Step-by-step guide
| STEPS | |
|---|---|
1) Check all Journals, Orders, Invoices section Check all batches of General Journal, Payment Journal, Cash Receipt Journal, Purchase Journal, Item Journal, Phy. Inventory Journal, Recurring Journal, Sales Order, Sales Invoice, Purchase Order, Purchase Invoice etc., to ensure all entries of the current year is being posted. | |
2) Close Accounting Period Search “Accounting Period”, then click “Close Year”. | |
3) Close Income Statement
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“BALANCE” Dr P/L account 1 $100 Dr P/L account 2 $200 Dr P/L account 3 $300 Cr Retained Earning $600 “DETAILS” Dr P/L account 1 $100 Cr Retained Earning $100 Dr P/L account 2 $200 Cr Retained Earning $200 Dr P/L account 3 $300 Cr Retained Earning $300 |
4) Post the Journal Batch for the closing entries IMPORTANT: Some GL account is request dimension when post but the dimension is not necessary for closing entry. To post the closing entry, please remove all value posting = “Code Mandatory” for GL account (table for default dimension) then post the closing batch and import the original default dimension for G/L account after post. | Steps for remove all value posting = Code Mandatory for G/L Account 1) Go to configuration package (current package: DIMENSION-CLOSE_FY) 2) Select Table ID 352 Default Dimension 3) Select action Table => Fields 4) in Config. Package Fields for Table 352, select Include Field Table ID, No., Dimension Code, Value Posting
5) Select action Table => Filter 6) Filter Field ID 1 Table ID, Field Filter = 15
7) Select action Excel => export to excel 8) Save the excel file for import back to system after post 9) Save as a new file and remove all "Code Mandatory 10) Back to the configuration package, select action Excel => import from excel 11) Import the file which is removed all code mandatory 12) Select action Function => apply data 13) After post the closing batch replete step 10 and import the original file which is exported by step 7 and then apply data |
5) Expectational Case - Audit Adjustment User can enter the audit adjustment after close income statement. Enter the general journal for the adjustment then run the close income statement (step 3) again after the audit adjustment entries is posted. | Note: If any entries posted for the closed period, system will have indicator in back-end, refer to screen capture below, the field named Prior-Year Entry. If Prior-Year Entry = Yes, that means the entry’s posting date is in closed accounting period. User run the income statement again after the entries (i.e. entries for adjustment) is mainly for update the income statement according to the new entries for the period is created. Therefore, no need to re-open and close the period again for enter the adjustment entries. Just run the closing statement for update the figures for the adjustment.
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Summary of the Year End Procedures
Steps | Year End Procedures | Remarks |
1 | Close Accounting Period for the year | Once it is closed, it cannot be re-opened. But User can still input entries into the closed FY. |
2 | Close Income Statement for the year | To transfer P/L data to Retained Earnings |
3 | Book Late Accounting Entries / Audit Adjustments for the year | Because the accounting period is closed, these entries with have a "Yes" under Prior Year Entry (Back-end indicator). |
4 | Close Income Statement for the year again | To transfer those P/L Late Entries/ Audit Adjustments to Retained Earnings |