General Ledger - Year End

General Ledger

1. Make certain that you have run the Period End Update for all applicable subsidiary modules for the last fiscal period.

2. Run all General Ledger period end tasks for the last fiscal period:

   1. Verify that all Recurring Journal and Account Allocation entries have been made and updated

   2. Verify that all period end adjustment entries have been made and updated.

   3. Print the Transaction History, Summary Activity and GL Trial Balance reports on the General Ledger Reports menu.

   4. Print Financial Statements and review.

3. Run the Period End Update on the Period End Processing menu for the last fiscal period.

Note: You may continue to process transactions into the next year without closing the current year (see Step #4).  

However, once you close the last fiscal period, only Journal ID codes with the Year-end Adjustment (Y/E Adjs?) checkbox marked may be used to post transactions to the incomplete year.

4. Run the Update Beginning Balances task on the Period End Processing menu.  This task will bring balances forward into the next year.  Retained earnings will be calculated from the accumulated difference between the income and expense accounts.  This difference is posted to the Retained Earnings account specified in the parameters.  The ending balances for Asset, Liability and Capital accounts will become beginning balances for the new year.  

 

Note: You may run the Update Beginning Balances task as many times as necessary.

5. If necessary, make all year-end adjustments using a Journal ID code with the Year-end Adjustment (Y/E Adjs?) checkbox marked.  Date these adjustments in the last fiscal period (a warning message displays indicating that the last period has been closed).

6. Create a special backup tape for year-end.  Label and store for several years.

7. Run the Year-end Update task on the Period End Processing  menu.  The update performs the following tasks:

   1. Current Year Actual and Budget figures for each general ledger account are moved to the prior year history file.

   2. Next Year Actual and Budget figures are moved to the current year.

   3. Year-To-Date Profit (or Loss) is calculated from the accumulated difference between the Income and Expense accounts, and posted to the Retained Earnings account specified in the parameters.

   4. Beginning balances for Income and Expense accounts are set to zero.

   5. Ending Balances for Asset, Liability and Capital accounts become Beginning Balances for the new fiscal year.  An “Update Beginning Balances” register is automatically generated.

   6. The Prior Year Closed? checkbox is marked on the Fiscal Calendar.