Best Practice Guidelines: Healthcare Management Internal Controls
4. Monthly internal controls summary
4.4. Month end
There are two types of month ends, namely a Debtors month end and a Financial month end. A practice will use both if the practice uses the full financial module of GoodX, otherwise the practice will only use the Debtors month end.
The month end prevents that users can post transactions in previous financial periods, which would result in reports changing - not a good idea!
Some practices' financial periods are from the 1st of the month until the end of the calendar month (30/31st), other practices will work from the 26th till the 25th of the next month.
Process for a month end
- Finalise all the debtor transactions for the financial period
- Do the first month-end through the MedDebs module or GoodX Manage module in the GoodX system
- Finalise all the Debtors journals, Interest, Creditors (Invoices, Payments, and Corrections), Import Bank statements, Main and Auxiliary Cashbook reconciliations and Stock adjustments
- Do the financial month-end through the Financial module in the GoodX system
- Draw the monthly reports.
A Debtors month end is when the Debtors side is closed for all invoices and receipts. No invoices or receipts can be posted to debtors accounts into the previous period after the month end has been done. All invoices or receipts that were not posted, will be posted into the current financial period with their transaction date (service date) when the patient received the service or goods.
The Debtors month end must be done as close as possible after the last day of the financial period.
There is no function to do a creditors month end. The creditors month end is part of the accounting month end. But certain checks need to be done.
The following checks need to be completed before the accounting month end is done:
- Check all creditor transactions.
- Confirm all discounts were posted as discounts and not as a lowered price.
- Confirm all delivery and admin fees were posted.
- Confirm all corrections were done and posted.
Stock controls will be done as described in the Debtor and Creditor controls. If all the transactions for the debtors and suppliers are correct and up to date, the stock will also be up to date and correct.
The following transactions must be checked with the Stock control process:
- Expired stock
- Broken stock
- Lost stock
- Transfer between Warehouse
- Returned stock
Financial Month End
A Financial month end is when the financial books are closed for the specific period and no transactions can be posted into that financial period.
This allows the practice to make corrections and post any Creditors and Financial transactions that happened in that financial period before the reports are submitted to the auditors, SARS or VAT is paid.
If the Debtor and Creditor controls are up to date, the accounting controls will be minimal.
The following can be checked for the monthly controls on accounting:
- Check if all bank statements have been imported for all bank accounts
- Check if all reconciliation of the Main Cashbooks and Auxiliary Cashbook have been done
- Check if all outstanding transactions have been allocated and corrections were made.