Timely and accurate end of month processing is the backbone of financial reporting in the energy industry. For accounting analysts and operations managers, mastering this critical phase is essential for maintaining compliance, ensuring data accuracy, and fostering effective decision-making.
GASTAR contains a multi-layered Gas Accounting Module that connects natural gas operations with end of month accounting and financial reporting. By implementing the streamlined workflows GASTAR provides, energy companies can not only meet tight deadlines but also gain an edge in operational and financial oversight.
One GASTAR client said, “The reason we continue to choose GASTAR is we have been able to quickly and successfully close the month without any issue for over 20 years.”
GASTAR transforms the reconciliation and reporting landscape through two key modules:
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- Contract Processing for Accounts Receivable (AR) and Accounts Payable (AP): This module manages AR Invoicing, AP Reconciliation, and Settlement. It also supports invoice approval and data interface to the General Ledger (GL) System.
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- Managerial Accounting (MA) Add-in: This module aggregates transaction data into company-specified roll-up account categories. For example, it can aggregate natural gas purchases as a total with subtotals for Baseload, Spot, and Call Options.
GASTAR End of Month Processing
GASTAR begins the End of Month close for AR and AP by processing each contract type from the operational data tables into the Accounting and KPI Reporting tables. This step can be performed before the formal End of Month close to review all transactions and forecast cash requirements for AP and cash receipts for AR.
Following End of Month processing, transaction data can be verified for accuracy and approved. GASTAR can issue the sales invoices, or invoice determinants can be automatically exported to the company AR system through an interface. A comprehensive Vendor Expense Invoice Processing Module matches vendor invoices to their GASTAR equivalents. This vendor reconciliation process is designed for high efficiency, enabling quick approval of invoices that match GASTAR data while flagging those that require operational correction and reprocessing.
Managerial Accounting (MA) Module
GASTAR’s Managerial Accounting (MA) add-in processes transaction data into the company’s approved reporting hierarchy. This structure supports analytics and provides data for management decision-making. The output typically includes a list of Managerial Accounts that mirror an income statement, showing Revenue and Expense Accounts with a rollup total to the AR and AP totals.
The MA module also provides both an Accrual and an Actual summary of all accounts, including MA Accounts linked to GL Accounts. For example, a Rollup of Natural Gas Purchases will link to the corresponding GL Account. Similarly, Transportation Service Provider and Storage Expenses are rolled up to their appropriate GL Accounts. The MA module supports both internal and external audit requirements as well as SOX disclosure.
The Importance of Efficient End of Month Processing
Efficient End of Month processing is an essential operational advantage in the natural gas industry. It ensures organizations remain compliant, improves cash flow management, and facilitates faster, more accurate reporting. By leveraging GASTAR tools like KPI reporting, shadow G/L structures, and platform integration, accounting departments can reduce reconciliation timelines while improving workflow efficiency and accuracy.
Organizations that prioritize these advancements set new standards for operational excellence. If your team is struggling with manual processes or outdated systems, it may be time to evaluate your systems and integrate a comprehensive solution to transform your End of Month accounting.
