Period Accounts Payable Closing

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Period Accounts Payable Closing

 

Accounts Payable in MLS 2026 is organized around payment cycles.

Each vendor account can be assigned to the payment cycle that best matches how and when that vendor should be paid.

Examples:

Immediate / cash payment vendors

Weekly payment vendors

Monthly payment vendors

Special-purpose payment groups

The payment cycle assigned to a vendor is completely user-defined and may be changed whenever necessary.

This flexible structure allows your business to organize vendor payments in whatever manner works best for your operation and cash flow.


Why Period Closing Matters

After payments have been processed, the payment cycle should be closed.

During closing, MLS 2026:

Removes completed transactions from active status

Moves completed items into history

Updates balances and aging totals

Simplifies review of remaining unpaid invoices

Without regular closing:

Open invoice lists become cluttered

Aging becomes less meaningful

Account review becomes more difficult


Performing a Period Close

To close a payment cycle:

1.Select Tools → Period Close

2.Enter the payment cycle to process

3.Enter the closing date

MLS 2026 will process only transactions dated:

On or before the closing date entered


Important Rule

⚠️ The payment cycle and closing date should match the cycle and date used when writing checks.

This ensures:

Accurate aging

Proper historical records

Correct balance processing


What Happens During Closing

MLS 2026 automatically:

Updates vendor balances

Recalculates aging totals

Moves completed transactions into history

Clears fully paid activity from active status

No additional operator action is required.


Payment Cycles Are Independent

Each closing applies only to the selected payment cycle.

If multiple cycles are used:

Each cycle must be closed separately

Examples:

Weekly vendors → Weekly closing

Monthly vendors → Monthly closing

Special vendors → Separate closing


Why Multiple Cycles Are Helpful

Using multiple payment cycles:

Reduces large batch processing

Improves organization

Helps manage cash flow

Allows vendors to be grouped logically

Even businesses paying vendors on the same day often benefit from separate cycles.


Best Practices

Close payment cycles promptly after payments are processed

Use consistent closing dates within each cycle

Keep vendor cycles organized logically

Review open invoices before closing


Example Workflow

SELECT PAYMENT CYCLE
        ↓
PROCESS PAYMENTS
        ↓
PRINT CHECKS
        ↓
RUN PERIOD CLOSE
        ↓
MOVE COMPLETED ITEMS TO HISTORY
        ↓
BEGIN NEXT PAYMENT PERIOD