Year End Procedures

Year-end processing is simply following a procedure, but knowing when and how to coordinate it with each of the ACCPAC programs takes judgement based on how your business operates. It is not necessary to wait until each and every entry for last year has been posted before you start the current year. The summaries for each of the core modules are listed on the following pages in the order in which they are normally closed. If you close them in a different order, you may get quite different results. Usually they are closed individually over a period of time rather than all the same day. You may have additional unique requirements, but these are the basics.

Essentially, year-end (and period/month end) procedures do not create any accounting entries in the subsidiary ledgers (IC, AR, AP and IR, which may or may not be a subsidiary ledger - nor OE which is not a subsidiary ledger). Year end simply moves the current year's data to last year and discards what was last year's data, as well as re-setting all the batch numbers back to 1 (Note7). The GL does create a posting journal when it closes (6.8.2) all of the "I" accounts into the "R" account(s) - budgets are not touched by the year-end process.

Under each program, the sequential numbers on the left are line numbers for identification purposes only. The second set of numbers are the menu choices starting from the master menu ‑ these numbers may also appear in brackets in the text.

ORDER ENTRY 6.5

21 - - -  Complete normal month end procedures.
22  3.1.2 Optionally print Order Action Report if not done as part of month-end and adjust the orders as necessary. This should ensure that all goods that have been shipped have been invoiced.
23 - - - Backup onto diskettes and place in permanent storage.
24 3.2.3 Optionally print Summary Statistics
25 3.1.3 Optionally print Order History and purge.
26 6.5 Optionally if automatic numbering is used, change them up to the next 1,000 or 10,000 so that you can easily distinguish what fiscal year they pertain to.
27 - - -  Do a regular backup and check data integrity (F3)
28 - - - OE is now ready for the New Year and it is OK to post orders (which have no accounting significance). DO NOT POST ANY INVOICES (which changes quantities in IC) until IC has been closed for the year. In the meantime, for cash sales use the order confirmation spec as a “pro forma” invoice. For the taxes to calculate properly you must have the processing option “ allow quantity shipped on orders” set to “yes” in the company profile (6.1) second screen and fill in the shipped quantity.

INVENTORY RECEIPTS 6.5 (Note 2)

21 - - - Complete normal month end procedures.
22 3.1.2 Optionally print outstanding Inventory Orders report if not done as part of the Month End, and adjust the orders as necessary. This should ensure that all goods that have been received have been recorded as received.
23 3.1.4 Optionally print outstanding Receipts Invoice List. – Note 2
24 - - - Back up onto diskettes and place in permanent storage.
25 3.2.2 Optionally print Tax Tracking report.
26 3.2.3 Optionally print and purge Tax Summary report.
27 - - - Do a regular backup and check Data Integrity (F3).
28 - - - IR is now ready for the New Year and it is OK to enter new PO’s (which have no accounting significance). DO NOT PROCESS ANY INVENTORY RECEIPTS (this would change cost & quantities in IC) until IC has been closed for the year.

INVENTORY CONTROL 6.5

21 - - - Complete normal month end procedures.
22 3.6.5 Print Physical Inventory worksheet & create adjustment workfile.
23 3.6.2 Enter physical count.
24 3.6.3 Print inventory reconciliation and adjust as needed.
25 3.6.4 Post inventory reconciliation.
26 4.1.2 Print item valuation for your accountant.
27 5.2.1 Do Period End if not already done as part of month-end.
28 - - - Backup onto diskettes and place in permanent storage.
29 3.1.4 Print and purge Receipts Audit List (Note 1).
30 3.2.2 Print and purge Shipment Audit Lists (Note 1).
31 3.3.2 Print and purge Adjustment Audit Lists (Note1).
32 3.4.2 Print and purge Stock Transfer Audit List (Note 1).
33 3.5.2 Print and purge Assembly Audit List (Note 1).
34 4.4.3 Optionally print and purge transaction history (Note 1).
35 4.4.5 Optionally print and purge tax summary.
36 4.4.6 Optionally print and purge tax tracking (Note 1).
37 4.2.4 Optionally print and purge sales history (Note 1).
38 4.2.5 Optionally print summary statistics.
39 5.2.2 Do year-end processing.
40 4.1.5 Optionally print slow moving item list.
41 1.1.1 Optionally delete items identified above. Note 5)
42 - - - Do regular backup and check data integrity (F3).
43 - - - IC is now ready for the New Year and in OE if it has already been closed for the year, it is OK to post invoices (which will change quantities in IC). It is also OK to post orders in OE (which have no accounting significance).

ACCOUNTS RECEIVABLE 6.5

21 - - - Complete normal month end procedures (Note 3).
22 3.1.2 Ensure all invoice batches have been posted.
23 3.2.5 Ensure all cash batches have been posted.
24 3.3.3 Ensure all adjustment batches have been posted.
25 4.3.3 Print aged trial balance for accountants.
26 5.6 (Note 3) & Do Period End if needed at this time. (Which may also purge Customer transaction history).
27 - - - Backup onto diskettes and place in permanent storage.
28 3.1.6 Print and purge invoice posting journals (Note 1).
29 3.2.6 Print and purge cash posting journals (Note 1).
30 3.3.4 Print and purge adjustment posting journals (Note 1).
31 4.4.1 Print and purge batch status for: invoices; cash; adjustments.
32 4.3.4 Optionally print customer list and statistics.
33 4.3.5 Optionally print and purge tax tracking report (Note 1).
34 5.7 Do year-end processing (Note 7).
35 1.2 Optionally delete inactive customers.
36 - - - Do regular backup and check data integrity (F3).
37 - - - AR is now ready for the new year and if OE and IC have already been closed for the year, it is OK to do a day-end in OE (which will create an invoice batch here in AR, if this option is chosen in the Company Profile, screen 2).

