Grain End of Month / Year

Before End of Year processes begin, it is recommended to select the GL Posting Reports - Create Reversing JE in New Year preference on the Posting tab at Grain / Setup / Preferences. If this preference is selected, skip Step 1.

1. Perform a normal End of Day which includes DPR posting. Review the Grain End of Day Checklist if necessary.   
2. Perform the following End of Day steps from the Grain End of Day Checklist if they are not included in the normal End of Day process.
   1. Step 15 – Post Purchases, Shipments, and Company Owned Adjustments to the General Ledger.
   2. Step 16 – Run the Futures/Options P&S Report.
   3. Step 17 – Run the Open Futures/Options Report.
3. Run the following Grain Reports. These reports are used to reconcile the units shown on the DPR. Run only the contract types that apply to the operation.
   1. At Grain / Grain Reports / Assembly Sheets / Assembly Sheet Summary, run the Assembly Sheet Summary report with the Calculated Actual Price and the Print Assembly Unit Recap options selected.
   2. Run the Settlement Destination Report for all applicable contract types. Set the Status to Open and the Posted Status to Posted. This report is found at Grain / Grain Reports / Settlements / Settlement Destination Report.
   3. At Grain / Grain Reports / Settlements, open the Settlement Advance Report to reconcile the Customer Advance Account in the general ledger. Set the Select Advance Status to Open, and the Posted Status to Posted, and run the report.
   4. Open Grain Purchase Contract Report at Grain / Grain Reports / Purchase Contracts / Purchase Contract Listing to verify the Purchase Contracts listed on the Trading Position Report. It is suggested to sort By Commodity by Contract Type, and set the Contract Status to Open and New Crop.
   5. At Grain / Grain Reports / Sales Contracts, run the Sales Contract Listing report to verify the Sales Contracts listed on the Trading Position Report. Set the Contract Status to Open and New Crop.
   6. At Grain / Grain Reports / Shipments / Shipment Listing, set Completely Settled to No and Direct Ship to All. Run the report to review unsettled shipments and determine if they are still outstanding.
4. On the General tab at Grain / Setup / Preferences, update the Default Due Date. This due date applies to Invoices made from Settlement deductions.
5. At Grain / GL Posting Reports / Grain G/L Posting Reports / Grain Storage Report, print the Grain Storage Report using the last day of the accounting period as the Settlements Through Date and the Post to GL option selected. After reviewing the report, post the storage units to the general ledger.
6. At Grain / GL Posting Reports / Grain G/L Posting Reports / Commodity Transfer Posting Report, print the report using the last day of the accounting period as the Comm. Transfers Through Date. The following posting options are available.
   1. Post to GL as a Purchase uses the purchase account for all the commodity/locations to create the journal entry to post to the general ledger.
   2. Post to GL as a Sale uses the sales account for all the commodity/locations to create the journal entry to post to the general ledger.
7. At Grain / GL Posting Reports / Grain G/L Posting Reports / Grain Bank Shipment In-Transit, print the report. This report shows non-reconciled Grain Bank Shipments. Using the Post to GL as Credit to GB Issued option reduces the Grain Bank Issued account for the commodity/location.   
8. Post the Grain In-Transit Shipment Report at Grain / GL Posting Reports / Grain G/L Posting Reports. This report values all Shipments that have not yet been settled. Choose from two posting options.
   1. Post to GL as Sales treats the in-transit units as a sale and creates an adjusting entry in the general ledger to increase the Sales for the accounting period.
   2. Post as Inventory to Ledger Setup treats the in-transit units as inventory by posting them to the Grain Ledger Accounts to increase the inventory balance for the accounting period. Later, general ledger adjusting entries that include these units are created when the Grain Inventory Report is posted to the general ledger.
9. If this is the calendar year end (December) and interest is paid on Installment Sale/Deferred Payment Settlements, run the Update 1099 Interest Paid Values utility at Grain / Utilities.
10. At Grain / GL Posting Reports / Grain GL Posting Reports / Open Assembly Values, select OK to update the open and priced assemblies on the Grain Ledger Accounts. Edit the UnPriced Unit Price for each commodity/location in Open Assemblies. These values can also be manually updated in the lower right corner of the Grain Units tab of the Add or Edit a Grain Ledger Account screen, found at Grain / Setup / Grain Ledger Accounts. Enter the number of Current Units and Price into the Unpriced Assembly and Priced Assembly areas. The Assembly Sheet Summary report (as printed in Step 3a above) can help calculate these numbers.
    • If Update Current $/Unit Values on Grain Ledger Accounts is selected and the Update Grain Ledger Assembly Info is saved, go to Step 12.  
11. At Setup / Grain Ledger Accounts, edit each commodity. On the Grain Units tab, update the Current $/Unit column for each Commodity to value Grain inventory to liabilities for month end financials.
12. At Grain / GL Posting Reports / Mark to Market Reports, print the Open Futures/Options Report to assist in making a journal entry for valuing Open Futures/Options Contracts. Optionally select Post as Purchase or Post as Sale under G/L Posting Options. A typical journal entry is as follows.  
    • Debit – Unrealized Gain\Loss on Futures Contracts
    • Credit – Applicable Commodity Purchase account
    • Set the JE to reverse next month
13. At Grain / GL Posting Reports / Market to Market Reports, print the Current Market Valuation report to assist in making a journal entry for valuing Purchase and Sale Contracts. Optionally select Post as Purchase or Post as Sale under G/L Posting Options. A typical JE is as follows. 
    • Debit – Unrealized Gain\Loss on Contracts
    • Credit – Applicable Commodity Purchase account
    • Set the JE to reverse next month.

