Periodic A/R closing

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Periodic A/R closing

 

After printing statements, the next step is to close the period.

This step is essential. Delaying closing—even by a few days—can cause your clients’ statements and your internal records to fall out of sync, leading to confusion and difficult bookkeeping issues.

👉 Best Practice:

Always close the period immediately after printing statements.


Why Closing Matters

During period closing, MLS 2026:

Removes completed transactions (marked with * on statements)

Updates account balances

Recalculates aging

Moves completed items into history


Critical Timing Rule

If a transaction is completed after statements are printed but before closing:

It will be removed during closing

It will not appear on any statement

There will be no visible record for the client

This creates:

Customer confusion

Missing documentation

Reconciliation problems


How to Close a Period

1.Select Tools → Period Close

2.Enter the Billing Cycle

3.Enter the Closing Date

oOnly transactions on or before this date are processed

4.Verify:

oBilling cycle matches the one used for statements

oClosing date matches the statement date

5.Enter an Interest Rate (if applicable)

6.Select Process


What Happens During Closing

When you select Process, MLS 2026 will:

Update all account balances

Recalculate aging

Move completed transactions into history

Prepare accounts for the next billing cycle

Progress indicators will display as accounts are processed.

No additional steps are required.


Interest Handling (Optional)

Interest may be applied during closing, but many shops use it selectively.

Interest applies only to overdue balances

It is never applied to current charges

Common Practice

Some businesses:

Show interest on statements to encourage payment

Do not actually post it during closing

This avoids:

Customer disputes

The need to reverse interest later


Optional Cleanup: Zero-Balance Accounts

After closing, MLS 2026 may prompt:

“Do you wish to remove the cycle for accounts with 0 balance?”

If you select Yes:

Accounts with a $0.00 balance will have their billing cycle cleared

This helps:

Reduce clutter in future statement runs

Skip accounts that no longer require processing


Important Reminder

A closing only applies to the selected billing cycle.

If you use multiple cycles (recommended):

You must run separate closings for each cycle


Best Practices

Print statements and close in the same session

Use consistent billing cycles and dates

Double-check cycle/date before processing

Avoid delaying closing under any circumstances