ACCOUNTS PAYABLE 6.5

21 - - - Complete normal month end procedures (Note 3).
22 3.1.5 Ensure all invoice batches have been posted.
23 3.2.3 Ensure all adjustment batches have been posted.
24 4.1.4 Ensure all manual cheques have been posted.
25 4.3.2 Ensure all system cheques have been posted.
26 5.1.1 Print Open Payables report for your accountants. (Note 6).
27 6.5 Note 3 & Do period end process if needed at this time.
28 - - - Backup to diskettes and place in permanent storage.
29 3.1.6 Print and purge invoice posting journals (Note 1).
30 3.2.4 Print and purge adjustment posting journals (Note 1).
31 4.1.5 Print and purge manual cheque register (Note 1).
32 4.3.3 Print and purge system cheque register (Note 1).
33 4.5.4 Print and purge reconciled cheques posting journal (Note 1).
34 6.1.2 Print and purge period end posting journal (Note 1).
35 4.4 Print and purge check number audit list (Note 1).
36 5.1.2 Optionally print vendors transactions (Note 1).
37 5.1.6 Optionally print vendors list and statistics (Note 1).
38 5.1.7 Optionally print and purge tax tracking report (Note 1).
39 6.2 Do year-end process (Note 7).
40 1.2 Optionally delete inactive vendors
41 - - - Do a regular backup and check data integrity (F3)
42 - - - AP is now ready for the New Year.

GENERAL LEDGER 6.5

21 - - - Complete normal month end procedures.
22 3.1.2 Ensure all sub ledger batches have been retrieved.
23 3.1.4 Optionally archive all batches under their own number.
24 3.3.1 Post all batches.
25 3.4 Print posting journal and file as usual.
26 4.1 Optionally Print the Financial Statements for your accountant.
27 5.2 Optionally Print a trial balance for your accountant.
28 5.3 Optionally print GL listing for your accountant.
29 - - - Backup onto diskettes and place in permanent storage.
30 6.8.1 Consolidate posted transactions.
31 6.8.2 Note 4 - Close year.
32 3.4 Print and purge posting journals (Note 1).
33 5.5 Print and purge batch status report (Note 1).
34 6.8.3 Change fiscal year.
35 6.1 Edit Company profile, Fiscal Period calendar to change year in report dates.
36 (Note 3 & 7) Do Period End in AP and AR if needed.
37 Do a regular backup and check data integrity (F3).
38 GL is now ready for the New Year. If you subsequently have entries to post to last year, just enter them in a normal batch in the current year, probably use period 12 or 13, archive it if you are running concurrent GL’s then special post to previous year (3.3.2). Any amounts posted to "I" accounts will be automatically closed out to the DEFAULT retained earnings accounts as set up in the departments (6.3.1).

NOTE 1

Depending upon what options have been selected in the company profile, you may not be able to, or need to print and purge all items listed.

Because in our month end procedures we suggest printing but not purging all audit list as you go through the year, they can be purged as part of the year end procedures by printing to a file and then accepting the option to purge them. Use F3 to print only to the default file - chose the option to overwrite. Or change the file name from PLUS.PRN TO NUL.PRN to not create a file.

Another option is to print the audit lists to separate files at the same time as they are printed to a printer and then purge them. The files that have been printed can be read by MS Word (and probably other programs as well) so that they are still available off-line from ACCPAC.

NOTE 2

In the IR company profile (5.1. second screen) there are two options to be aware of. The first is ‘Interface with AP'‘ and if this is answered ‘yes’ the second is 'Post delivery notes to AP’ and if this is answered 'no', Inventory Receipts becomes a subsidiary ledger for the GL account 'Account Payable clearing account' which is on the 'interface posting options' (third screen) in the company profile.

To print out the detail of this subsidiary ledger use (3.1.4) ‘Print outstanding receipts invoice list'. This would be done after the day-end process (1.6) had been run in IR.

NOTE 3

See separate 2 pages on ACCPAC GL Version 6.5 Year-End Options. This discusses the procedures that can be used where you must produce current year's entries in AP or AR before last year has been completed. You may wish to complete the year end in these subsidiaries before you have closed the GL, in which case you should not complete the period end processing until last year's GL is complete. If you do, you may not be able to produce a trial balance that will reconcile with the GL. Also discussed is the method of running this year's GL and last year's GL concurrently. This has several advantages: (a) It allows you to keep current which can be extremely important if your volume of daily transactions is high, or if it takes a long time to close last year. (b) It keeps all the transactions for last year in one GL so that a back up of that GL is all that is needed. Otherwise you need a back up of the current GL as well to pick up all the entries that were posted in that GL to previous year.

NOTE 4

Before Closing the year in the GL, be sure that all accounts are properly classified - i.e. that all profit and loss accounts are type “I” for Income. Comparing the net income on your financial statements with the total of the “I” accounts that appear on the bottom of a trial balance (5.2) can do this. You should also review the chart of accounts on the screen (2.1) to ensure they are the correct types - it is hard to change after a year-end.

NOTE 5

In IC before deleting items be sure they have not been invoiced during the time you retain completed orders otherwise your data integrity check will fail.   If you frequently delete items, it is best to use the ACCPAC Add-in “Item Number Change” to combine all deleted items into a “deleted item code”.

NOTE 6

See Separate two pages ACCPAC Year End and your Accountants.

NOTE 7

If you wish to carry the AP & AR statistical data on a calendar year basis rather than on your fiscal year basis it can be done.   This will not change your accounting records in any way. Simply do the Year-end process at December 31st which will mean your batch number will also revert to “1” at that time.

 


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