Month-end closing in 1C:ERP WE is a key procedure to ensure accurate accounting and reporting.

     This process requires a number of consecutive actions that include checking data, closing accounts, calculating depreciation, calculating payroll and taxes, and generating reports.

In this article, you can find out month-end closing steps, possible issues, and how to eliminate them.

1. Setting up month-end closing in 1C: ERP WE

To set up automatic month-end closing in this solution, use the following settings:

To correctly perform month-end closing in 1C:ERP WE:

1. Before you start the month-end closing procedure:

Check data correctness. Make sure that all source documents of the current month are posted and processed. This includes purchases, sales, transfers, and write-offs.

Check account balance. Check that all account balances correspond to actual data. This is important for inventory accounting and settlements with counterparties and personnel.

The system can automatically check data availability and correctness of values using customized ….

2. Close the following accounts:

• Close costs accounts. All costs must be allocated to appropriate accounts

• Close income accounts. All income must be allocated to appropriate accounts.

3.    Depreciate fixed assets which includes calculating and recording depreciation charges for the current month. Make sure that all fixed assets are accounted for and depreciation is calculated correctly.

4. Calculate payroll including accruals and deductions for all employees

5. Calculate all taxes and contributions to pay in the current month. This includes income taxes, VAT, insurance contributions, and other required payments.

6. Check whether all cash outflows and inflows are recorded correctly and perform reconciliation with the bank to close current accounts.

7. After all month-end closing transactions are performed, generate the required reports: balance sheet, statement of financial results, cash flow statement and other unified forms. Below, you can see screenshoots with examples of reports generated during month-end closing.

2. Possible month-end clothing issues in 1C:ERP WE

Let us consider common issues and errors that may occur in 1C:ERP WE during month-end closing:

Cost allocation errors. Sometimes, errors related to incorrect cost allocation may occur during month-end closing. This can lead to incorrect data in reports.

Solution: Check whether cost accounts are set up correctly and data is correct. If you find errors, correct them before you start month-end closing.

Incorrect balances. Incorrect balances may lead to distorted financial results and errors in reports.

Solution: Regularly reconcile account balances with actual data. Make sure that all document are correctly recorded in the system.

Depreciation calculation issues. Errors in calculating fixed assets depreciation may lead to incorrect depreciation cost accounting. 

Solution: Check deprecations group settings and fixed assets parameters. Make sure that all fixed assets are correctly recorded and depreciation is correctly calculated.

Payroll calculation errors. Incorrect payroll calculation data may lead to reporting errors and incorrect settlements with employees.

Solution: Before you calculate payroll, check whether employee data, including rates and deductions, are correct. Check whether calculation results are fully correct.

Tax and contribution calculation issues. Issues in calculating tax and contributions may lead to issues with regulatory authorities and fines.

Solution: Make sure that tax and contributions rates are set up correctly. Reconcile your calculations with tax reports to check data correctness.

• Current accounts closing issues . Errors in closing current accounts may lead to inconsistencies in accounting and financial reporting.
• Solution: Apply regular reconciliations of current account data with bank statements. Make sure that all receipts and payments are correctly reflected in the system.
• Month-end closing in the 1C:ERP WE configuration is a complex but important process that requires attention and accuracy. By following the instructions provided and regularly checking the data, you will be able to minimize errors and ensure the correctness of accounting and reporting. Proper organization of the month-end closing process helps improve financial control and increase the efficiency of the enterprise management system.