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. 

This article reviews the following Accounting Self-Audit tasks:

• Run the AP Aging Report
• Run the AR Aging Report
• Review and Update User Permission
• Additional Financial Review

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: 

1.  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'
2.  Credit Memos or Invoices are coded directly to Accounts Payable
3.  Invoices have a negative Credit Expected
4.  Balances were off before cutting over to R365. This will appear as a system setup error in the To Do Checklist
5.  AP Invoices are missing

Pro Tip: 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:

1.  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'
2.  Balances were off before cutting over to R365. This will appear as a system setup error in the To Do Checklist
3.  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 mark Users as 'Inactive'
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)
     • Note: Click here to learn how to update User Roles in mass.
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. Review this training article to learn how
• Intercompany Transactions - Ensure that the Balance Sheet for Due To/Due From transactions are even across all companies