# Month End Reporting Readiness Checklist for Manufacturers > Source: https://netray.co/tools/month-end-reporting-readiness-checklist > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: Free Tools ## Short answer Work through the ERP checks that decide whether month end reports can be trusted: cut off, inventory, WIP, subledger tie out and sign off. ## Category cost-finance ## Industry Discrete Manufacturing ## Audience - Controller - Cost accountant - ERP analyst ## Tool **Kind:** checklist **Scoring Note:** Tick each item you have completed. All critical items must be complete before reports are released to management. **Groups:** #### Cut off and open transactions **Items:** **Text:** All receipts for the period are posted and none are dated in the next period **Critical:** true **Text:** Shipments and invoices for the period are posted, and revenue cut off matches shipping date or terms **Critical:** true **Text:** Goods received not invoiced list reviewed and accrued **Critical:** true Open purchase orders past due reviewed for accrual or cancellation **Text:** Unposted or error status inventory transactions cleared or explained **Critical:** true Intercompany transactions posted on both sides Period lock date set after the final posting window #### Inventory and costing **Items:** **Text:** Inventory valuation report ties to the inventory GL accounts **Critical:** true **Text:** Negative on hand balances listed and corrected or explained **Critical:** true Cycle count adjustments for the month posted and valued Standard cost changes for the period documented and revaluation posted Purchase price variance reviewed for items above the threshold Scrap and rework transactions for the month reviewed against reason codes Excess and obsolete reserve calculation refreshed Consigned and in transit stock classified correctly #### Work in process and production **Items:** **Text:** WIP report ties to the WIP GL accounts **Critical:** true **Text:** Completed work orders closed and variances posted **Critical:** true Work orders with output but no recent activity reviewed Labor and machine hours reported for the period are complete Overhead absorption compared to actual overhead and variance reviewed Backflushed components checked against actual issues for sample jobs #### Subledgers and reconciliations **Items:** **Text:** AP subledger ties to the AP control account **Critical:** true **Text:** AR subledger ties to the AR control account **Critical:** true Fixed asset depreciation run completed Bank and cash reconciliations completed Foreign currency revaluation run with the period end rate Recurring journals and accruals posted and reviewed #### Reports and sign off **Items:** Flash report numbers compared to prior month and budget with variance explanations KPIs recalculated from final numbers and not the interim figures Management report definitions unchanged, or changes documented **Text:** Reviewer sign off recorded with date **Critical:** true Report files archived with the period and version ## Content **Intro:** Month end reports are only as reliable as the cut off and tie out checks behind them. This checklist covers the ERP checks manufacturing controllers run before releasing numbers, grouped from cut off to sign off. **Sections:** #### How to use the checklist **Body:** Copy it at the start of the close, assign an owner to each group and work through it in order. Critical items are the ones where an error changes reported profit or the balance sheet, so release nothing until they are ticked. Export to Excel to keep a signed record for each period. **Bullets:** - Assign group owners before the close starts - Record the date and person for each critical item - Keep the completed list with the period files for audit #### Why tie out comes first **Body:** Operational reports such as inventory valuation and WIP are built from transaction tables, while the general ledger is built from postings. When they differ, the cause is nearly always a timing, a failed posting or a manual journal. Tie out before analyzing variances, otherwise the variance analysis is explaining noise. #### Cut off in a manufacturing business **Body:** Receipts without invoices, shipments without invoices and goods in transit are where profit moves between periods. Check the transaction date rules in your ERP, because posting date and transaction date are not always the same and period locks may apply per module. #### Common mistakes **Body:** Running reports before the last transaction posting window closes, ignoring error queues in the interface, and releasing KPIs from interim data are frequent. Another is changing a report definition during the close, which makes comparison to the prior month meaningless. **Cta:** If close checks mean running many ERP reports by hand, Netray can build read-only checks that run the tie outs automatically and show the query used. **Faq:** #### How long should a manufacturing close take? **Answer:** It varies widely with size and system. Many mid sized manufacturers aim for 5 to 8 working days. The more tie outs run automatically and early, the shorter the final days become. #### Which checks matter most? **Answer:** Receipt and shipment cut off, inventory and WIP tie out to the GL, and subledger tie outs. Errors there change reported profit or assets directly. #### Can I adapt this for my ERP? **Answer:** Yes. Export it to Excel and add the report or transaction name used in your ERP next to each item, plus the owner and the target day of the close. #### Does this cover audit requirements? **Answer:** No. It supports your internal process. Audit and statutory requirements depend on your jurisdiction and auditor and need to be added separately. ## Search terms month end close checklist manufacturing, month end reporting checklist, erp month end close checklist, inventory month end checklist, wip reconciliation checklist, financial close checklist excel, manufacturing close tasks --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json