Steps 14 - 17 may optionally be posted to the G/L to fully account for accrued balances on the financials.

14. Storage and service charges can be invoiced or accrued. 
    1. Invoice – At Grain / Utilities / Invoice Storage and Service Charges, check the option to Generate Report Rather Than Invoices. Review the report for accuracy, and then create an Invoice by unchecking the Generate Report Rather than Invoices option.  
    2. Accrue – If storage charges are not invoiced at the end of the month but need to display on the Balance Sheet as a receivable on the general ledger, run the Storage and Service Charges reports at Grain / Grain Reports / Storage and Service Charges to assist with making the journal entry for the accrued storage and service charges. A typical JE is as follows:
       • Debit – Grain Deductions receivable account
       • Credit – Storage/Service Charge income
       • Set the JE to reverse next month
15. Accrued drying charges can be invoiced or accrued. 
    1. Invoice – Before invoicing, run Grain / Grain Reports / Assembly Sheet / Accrued Drying Charges including Settlements sorted by customer as a reference for the number of units associated with the charges invoiced. After the report is run, invoice the drying charges at Grain / Utilities / Invoice Assembly Drying Charges.    
    2. Accrue – If drying charges are not invoiced at the end of the month but must display on the Balance Sheet as a receivable on the general ledger, the Accrued Drying Charges report, found at Grain / Grain Reports / Assembly Sheets assist with making the journal entry for the accrued drying charges. A typical JE is as follows. 
       • Debit – Drying accrual
       • Credit – Drying Income/Cost account
       • Set the JE to reverse next month
16. The Freight Reconciliation report should be used to assist with the journal entry for outstanding freight. Set Reconciled to No. This report is at Grain / Grain Reports / Freight Purchases / Freight Reconciliation. A typical JE is as follows. 
    • Debit – Freight Expense account
    • Credit – Freight Payable
    • Set the JE to reverse next month
17. Use the Settlement Destination Report for Installment Sale/Deferred Payments Settlements (as in Step 3b above) to create journal entries for any interest accrual showing on the report. A typical JE is as follows.
    1. Debit – Grain Interest Receivable
    2. Credit – Interest Income
    3. Set the JE to reverse next month
18. Close the Grain End of Month at Grain / End of Period / End of Month. This clears Units Received, Units Shipped, Local Sales, and Adjustments totals displayed in the Month column of the Add or Edit a Commodity screen and tests for G/L transactions that have not yet been posted. 

Note: If it will be several days before Steps 19 - 23 can be completed, proceed with Step 24. Although the month end in Accounting must be completed to finalize the financial statements, grain transactions for the new month may be entered, but do not post these transactions to the G/L until the Accounting month is closed. If Steps 19 - 23 are completed after the Accounting month is closed, post them into the prior Accounting period.

19. If this is the end of the 12^th month, perform the Grain End of Year at Grain / End of Period / End of Year. This clears Units Received, Units Shipped, Local Sales, and Adjustments totals displayed in the Year column on the Add or Edit a Commodity screen and tests for GL transactions that have not yet been posted.
20. Print the Grain Inventory Report at Grain / GL Posting Reports / Grain G/L Posting Reports.  Verify the current inventory units match the DPR for the cut-off date. If it does not match, then resolve before proceeding.  
21. If posting merchandise inventory through Grain, print the Merchandise Inventory Report at Grain / GL Posting Reports / Grain G/L Posting Reports. 
    1. At Grain / Setup / Grain Ledger Accounts, edit Grain Ledger Accounts where the Type is a Merchandise account to update current inventory information and the Use Cost of Sales Override option is not selected.  
    2. If it is Fiscal Month 12 and the Use Cost of Sales Override option is selected on the merchandise account on the Merchandise tab at Grain / Setup / Grain Ledger Accounts.
       • Uncheck the Use Cost of Sales Override option.
       • Enter actual physical count Units and Value in the Current Period areas.
    3. Run the Merchandise Inventory Report, and review it for accuracy. This is found at Grain / GL Posting Reports / Grain G/L Posting Reports / Merchandise Inventory Report.
22. Print the Profit and Loss (Preliminary) report to display the effects of posting the Grain inventory reports to the financial before actually posting. This offers an opportunity to correct or adjust any inventory valuations. This report is found at Grain / GL Posting Reports / Profit and Loss Statement / Profit and Loss (Preliminary).
23. At Grain / GL Posting Reports / Grain G/L Posting Reports / Grain Inventory Report, post the Grain Inventory to the General Ledger. This creates adjusting entries to calculate the Cost of Sales, current inventory, and liabilities into the selected Accounting period. In addition, reversing journal entries are posted as Future Journal Entries. As the Accounting month is ended below, these reversing journal entries are posted into the new month. If it is the 12^th month and posting is being completed from a prior year, a message displays asking if the current year should also be affected. Select Yes. If posting the Grain Inventory Report from the archived dataset, an additional message box asks to update the Grain Ledger Account’s Beginning of Year Grain balances with the Current values. If Yes is selected, an editable grid populates, consisting of current quantities and values for each Grain Ledger Account. Once the grid is completed and saved, the Beginning of Year balances on the Grain Ledger Accounts in the current year are updated.  
24. At Grain / GL Posting Reports / Grain G/L Posting Reports / Merchandise Inventory Report, select the Print General Ledger Adjusting Entries option, and post the Merchandise Inventory to the general ledger.
25. Make an image of the data before entering any transactions for the next fiscal month. Optionally, at Hub / Utilities / Create/Refresh Play Data, set up an end of month dataset to refresh every month end.
26. Continue with the Accounting End of Month process through the Agvance Accounting module.
27. After the Accounting month is closed, run the Profit and Loss (Final) report at Grain / GL Posting Reports / Profit and Loss Statement / Profit and Loss (Final), and select the Update Grain Ledger History option. Review the Period to Update and Year to Update to verify period accuracy.   

