Do we need to close AP at the same time as Inventory close AX 2012

When we close the month end - is there any order that we follow to close - Inventory, AP and AR.

Question: Can we separate the AP subledger close from the Inventory and A/R close and (close AP at a later date), or should we need to close A/P as well along with AR and Inventory close all at the same time and re-open it if needed to make the fix

we are putting the period on hold.

Hi Patrick,

There is no such specific order of month end close. It varies from company to company depending on their business.

Secondly,

Inventory closure has got nothing to do with AP or AR closure. After inventory is closed, you can’t post any inventory transaction on or before the closure date.

Normally, after month is end, there are certain set of operation/transactions which finance people do. This are usually AP/AR reconciliation, adjustment entry posting, bank reconciliation, depreciation posting, inventory closure. After this, the period is set to on hold. But if any adjustment is required to be posted, then that period can be opened again and transaction can be posted. For inventory, closing will be required to cancel.

Pranav…

Thanks Pranav,

very good explanation .

I know about the Inventory closure . what about the AP/ AR closure and how to do in AX ?

Could you explain please ?

Hi Lally,

There is no job like inventory closing for AP and AR closure. Inventory closing is required because of it’s complexity. We use weighted average price and that is settled at the time of closing as per costing method. In AP and AR, it’s not required.

Normally, at the month end, we do some transactions like adjustment, like sending collection letter or posting interest for the overdue amounts, writing off some transaction or making some AR transactions as bad debt.

The above mentioned are just examples.

Pranav…