Quarterly Accounting Self-Audit

Every quarter, it is important to review certain aspects of the Accounting module to ensure that all transactions tie out, access to the system is granted to the appropriate Users, and financial data is accurate.

Run the AP Aging Report

Run the AP Aging report to ensure that all AP Transactions are cleared and tied out. If any discrepancies exist when reviewing this report, check for the following issues:

• Journal Entries are entered directly to the General Ledger but not to Accounts Payable. These will appear on the AP Aging as an 'Unassigned Vendor'.

• Credit Memos or Invoices are coded directly to Accounts Payable.

• Invoices have a negative Credit Expected.

• Balances were off before cutting over to R365. This will appear as a system setup error in the To Do Checklist.

• AP Invoices are missing.

R365 Best Practice:

Save a list view for AP prior to quarter end with a remaining balance greater than zero, as shown below.

Run the AR Aging Report

Run the AR Aging report to see any open AR Transactions that have not been paid. If any discrepancies exist when reviewing this report, check for the following issues:

• Journal Entries are entered directly to the General Ledger but not to Accounts Receivable. These will appear on the AR Aging report as 'Unassigned Vendor'.

• Balances were off before cutting over to R365. This will appear as a system setup error in the To Do Checklist.

• AR Invoices are missing.
  

Review and Update User Permissions

At the end of the quarter, it is beneficial to go through the Users list to make sure people have the correct access to the system and Reports, including if access is revoked. Complete these tasks to update User Permissions:

1. Review the Users list to make sure only current Employees have access to the system. Click here to learn how to Deactivate or Delete a User.

2. Check to make sure that only select few Users, if any, have the following User Roles:

   • Full Access

   • Master Record Save

   • All Locations Access (User record)

     Click here to learn how to update user roles in bulk.

3. Ensure that Report Roles are set up with the desired level of access and are assigned to the appropriate Users.

Check out this webinar for a deeper dive into User Setup Best Practices.

Additional Financial Review

Assess these additional areas for a deeper look into financial health:

• Bank Deposit Window - Ensure that the Bank Deposit window matches the Balance Sheet. If there are uncleared transactions in R365, check to see if that total amount matches the total amount of uncleared transactions on the bank statement. Click here to learn how to Manage Undeposited Funds.

• Third Party Delivery - Reconcile these accounts against outstanding payments to Third Party.

• Intercompany Transactions - Ensure that the Balance Sheet for Due To/Due From transactions are even across all companies.

R365 Coaching Session: Auditing Data to Ensure Accuracy

Video summary

This webinar recording walks through how to self-audit your R365 data each quarter. It covers reviewing daily, weekly, and monthly accounting reports — including AP and AR aging — for errors, working through the accounting checklist, and cleaning up inactive or duplicate ingredient items. It also covers auditing units of measure and item setup consistency in Smart Operations, reviewing general ledger naming conventions and categories so P&L reports roll up correctly across locations, and reconciling and mapping vendor items to keep accounts payable automated. If you get stuck on any of these steps, reach out to your customer success manager or submit a support ticket.