Creating a New Year

At the end of a fiscal year, you use the Create New Year screen to create and post a batch of transactions to close income and expense accounts and enter the opening account balances for the new fiscal year.

Note: The Create New Year screen does not check account permissions.

If you use single-segment account numbers, all accounts are closed to the default closing account specified on the G/L Options screen. If you use multi-segment account numbers, you provide information on three separate screens to specify the retained earnings account to which an account is closed. More...

  • G/L Options screen. On the Segments tab, specify that the segment is used in closing.
  • G/L Segment Codes screen. Specify the retained earnings accounts to which different segment codes (for example, different departments) close.

    Note: You can have as many retained earnings accounts as you have account segment codes.

  • G/L Accounts screen. Specify for each account the segment you want to use for closing.

    Note: If you do not choose an account segment for closing, General Ledger uses the default closing account defined on the G/L Options screen.

  • If creating the new year would result in too many years of data, you must first clear some of the earliest years of history using the Clear History screen. (Transaction history is not cleared when you create a new year.)
  • Make sure you have entered the correct default closing account on the G/L Options screen.
  • If you close by segments, specify the retained earnings accounts for each segment code on the Segment Codes screen.
  • Back up your data.

You might also want to:

  • Enter and post all outstanding transactions for the year that is ending. If you import batches, import and post the batches you need for the year.
  • Print and clear all outstanding posting journals.
  • Print financial statements
  • Print any other reports and listings you need for your audit trail and other records.
  • If desired, consolidate posted transactions.
  • If you use multicurrency accounting, update exchange rates and revalue account balances, if needed.
  • Back up your data.

To create a new year:

  1. Open Common Services > Fiscal Calendar, and then:
    1. Create a fiscal calendar for the next year.
    2. Ensure that the closing period for the current year is not locked.
  2. Open General Ledger > G/L Periodic Processing >  Create New Year.

  3. Click Proceed.

    Each transaction detail is assigned the source code GL-CL, and is posted to the closing period.

  • Print the Posting Journal.

    The journal lists all closing transactions, showing the retained earnings account to which each closing balance was transferred. For accounts closed by segment, the journal also lists the segment name with each detail.

  • Define and print a source journal that lists only the entries associated with the closing source code, GL-CL.
  • Print and clear the Batch Status report, selecting all statuses.
  • Print the opening balance sheet and other reports you need to start your records for the new fiscal year.
  • Use the Period End Maintenance screen to:
    • Delete inactive accounts.
    • Delete outdated transaction detail.
    • Delete outdated fiscal sets.
    • Reset batch numbers to 1.

Note: Period End Maintenance activities are optional, and can be done at any time.