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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. FIRST ITEM 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. SECOND ITEM 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. THIRD ITEM 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. |
I.O.S. Consulting Group Inc., 7774 Wansford Drive, Delta, BC, V4C 7S9 (604) 878-0467