Friday Feature - Closing Cash

There is no denying it: cash is king. Really, at any time, but especially at year end. When it is time to stop spending cash, cash must be closed (by order of the king or COE or district). Escape Online gives you an easy-to-use tool to enter cash-close dates and a cascading hierarchy for COEs and districts to work in tandem. We actually give you two activities to control the dates: the Fiscal Year Status (System) activity for COEs and the Fiscal Year Status activity for districts. Of course, the system activity takes precedence. But they both work on the same premise.

The dates entered control when each accounting period stops allowing changes to cash (no journal entries – manual or system – can post to cash), and when the period is completely closed (no transactions can be posted).

Fiscal Close Dates
Fiscal Close Dates

Check it out!

See how you can enter separate dates for cash and close. I took a peek at how our customers are using this and there is a wide variety of philosophies.

Some COEs enter the dates in their activity and then their organizations enter even more restrictive dates. Other COEs don't enter any dates, giving their organizations complete control.

One of our stand-alone districts only has close dates for interim reporting. Another stand-alone district only has close dates for the end of the year.

As always, Escape Online provides tons of flexibility!

Let's take a closer look at the live sample shown here, particularly the June dates, marked with the red arrow.  Notice how the dates are different. Let's talk about what that means.

The June Close Cash date is 7/31. If a user tries to post a journal entry (manually or through a system process) that affects June cash after July 31, Escape Online is NOT going to post that journal entry. Instead, it is going to give the user an error message, put the journal entry on hold, and write a history record to the journal entry stating why the JE did not post.

The June Close date is 9/30. This works the same as the close cash date, except it goes past worrying about affecting cash. It simply won't allow any journal entry transactions to post for June after September 30.

Now that kind of control is worth a kingly sum.