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PRESENTER:

PRIVATE & CONFIDENTIAL Copyright © 2016 Constellation Home Builder Systems. All rights reserved.

MONTH END PROCESSES

Elaine Massey

AGENDA

Accounts Receivable1

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Accounts Payable

Banking and Home Production

General Ledger

Year End Items

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Month End Milestones

AR Cutoff / Close AP Cutoff / Close Closing Jourals

Reconcile Banks Cost Allocations

Book COS EntriesStart COGS Process

GL Cutoff / Close

Financial Statements

Level1

Level2

Level3

Level4

Level5

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1 Accounts Receivable

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Activate AR Periods

AR > AdministrationAfter all AR processing is completed by sure to close the periods

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AR Aging by Customer

AR > ReportingBalance the control accounts

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AR Reporting – Customer Statements

AR > ReportingGenerate Custom Statements

2 Accounts Payable

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Activate AP Periods

AP > AdministrationAfter all AP Processing has been completed, close the periods.

Multiple companies can be done at once. Enter * in company field

• Sort by year end

• Multi-select

• Use the Edit icon

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AP Activate Periods

AP > AdministrationSet each month accordingly.

Yes = Open

No = Closed

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On Hold Invoices / Over Budget Report

AP > ReportingReview the over budget report to adjust and clear any items that have been placed on hold.

Note: Use of this features requires over budget rules to be established in system administration

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Supplier Licenses

AP > ReportingReview the supplier license report for any licenses that are expiring in the coming month

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Aging by Supplier

AP > Reporting > Aging by Supplier

Balance AP Control Accounts

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Did you know?

You can report on Control to Sub ledger for all companies at one time.• Administration > Checks and Balances > Accounts Payable > Cks A/P to Ctl Account• Administration > Checks and Balances > Accounts Receivable > Cks A/P to Ctl Account

3 Banking

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Reconcile Bank Accounts

Banking > ProcessingBalance and finalize each bank account

Note: This process can begin after AP and AR periods are closed.

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Bank Balance Report

Banking > ReportingGenerate one report that lists all GL bank balances

3 Home Production

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Closing Journals

Home Production > Processing

Close all sales for the period using your closing journal template• Linked to sales details

• Include SOA items

• Include HUD items

Consider including:

• Allocated costs

• Commissions

• Loan payouts

• Land costs

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Cost Allocations Processing

Home Production > Processing

For all closed lots, move in the proportionate share of costs from:

• Soft Costs

• General Hard Costs

• Shell Building

• Land Development

*Based on rules established in Production Masters > Processing Rules > Project/Cost Allocations

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Calculate Projections

Home Production > Processing*Can being after AP Cutoff

Generate Projects for all lots that closed in the current month.

• Use Lot Selections to group lots

• Calculation method = Major Code

• Overwrite Estimate = Yes

• Estimate Method based on budget practices.

You may also consider running this report for all lots under construction.

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Detail ECC Report (Estimated Cost to Complete)

Home Production Reports > Analysis Reports

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Edit Projections

Home Production > ProcessingAfter reviewing the ECC report make the appropriate changes to:

• Lot Estimate

• Purchase Orders

• Actuals to date

If you do not have access to the above areas, edits to projections can be made here. These changes will eventually need to be made in the appropriate area, this location is intended to be temporary.

Note: Once COS Processing has taken place this is locked.

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Cost of Sales Processing

Home Production > ProcessingRun the Cost of Sales Processing for the current month

The calculation and estimate methods will default to the settings as defined in the COS Processing Rules in Production Masters.

* Join the COS Processing session for me details on this process.

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Posting Exceptions / Global Exceptions

The stop posting date on each lot is defined by the Closing Date + number of months defined in the COS Processing Rules.

You may want other costs to continue to post to the lot after this date, such as Warranty.

Define the overrides for Warranty and other costs.

Use Global Exceptions to manage all lots closed in the month at one time.

Home Production > Processing

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Other Home Production Reports

Home Production Reports > Analysis Reports (Lot by Lot)• Detailed Cost Review

• Detailed Cost Analysis

• Detailed Profitability

• Lot Product Gross Margin

• Commitment Analysis

Home Production Reports > Project Analysis (Group of lots or all lots)• Summary Cost Review

• Summary Cost Analysis

• Summary Profitability

• Summary Estimated Cost to Complete

4 General Ledger

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Balance HC and GC Control Accounts

Administration > Checks and Balances > Home Costing > Cks H/C to Ctl AccountAdministration > Checks and Balances > General Ledger > Cks G/C to Ctl Account

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P&L Spreadsheet

GL > Reporting

For each company generate and review the P&L Spreadsheet which can be exported to Excel

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Journal Registers

GL > AdministrationYou may choose to generate the journal from each of the key areas in the system that combines all transaction in the period and summarizes the total GL accounts impacted.

Great tool for Audits

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Activate GL Periods

GL > Administration

After all adjustments have been completed, lot the GL periods.

Just like AP and AR, this can be done for all companies at one time if desired.

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Active Period Report

GL > AdministrationAre you sure that all appropriate periods are closed?

Leaving periods open can lead to errors in prior periods.

Review all open periods with one simple report.

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Active Period Report

GL > Administration• Easily review open periods by Company, Year, Month.

• The report is also available for AP and AR

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Financial Reporting

You are ready to generate your financial statement package

• Financial Statement are user defined

• Build multiple formats

• Save layouts per company to Library

• Auto Generate Library

5 YEAR END ITEMS

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Move AR to History

AR > Administration

• Archive older AR records and keep your database running quicker

• Items moved to history can be picked up in reporting – see checkbox “include history”

• Enter the desired date

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Move AP to History

AP > Administration• Archive older AP records and keep your database running quicker

• Items moved to history can be picked up in reporting – see checkbox “include history”

• Enter the desired date

Options:

• By Invoice Date

• By Posting Date

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Supplier Status Change

AP > AdministrationClean up your supplier master

Show all suppliers that have not been used since “as at date”

• Returns all supplier that match criteria

• Individual set to inactive, hidden or both

• Use buttons to move all to Inactive, Hidden or both.

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Move PO’s to History

Purchasing > Utilities• Archive older PO records and

keep your database running quicker

• Items moved to history can be picked up in reporting –see checkbox “include history”

• Can be used to bring back Historical items

• Move all items in within a date range, or add more conditions to reduce data

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1099 Processing (United States)

Generate your 1099 documents from NEWSTAR – printed or electronic copy

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T5018 Processing (Canada)

Generate your T5018 documents from NEWSTAR – printed or electronic copy

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Did You Know?

GL > Reporting > Wide General LedgerGreat for year end analysis – select Page Break and Excel – get one worksheet per GL account

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info@constellationhb.com | www.constellationhb.com

PRIVATE & CONFIDENTIAL Copyright © 2016 Constellation Home Builder Systems. All rights reserved.

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Elaine MasseyAssociate Director of Professional Services

emassey@constellationhb.com416-677-7644