Performing Year End Processing

At the end of a fiscal year, you must close the income and expense accounts for the old year, and open them for the next fiscal year.

To maintain clear and complete accounting records, there are other procedures you should follow at year end.

  • 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.
  • 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 perform year-end processing:

  1. Open General Ledger > G/L Periodic Processing >  Create New Year.
    1. Click Process.
    2. When processing has finished, click Close.

  2. Open General Ledger > G/L Reports >  Batch Status.

    1. Print the Batch Status report for the transactions created by the Create New Year screen.
    2. Click Close.

  3. Open General Ledger > G/L Reports >  Posting Journals.

    1. Print the posting journal created for the transactions created by the Create New Year screen.
    2. Click Close.

  4. Open General Ledger > G/L Periodic Processing >  Period End Maintenance.

    1. Select Delete Inactive Accounts, Delete Transaction Detail History, Delete Fiscal Set History.
    2. Click Process to clear prior-year fiscal sets and transaction details that have been kept for the number of years specified on the Posting tab of the G/L Options screen.
    3. When processing has finished, click Close.
  5. Back up your data.