Understanding the End of Month Process

UNDERSTANDING THE END OF MONTH PROCESS

This section will detail the End of Month process in Sysnet and to explain what this process actually does. There are several tasks to consider when it comes to end of month and these can vary between venues according to the needs of the business and operating requirements. Having an understanding of how Sysnet handles end of month will assist the user in managing these areas in a timely manner.


WHAT HAPPENS WHEN END OF MONTH IS RUN?

In Sysnet, the “End of Month” process is performed from the Processing Application. Literally when this button is initiated, Sysnet will perform the following functions:

• Locks the Transaction Server so that sales from the current shift period will not be included
  
  
• Totals all of the “End of Shift” reports since the last End of Month and closes the period
  
  
• Effectively draws a line in the sand as far as a “trading period” is concerned for the purposes of reporting
  
  
• Closes the current day and opens a new day to allow for monthly reporting on day based data
  
  
• Calculates a CLOSING VALUE of stock on hand to compare with the opening value at the beginning of the period
  • The OPENING VALUE is the closing value from the previous End of Month Period
  • The CLOSING VALUE is the total value of stock on hand AFTER sales, stocktakes, spot checks and wastage processed during the period
    
    
• Calculates the total value of sales for the trading period
  
  
• Calculates the total cost of sales for the trading period
  
  
• Calculates the actual Gross Profit Percentages achieved for the trading period as a direct result of sales, discrepancies and wastage processed throughout the course of the period
  
  
• Totals and clears the month to date figures ready for the next period

WHEN SHOULD END OF MONTH BE RUN?

End of Month should always be run on the first day of the month or the first day of the financial period depending on how your venue manages monthly periods.

This is simply to ensure that the reporting on a complete month is consistent and accurate from period to period.

When the End of Month is not processed on the correct day the subsequent reporting data will include the additional days trading in that month until it is run, therefore not providing a true reflection of a month’s trading activity.

 
Preparing for End of Month

H&L recommend that the following procedures are followed when preparing for End of Month.

Stock Management:

All stock functions should be finalised by the end of the month to ensure that the period is closed with the most accurate figures. The following areas should be covered off:

1. Ensure all stock invoices (Beverage and Food) are entered and processed so the stock on hand is up to date
   
   
2. Ensure all Stock Transfers are processed so each applicable Sysnet location is updated with current stock levels and current costs
   
   
3. Ensure any outstanding wastage is processed to ensure the stock is adjusted accordingly to account for these losses
   
   
4. Completing all of these steps in a timely fashion will ensure the stock levels are as current as possible for more effective stocktaking
   
   
5. Complete the stocktake process for all locations
   
   

Tips:

• Keep on top of the stock invoices and ensure they are entered daily or at a minimum weekly. Don’t leave them all until the end of month. Doing this runs the risk of missing stock, incorrect stock levels and selling at out dated costs, impacting on your GP %.
  
  
• Save time by completing the bulk of your stocktakes a few days before the end of month. Then quick recounts can be done on any high volume products or problem stock on the day if need be.
  
  
• Remember that Sysnet runs a perpetual stock system, meaning stocktakes can be conducted at any time throughout the course of the month. This allows the venue to keep on top of stock takes and identify mistakes more easily.
  
  Note:  Any stocktakes left unprocessed will NOT prevent you from running your end of month process and closing the period.  It simply means that once they are processed any discrepancies will fall into the next period.  
  

Reporting

The Cost of Goods Report is an excellent tool to review carefully before the End of Month is run. It can assist in identifying problem areas that can be addressed before the period is closed. The Cost of Goods report provides an overall picture of the total stock movement/activity for the period.

The Cost of Goods Report can be printed from the Stock Menu under Reports > Stock > Cost of Goods

Note: Need more help with Stock Reports? Speak to your H&L Trainer about our Management Reports and Advanced Stock Control Training Sessions!
 

Recommended Admin Procedures

1. Complete all Daily Procedures.
   
   
2. Transfer all Internal Account Balances to the “Write Off” Account (if applicable)
   
   
3. Print a Debtor List for Head Office or Accountant as required
   Sysnet Toolbar > Debtors > Reports > Debtor List
   
   
4. Print all Debtor Statements and mail to clients
   Sysnet Toolbar > Debtors > Reports > Debtor Statements
   
   
5. Perform a Monthly Backup of Sysnet
   Sysnet Toolbar > Processing > Backup Sysnet
   Select Backup Method as “Daily” and back up to an external drive (USB Key, SD Flash Card etc.)
   
   
6. If your Debtor Periods are the same as your financial periods, age the Debtor Balances (this can be scheduled to happen automatically as part of end of month)
   Sysnet Toolbar > Processing > Age Debtors
   
   
7. Run the End of Month procedure
   Sysnet Toolbar > Processing > End of Month
   
   
8. Print a Profit Report (optional)
   Sysnet Toolbar > Stock > Reports > Sales Stock (PLU) > Profit Report > Historical
   
   Note: If necessary print 2 separate reports; one for Liquor PLU Groups and one for Food PLU Groups.  Using Report Templates can be a handy tool to set up for this type of report
   
   
9. Print a new copy of the Cost of Goods report to show the final figures (optional as this can be generated at any time)
   Stock Menu >Reports > Stock > Cost of Goods

Points to Note:

• Stock Invoices cannot be “back dated” to fall into a closed period, so remember to check all invoices are entered on time
  
  
• Once a period is closed in Sysnet it cannot be re-opened to fix any mistakes, any adjustments made will fall into the “current” period.
  
  
• If you are having difficulty completing stock tasks (stocktakes/invoices) or debtor tasks (printing statements/ageing) before the end month, it is generally more important to roll the month (preferably before 5pm on the first day of the month) than to wait for these tasks to be completed. This will allow for correct reporting of sales, revenue, stock movements and cash balances etc. for the month. This information will be invaluable later for generating stock orders and comparing month on month figures etc.
  
  Note:  While not recommended, it is possible to use the Processed Stocktake Report for a final closing figure for accounting if need be.

Due to the nature of Debtors being run LIVE in Sysnet, it is recommended that Debtor statements are printed and debtors are aged before the venue begins trading. Otherwise any current transactions which happen during this procedure will be included in the statement and ageing