because of future posting dates, these are excluded because their associated Worksheets have not been set to INVOICE status. This also results in the balance of the AP Accrual account being understated in comparison to cieTrade.net’s Open Payables report when run as of the end of the financial period. When reconciling A/P, the value of this alert should be added to the A/P accrual general ledger account balance.
Unposted Adjustments Note
This alert is just a warning that there are approved purchase adjustments in cieTrade that were never vouchered against an invoice or posted through to accounting. This alert does not impact accounting or reconciliations in any way. The Unposted Adjustments folder in cieTrade.net's "Inbox" provides a detailed list of all unposted adjustments both approved and unapproved.

If you have additional questions, please contact the Support Team via email to support@cietrade.net.