Month-end Process: BFM Contract Reconciliation

Simona Riftin

Updated 25 March 2026 06:45

Month-end Process: BFM Contract Reconciliation

This article explains how to complete the BFM Contract Reconciliation process each month in Jobpac. It helps you keep Business Forecasting (BFM), CWIP and the General Ledger aligned so your Profit & Loss (P&L) accurately reflects your project activity.

Before you begin

Complete these preparation steps before you run BFM rollover or start month-end reconciliation.

Financially complete as many projects as possible.
Post all BFM accruals before rolling BFM.
Perform this reconciliation every month before you move BFM to the next period.

Projects only drop out of BFM when they have no financial activity for the current financial year and their status is set to F – Financially Complete. Review the “Checklist to Financially Complete a Project” article if you need to confirm all requirements.

Note: You can financially complete a project even if it still has client or subcontractor retentions. To process retention later, set the project back to Active, process the retention, then return it to Financially Complete.

1. Post BFM accruals

Posting BFM accruals sends your project adjustments through to the P&L. This must be done before you roll BFM to the next month.

1. Go to Business Forecasting > BFM Utilities > BFM Journal Generation.

2. Generate the journals so all accruals and work in progress entries flow into the P&L.

3. Make any corrections needed and run journal generation again. Each run posts only incremental changes.

Note: All BFM journals must be posted before rollover. No new journals will be generated afterward.

2. Reconcile BFM with the P&L

This step confirms that your BFM values match the P&L. Differences generally indicate missing accrual postings, incorrect project coding or forward‑posted transactions.

Run BFM Contract Reconciliation

1. Go to Business Forecasting > Reporting > Contract Reconciliation.

2. Open the BFM Contract Trading Reconciliation report.

3. Compare these values to the P&L:

Final Turnover
Recognised Project Costs
Gross Margin

For project‑level detail, run Business Forecasting > Reporting > More BFM Reports > BFM Revenue Gross Margin and review:

YTD Turnover
YTD Cost
YTD Margin

Run the Profit & Loss report

1. Go to Finance > General Ledger > Financial Statements > Profit and Loss Report.

2. Compare the Month Actual $ and YTD Actual $ values to the BFM reconciliation figures:

Total Direct Revenue
Total Direct Expenses
Gross Operating Profit / (Loss)

Common causes of differences

BFM accrual journals not generated before reconciliation.
Forward‑posted transactions.
Costs posted directly to Job Cost Control Accounts rather than via projects.
Project revenue or costs posted to Indirect accounts.
Projects incorrectly assigned as BFM Project Type X.

Note: CWIP and the General Ledger always match. If BFM matches CWIP, it will also match the P&L.

Finding P&L and BFM differences

If you see differences between BFM and the P&L, use the General Ledger Details report to identify incorrect postings.

1. Run the General Ledger Details report across the period before and after the month with differences.

2. Export the report to Excel.

3. Filter by:

Type 8 transactions (Costs)
Type 6 transactions (Revenue)
Job No (to find transactions not linked to a project)

4. Reverse any unlinked transactions and repost them with the correct project and cost centre.

5. Pivot the Excel data by Job No and Amount, then compare totals to BFM values.

Completing this monthly process helps keep BFM, CWIP and the P&L aligned and ensures your financial reporting remains reliable. For next steps, see the articles on BFM journal posting and project financial completion.