Approve or reject what Mendiola proposes in a close

During an automated close, Mendiola can prepare two kinds of work for your team: accruals for recurring bills that are missing from the period, and a way to reconcile each bank line that is still open. Each one is a proposal. Nothing is reconciled or posted in Juan until a person approves it.

Before you start

• The company must close Automated. See Let Mendiola check a company's close.
• Mendiola must be allowed to write in the company's Juan. This is off for every company until Mendiola's team turns it on for yours; no settings page turns it on. While it is off, Mendiola drafts nothing, and the period page says "Writing to Juan is switched off for this company, so nothing can be approved or deleted in Juan from here."
• An admin can approve or reject. An assigned member can too when the company's closing settings say Staff may run the review. Everyone else who can open the company can read the proposals.

Accruals Mendiola drafts

Before it checks the period's last month, Mendiola looks for suppliers that billed the company in each of the three months before it but have no bill at all in that month, such as rent, utilities or a retainer. It drafts an accrual only when the bills' own descriptions show a cost that recurs every month.

Each accrual is a draft journal in Juan:

• Its amounts come from the supplier's latest bill, account by account, before VAT, using the figures Juan reports: each line's quantity and unit price, which must add up to the bill's own amount before VAT. Mendiola does not work out VAT. A tax-inclusive bill is drafted only when all of it is on one account, at the bill's own amount before VAT. A bill Mendiola cannot read this way, or one with a line on a control account or an inactive account, is skipped, and the close says why.
• It is credited to the company's accrued expenses account. Without one in the chart, nothing is drafted.
• It is dated the period's last day and reverses on the first day of the next month, using Juan's own reversal date.

The draft is listed under Mendiola drafted on the period's page. Approve and post posts it in Juan. Reject and delete deletes the draft. If the supplier's bill for that month has reached Juan in the meantime, Approve posts nothing and the proposal says the accrual is not needed. Mendiola never drafts the same accrual twice, even after someone deletes it in Juan.

A draft that is still waiting is a draft in the period, so the close stays held until someone decides it.

Bank lines Mendiola proposes

When a close is held because bank lines up to the period end are not reconciled, Mendiola works through them and proposes one way to reconcile each line:

1. By the reference printed on the line, when it names one open bill, invoice or credit note whose open balance equals the line.
2. By Juan's own suggestion, only when Juan is confident, the amounts are equal, and the suggestion agrees with the reference or payer printed on the line.
3. By Mendiola's agent, for the rest. It can propose a match to open documents, a cash entry to an account (for example bank charges), a journal, or that a person should look at the line. Mendiola checks every amount before a proposal is shown.

When two documents could fit, Mendiola does not choose: the line is left for a person. When two bank lines both match the same document, neither is proposed: each is left for a person, because it may be a duplicate import or a payment made twice.

Approve or reject

Open the period on the company's Closing page. Proposals that are waiting are listed first. Each shows the bank line or the accrual, what Mendiola proposes, and why.

• Approve makes that one change in Juan. For a line Mendiola leaves for a person, the button is Take note, and nothing is sent. Mendiola reads Juan again first. If the bank line was already reconciled, the proposal is marked done. If the line or the document changed since the proposal was made, nothing is sent and the proposal says it is out of date.
• Reject records your decision, with a reason if you give one. A rejected bank proposal changes nothing in Juan, and that line is not proposed again until it changes. A rejected accrual is deleted from Juan.

Each proposal can be decided once. Mendiola never repeats a change in Juan: reconciling twice would record a second payment.

When the last waiting proposal is decided, Mendiola checks the period again by itself. If it is now clean, it goes to Review requested as usual. If a newer period has ended by then, your decisions still stand and the newer period's close picks up what is left.

If Juan does not answer

If Juan does not confirm a change, the proposal is marked as not confirmed: the change may have been made. Check the line in Juan. Do not reconcile it by hand twice. Mendiola reads Juan again on the next close and settles the proposal.

Limits

• Mendiola's agent is limited to a monthly budget for your firm. When the budget is used up, the proposals by printed reference and by Juan's suggestion continue, and the remaining lines wait for a person.
• The cut-offs Mendiola uses to decide that a cost recurs, and which of Juan's suggestions to trust, are Mendiola's own and are not yet measured on real books. Every proposal still waits for a person.
• Bank line descriptions and payer names are sent to the AI model that prepares the agent's proposals. Tax identification numbers and links are removed first.
• Other accruals, prepayments and adjustments remain your team's to enter in Juan.