Financial Statements Clean up

ERPNext Accounting
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1

Hello Team,

  1. Am asking for views and suggestions on how I can ensure accurate Financial Statement in the System.

  2. What effective Approach can I use to Clean up our System Financial Statements and Financial Info at large

  3. Could please suggest the kind of Automations, or Restrictions that I can put into place so that to reduce Human Intervention in working with the Financial Part.

Thanks,

2

HI @nik1

The ERP environment requires strict controls on Recording Phase so that clean Reports can be generated.

The first step requires some automation as following;

:arrows_counterclockwise: Automations (System-Driven Financial Processes)

  1. Automated Document Generation

    • Configure system triggers to auto-generate Sales Invoices from Delivery Notes and Purchase Invoices from Purchase Receipts.
    • Utilize Auto Repeat functionality for recurring financial documents.
    • Please make sure to map items with respective GL Accounts either on items, item groups or Brand whichever suites you. The same case applies for customers, suppliers and warehouses.

  2. Automated Notifications and Follow-Ups

    • Implement scheduled jobs or email alerts for Accounts Receivable aging and overdue invoices.
    • Use communication templates and background tasks for automated dunning processes.

  3. Recurring Journal Entries

    • Set up cron jobs or Auto Repeat for routine Journal Entries such as depreciation, payroll accruals, etc.

  4. Bank Integration

    • Enable API-based bank integration like Plaid for direct statement imports.
    • Leverage the Bank Reconciliation Tool to auto-match incoming/outgoing transactions with ERP records.

  5. Budget Enforcement Mechanisms

    • Define budget constraints per Cost Center or GL Account with system-enforced thresholds (hard or soft limits).

The other controls are user access oriented such as;

Access Control & Validation Layers

  1. **Role-Based Access Control **

    • Configure granular User Permissions to restrict financial data access (e.g., specific ledgers, projects, cost centers).

  2. Approval Workflow Engine

    • Design multi-tier approval hierarchies using ERPNext’s Workflow engine for documents like Invoices, POs, and Payments.

  3. Validation Rules and Scripts

    • Use Client-Side/Server-Side Scripts to enforce custom logic (e.g., blocking submissions on credit limit breach or duplicate documents).

  4. Period Locking

    • Utilize the Accounts Freeze Date and User-specific backdated posting limits to prevent retroactive entries post-closing.

  5. Naming Series Protection

    • Lock down naming conventions and restrict edit access to prevent tampering with transaction sequencing.

Automated Reporting and Monitoring

  • Schedule automated dispatch of financial reports (Aging Summary, P&L, Trial Balance) via email using background jobs or report subscriptions.
  • Set up dashboards for real-time financial KPIs using embedded charts and data visualizations.
3

Thanks Fam