Sales Ledger Period Close Offs

Sales Ledger Period Close Offs

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We run a 4-4-5 accounting calendar and close the sales ledger off at the end of each accounting month. However we also do a close down at the end of each calendar month. Is this normal practice in most companies as it seems a bit repetitive to me?

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By AnonymousUser
21st Sep 2004 21:53

We do it too!
We also run a 4 4 5 calendar and close at period end but we run reports for the sales ledger at month end too.
We run 4 4 5 as we are a manufacturing business and this suits our costing/reporting.
However the sales ledger is 'closed off' at month end too as this gives a true guide of debtors and debtors days. People expect 'end of month statements' and a lot of people pay by them and/or on end of month terms. Therefore the month end aged list is a good guide to calculate expected cash flow.

Hope this helps.
(Sorry it's a bit late!)

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By velohead
10th Aug 2004 21:15

only do once
We use a '4-4-5 like' method.

Our sales ledger is run on a weekly basis, and our financials (ie P&L) is run on a calandar month basis.

Our monthly S/L close off is done at either 4 or 5 week periods, but only once. However, the S/L reports at m/end are exactly like those at week/end, so we still get full reporting at whatever point.


Just a question on 4-4-5 .......
do you do 4-4-5 followed by 4-4-5 followed by 4-4-5 or ...
is each calendar month judged on it's own merits. ie it may be 4 or 5, so you may get a 4-5-4, 4-4-5, 4-4-4, 5-4-4 if you see what I mean ?

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By User deleted
11th Aug 2004 10:47

Raymond
We follow a 4-4-5 every month unless it doesn't coincide with the year end position close enough.

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By AnonymousUser
09th Aug 2004 14:33

Excuse my ignorance, pls
What is 4-4-5 accounting calendar?

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By dave478
09th Aug 2004 16:28

Uncommon
In my experience this is uncommon. In using a 4-4-5 calendar the monthly period end is usually the Friday at the end of the 4th or 5th week. There should be no need to do a second ledger close at the calendar month end

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