Year End and your Accountants
There are three items to watch for at your year-end:
1. Be sure that the year-end listing of the sub ledgers is complete and accurate and balance to their control account.
2. Have an electronic copy of last year’s data set, so that your accountant or you can review it as part of the completion of your year-end.
3. Ensure that you have recorded the year end entries and made the necessary reversals to keep your subsidiary ledgers in balance with their control accounts in the GL.
In Accounts Payable
If you chose menu choice 5.1.1, be sure to watch the date entered because any entries after that date will not appear on that report. On this report you CALCULATE BALANCE AS AT (this allows you to run reports at previous dates). I would use the date Dec 31, 2009 on this report.
If you chose menu choice 5.1.3, the date entered is used to AGE AS OF, which means that all entries are included; those beyond the date are shown in the current column.
In Accounts Receivable
If you chose menu choice 4.3.1, the date is used to AGE AS OF which means all entries are included, they are just shown in the various aging columns. Menu 4.3.2 gives you the choice to CALCULATE BALANCE AS AT (this allows you to run reports at previous dates) or AGE AS AT (this will give you all the entries, they are just shown in the various aging columns - those beyond the date are shown in the current column).
In Inventory Control
Menu 4.1.2 Item Valuation gives you the current values, and there is no option to backdate this report. Therefore you must run this report before any accounting entries are made for the new fiscal year.
In Inventory Receipts
In the 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 menu choice 3.1.4 'Print outstanding receipts invoice list'. This would be done after the day‑end process (menu choice 1.6) had been run in IR. This should balance to the control account after, in the AP, the entries are imported (3.1.3) and posted (3.1.5) in the AP; and, in the GL the entries retrieved (3.1.2) and posted (3.3.1) in the GL.
The option of keeping open the GL for the current year and last year is discussed on two separate pages titled ACCPAC GL Version 6.5 Year-End Options.
Your accountant’s year-end entries must always be posted in the current GL but are posted to previous year (3.3.2). If you have only a current GL, create the entries using the current date and fiscal period 12 and show in the reference field the cross-reference to your accountant’s entries.
If you have last year’s GL still open, create the entries in the current year’s GL (3.1.1), archive the batch (3.1.4), then post it to the previous year (3.3.2). In the last year’s GL you would create a recurring batch (3.1.4). Note you can select the data path and point to your current year’s GL data path to retrieve the archived batch from your current years GL. This batch is then posted to the current year (3.3.1).
Your accountant’s year-end entries may consist of 3 types of entries and all of these entries are often made to your AR and AP control accounts in error.
The first are correcting entries and this may include entries to bring your control accounts and subsidiary ledgers into balance. These are permanent entries and do not need to be reversed in the next fiscal year.
The second are accrual entries such as recording additional payables at the year-end and these are normally reversed on the first day of the following fiscal year. Another method is to debit the accrued AP when you receive each invoice that has been accrued
The third are re-classification entries such as transferring the credit balances in your AR to AP for financial statement presentation purposes and these are normally reversed on the first day of the following fiscal year.
If you are unclear as to which type an entry is, ask you accountants as it is very important that your year end entries do no throw your control accounts out of balance with your subsidiary accounts.
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