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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
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21
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- - -
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Complete normal month end
procedures.
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22
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3.1.2
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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.
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23
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- - -
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Backup onto diskettes and
place in permanent storage.
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24
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3.2.3
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Optionally print Summary
Statistics
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25
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3.1.3
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Optionally print Order
History and purge.
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26
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6.5
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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.
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27
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- - -
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Do a regular backup and check
data integrity (F3)
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28
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- - -
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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.
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INVENTORY RECEIPTS 6.5 (Note 2)
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21
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- - -
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Complete normal month end
procedures.
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22
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3.1.2
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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.
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23
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3.1.4
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Optionally print outstanding
Receipts Invoice List. – Note 2
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24
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- - -
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Back up onto diskettes and
place in permanent storage.
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25
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3.2.2
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Optionally print Tax Tracking
report.
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26
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3.2.3
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Optionally print and purge
Tax Summary report.
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27
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- - -
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Do a regular backup and check
Data Integrity (F3).
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28
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- - -
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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.
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INVENTORY CONTROL 6.5
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21
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- - -
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Complete normal month end
procedures.
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22
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3.6.5
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Print Physical Inventory
worksheet & create adjustment workfile.
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23
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3.6.2
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Enter physical count.
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24
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3.6.3
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Print inventory
reconciliation and adjust as needed.
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25
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3.6.4
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Post inventory
reconciliation.
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26
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4.1.2
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Print item valuation for your
accountant.
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27
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5.2.1
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Do Period End if not already
done as part of month-end.
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28
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- - -
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Backup onto diskettes and
place in permanent storage.
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29
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3.1.4
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Print and purge Receipts
Audit List (Note 1).
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30
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3.2.2
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Print and purge Shipment
Audit Lists (Note 1).
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31
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3.3.2
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Print and purge Adjustment
Audit Lists (Note1).
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32
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3.4.2
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Print and purge Stock
Transfer Audit List (Note 1).
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33
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3.5.2
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Print and purge Assembly
Audit List (Note 1).
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34
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4.4.3
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Optionally print and purge
transaction history (Note 1).
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35
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4.4.5
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Optionally print and purge
tax summary.
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36
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4.4.6
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Optionally print and purge
tax tracking (Note 1).
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37
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4.2.4
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Optionally print and purge
sales history (Note 1).
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38
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4.2.5
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Optionally print summary
statistics.
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39
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5.2.2
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Do year-end processing.
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40
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4.1.5
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Optionally print slow moving
item list.
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41
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1.1.1
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Optionally delete items
identified above. Note 5)
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42
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- - -
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Do regular backup and check
data integrity (F3).
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43
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- - -
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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).
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ACCOUNTS RECEIVABLE 6.5
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21
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- - -
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Complete normal month end
procedures (Note 3).
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22
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3.1.2
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Ensure all invoice batches
have been posted.
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23
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3.2.5
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Ensure all cash batches have
been posted.
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24
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3.3.3
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Ensure all adjustment batches
have been posted.
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25
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4.3.3
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Print aged trial balance for
accountants.
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26
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5.6
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(Note 3) & Do Period End
if needed at this time. (Which may also purge Customer transaction
history).
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27
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- - -
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Backup onto diskettes and
place in permanent storage.
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28
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3.1.6
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Print and purge invoice
posting journals (Note 1).
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29
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3.2.6
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Print and purge cash posting
journals (Note 1).
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30
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3.3.4
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Print and purge adjustment
posting journals (Note 1).
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31
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4.4.1
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Print and purge batch status
for: invoices; cash; adjustments.
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32
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4.3.4
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Optionally print customer
list and statistics.
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33
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4.3.5
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Optionally print and purge
tax tracking report (Note 1).
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34
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5.7
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Do year-end processing (Note
7).
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35
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1.2
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Optionally delete inactive
customers.
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36
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- - -
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Do regular backup and check
data integrity (F3).
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37
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- - -
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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).
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ACCOUNTS PAYABLE 6.5
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21
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- - -
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Complete normal month end
procedures (Note 3).
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22
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3.1.5
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Ensure all invoice batches
have been posted.
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23
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3.2.3
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Ensure all adjustment batches
have been posted.
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24
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4.1.4
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Ensure all manual cheques
have been posted.
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25
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4.3.2
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Ensure all system cheques
have been posted.
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26
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5.1.1
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Print Open Payables report
for your accountants. (Note 6).
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27
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6.5
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Note 3 & Do period end
process if needed at this time.
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28
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- - -
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Backup to diskettes and place
in permanent storage.
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29
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3.1.6
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Print and purge invoice
posting journals (Note 1).
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30
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3.2.4
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Print and purge adjustment
posting journals (Note 1).
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31
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4.1.5
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Print and purge manual cheque
register (Note 1).
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32
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4.3.3
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Print and purge system cheque
register (Note 1).
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33
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4.5.4
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Print and purge reconciled
cheques posting journal (Note 1).
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34
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6.1.2
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Print and purge period end
posting journal (Note 1).
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35
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4.4
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Print and purge check number
audit list (Note 1).
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36
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5.1.2
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Optionally print vendors transactions
(Note 1).
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37
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5.1.6
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Optionally print vendors list
and statistics (Note 1).
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38
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5.1.7
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Optionally print and purge
tax tracking report (Note 1).
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39
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6.2
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Do year-end process (Note 7).
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40
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1.2
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Optionally delete inactive
vendors
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41
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- - -
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Do a regular backup and check
data integrity (F3)
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42
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- - -
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AP is now ready for the New
Year.
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GENERAL LEDGER 6.5
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21
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- - -
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Complete normal month end
procedures.
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22
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3.1.2
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Ensure all sub ledger batches
have been retrieved.
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23
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3.1.4
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Optionally archive all batches
under their own number.
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24
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3.3.1
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Post all batches.
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25
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3.4
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Print posting journal and
file as usual.
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26
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4.1
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Optionally Print the
Financial Statements for your accountant.
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27
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5.2
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Optionally Print a trial
balance for your accountant.
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28
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5.3
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Optionally print GL listing
for your accountant.
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29
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- - -
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Backup onto diskettes and
place in permanent storage.
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30
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6.8.1
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Consolidate posted
transactions.
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31
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6.8.2
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Note 4 - Close year.
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32
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3.4
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Print and purge posting
journals (Note 1).
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33
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5.5
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Print and purge batch status
report (Note 1).
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34
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6.8.3
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Change fiscal year.
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35
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6.1
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Edit Company profile, Fiscal
Period calendar to change year in report dates.
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36
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(Note 3 & 7) Do Period
End in AP and AR if needed.
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37
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Do a regular backup and check
data integrity (F3).
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38
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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).
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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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