Beginning of Year Procedures

If this is the end of the Fiscal Year, after closing the Accounting Month/Year, perform the Beginning of Year procedures described below.

Note: An auditor may have different beginning of year instructions. Be sure to check with them before proceeding.

1. If the GL Posting Reports - Create Reversing JE in New Year preference was selected on the Grain / Setup / Preferences / Posting tab prior to any of the Grain End of Year procedures being completed in the prior year’s database, proceed to Step 2.
   Note: This preference causes reversing journal entries to be made for open and priced Assemblies, In-Transits, and Grain Bank In-Transits in the new year. If the preference was not set, use the Grain Inventory Report from the End of Year to make a journal entry to reverse the Current Assembly and In-Transit Pricing.
   • Priced Assemblies – Found on the Current Assembly and In-Transit Pricing section of the Grain Inventory Report.
     • Debit the Unsettled Grain Payable account for units and dollars.
     • Credit each Grain purchase account for units and dollars.
   • Open Assemblies – Found on the Current Assembly and In-Transit Pricing section of the Grain Inventory Report.
     • Debit the Unpriced Assembly Liability account listed on the Grain Ledger G/L Posting Accounts window at Grain / Setup. (If there is no account listed, use the Storage Liability account listed on the commodity in the Setup / Grain Ledger Accounts area.)
     • Credit each Grain purchase account for units and dollars.
   • In-Transit Posted as Inventory – Found on the Current Assembly and In-Transit Pricing section of the Grain Inventory Report.
     • Debit the Grain Inventory account for units and dollars.
     • Credit each In-Transit account for units and dollars.
   • In-Transit Posted as Sales – Found in the prior year database on the In-Transit Shipment Report at Grain / GL Posting Reports / Grain G/L Posting Reports.
     • Debit the Grain Sales account for each commodity/location for units and dollars.
     • Credit each In-Transit account for units and dollars.
   • Grain Bank In-Transit – Found in the prior year database on the Grain Bank Shipment In-Transit report at Grain / GL Posting Reports / Grain G/L Posting Reports.
     • If there is a positive quantity on the report, enter a negative quantity only journal entry to the Grain Bank Issued account for each commodity/location.
     • If there is a negative quantity on the report, enter a positive quantity only journal entry to the Grain Bank Issued account for each commodity/location.
2. If beginning of year balances were updated by checking the box to do so in the archived dataset, proceed to Step 3.
   
   In the prior year data, preview the Grain Inventory Report at Grain / GL Posting Reports / Grain G/L Posting Reports that was used for ending the year to verify the Current Inv and the DPR Actual amounts match. Close the Grain Inventory Report. A window displays asking if the beginning of year numbers should be updated. To update the beginning of year numbers in the current dataset, select Yes. Pricing and inventory numbers from the prior year then display. If this information is correct, select Save to update the beginning year numbers in the current year.
   
   Note: If In-Transits are posted as inventory, adjust the Beginning of Year Grain Ledger Account units to equal the Fiscal Month 12 current inventory units plus the Grain In-Transit units. The beginning year price then needs to be calculated by adding the Fiscal Month 12 current amount plus the In-Transit value divided by the total of the Fiscal Month 12 current inventory units plus the Grain In-Transit units.
3. Reset the Current Year on the General tab at Grain / Setup / Preferences.
4. If posting Merchandise Inventory in Grain,
   • Update the Beg of Year inventory on the Merchandise tab of the Grain Ledger Accounts window at Grain / Setup.
   • If using Cost of Sales Override, zero out current inventory, and select Use Cost of Sales Override. Adjust the rate for the new year as needed. This is done on the Merchandise tab at Grain / Setup / Grain Ledger Accounts.