Year End Process (Close Account)

Note:

• New Accounting Period must created before close latest accounting period
• If dimension value is mandatory for some G/L account (for example, Department is mandatory for Office Expenses) user need to set the value posting to No Code for related default dimension.  After the closing entries have been posted, change back the value posting for the default dimension

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 select “Close Year”.

Be aware that once the Accounting Period is being closed, it CANNOT be re-opened, but user can still book entries to the closed accounting period.
The only difference is all entries booked after the accounting period is closed, will have a tick for the "Proid-Year Entry" box (can be found under General Ledger Entries).

3.Close Income Statement

Search “"Close Income Statement”, then fill in the required information

• • Fiscal Year Ending Date - enter the date (i.e. Which is the closing date of your financial year)
  • Gen. Journal Template - select "General" for General Journal (note: Should always use GENERAL journal to book the year end closing entry)
  • Gen. Journal Batch - select batch it use for post the closing entries (e.g. that only be used for year end closing e.g. CLOSE_FY)
  • Document No.  - If user set no. series in the General Journal Batch, system will auto generate document no. However, if user wish to input Manual Document No., just leave the no. series field blank on the General Journal batch and manual input here 
  • Retained Earning Acc. - Choose the Retained Earnings Account from the Chart of Account, in order for system to transfer P/L account figures for the year to Retained Earning Account
  • Post to Retained Earnings Acc. - option for post to Balance or Details for Retained Earnings Acc. 

         If select  “BALANCE” - the entry for Retained Earning Account for the balance to be created.  example as below:

Dr  P/L account 1   $100

Dr P/L account 2    $200

Dr P/L account 3    $300

   Cr Retained Earning     $600

If select “DETAILS” - the entries for Retained Earning Account for according to each balance P/L account to be created. example as below:

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

• • Posting Description - change the default positing description if needs.  The description to be use for the closing entries 

Close by Business Unit Code / Dimension / Inventory Period Closed  - Just leave these blank if these option do not apply to your company.

4. Click OK to Close Income Statement

After input the required fields, click OK to confirm.  If no validation error, the system message "The journal lines have successfully been created" to be prompted.  User can then to go General Journal to check the Batch

5. Check the Year End Closing Entry 

User should check the Year End Closing entry it generated by system then post the entries.  After Posing, all P/L account's balance will then transfer to Retained Earning Account.

Case Handling

If late accounting Entries / Audit Adjustment need to made into closed accounting period, user can post the entries then process Close Income Statement again.

Steps: