Month-end Process: BFM Contract Reconciliation

Simona Riftin

Updated 05 June 2026 07:57

Business Forecasting (BFM)

Month-end process: BFM contract reconciliation

Keep Business Forecasting, CWIP and the General Ledger aligned so your Profit & Loss accurately reflects your project activity.

Overview

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.

Post all BFM accruals before rolling BFM.
Perform this reconciliation every month before you move BFM to the next period.

Projects drop out of BFM only when:

They have no financial activity for the current financial year, and
Their status is set to F – Financially Complete.
All status changes for projects to F – Financially Complete should occur prior to snapshot.
You can financially complete a project even if client or subcontractor retentions remain. To process retention later, set the project back to Active, process the retention, then return it to Financially Complete.

Step 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 the BFM Journal Generation screen. 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.

Step 2 — Reconcile BFM with the P&L

This step confirms that BFM values match the P&L. Differences usually indicate missing accruals, incorrect coding or journals to the control accounts, or forward-posted transactions.

Run BFM Contract Reconciliation

1	Go to the Contract Reconciliation report. Business Forecasting > Reporting > Contract Reconciliation
2	Open the BFM Contract Trading Reconciliation report.
3	Compare these current period and YTD values to the P&L: Final Turnover, Recognised Project Costs, and Gross Margin.

For project-level detail, run the BFM Revenue Gross Margin report and review YTD Turnover, YTD Cost, and YTD Margin.

Business Forecasting > Reporting > More BFM Reports > BFM Revenue Gross Margin

Run the Profit & Loss report

1	Go to the Profit and Loss report. 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, and 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.

Step 3 — Find 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), and 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.

You're done when:

✓ All BFM accrual journals have been posted

✓ BFM Contract Trading Reconciliation values match the P&L

✓ Any differences have been investigated and resolved