If done poorly, month-end processing is the most time-consuming process. The industry norm for month-end is D+5, which means the last day of the current month plus 5 days in the following month.
However, these are a typical number of days to follow. And this is rarely the case for enterprise-size companies focusing on growth. Besides, the emphasis is mainly on reducing the number of days it takes to close the month-end.
You may improve the month-end closing with Microsoft Dynamics 365 Finance and Operations ERP by following the steps below.
Steps to optimise the Month-end closing:
1. Use the “out of the box” Finance period close workspace for a checklist of month-end activities
Let’s face it: developing a work checklist for a process or project is the first step toward progress. It assures you that you’ll be able to complete the process from beginning to end.
You may delegate various tasks to different positions in Dynamics 365 Finance’s Financial Period close tasks. The program will assign these tasks to specific people to complete. Individual roles should keep track of these tasks in the Financial Cycle Close workspace, which will show them what tasks they need to complete and when they need to complete them. They can also use the task to hop right into the task area or the navigation route for them to follow. If you have or plan to build a custom process, these custom processes or links can be a part of the Finance time close configuration.
2. Workspaces and tiles that can show documents that are not processed yet
The most important aspect of the month close is the number of documents still to be processed. You also need to find it out, and the only way is to run a series of reports to see the results in a queue for further process. In D365 Finance, you can view the count of documents that need to be processed, a comprehensive list of dashboards, working areas.
3. Use vendor payment automation where possible
Process automation is an important automation function within the Microsoft Dynamics Finance ERP suite. The process automation platform automates tasks that would otherwise be done manually. You may, for example, schedule a payment run based on various parameters such as Methods of Payment, Vendor classes, and the frequency with which Vendor disbursement journals are produced. Similarly, the previously time-consuming and manual task of matching receipts to invoices is automatic while using the Process automation system. Also, the posting of matched Purchase order invoices is automated using the Process automation framework. This reduces the number of administrative tasks that users must perform daily and prepares them for a smooth month-end close.
4. Use the engine for Tax filing purposes
Tax filings are one of the most time-consuming aspects of the month-end process. Previously, both processes would have had to be handled manually, either by massaging a report created by the ERP system or by organizations having to log in and manually enter the information. Regulatory outputs are given out of the box with Microsoft Dynamics 365 Finance and Operations Electronic reporting platform. It can also be used to directly contact the tax filing system and file taxes with the local authorities.
5. Use an automated bank reconciliation
Dynamics 365 Finance ERP has a powerful feature that allows you to import various types of bank statements for use in bank reconciliation. As we all know, bank reconciliation is one of the most time-consuming tasks that can become difficult if it is not getting proper care while processing. Both of these issues are easier to solve by using the advanced bank reconciliation process. It includes configurable rules for importing and matching bank statements to ledger transactions.
6. Automate your AP automation with DHRP
DHRP is here to guide you as you journey through the process. If you are looking to explore more features of Payable automation, DHRP has experts for it. From implementation to the guidelines and various automation solutions according to your business are possible with DHRP.
Give us a quick call and we’ll be there for you throughout your digital transformation with Dynamics 365 Finance Australia.
