Year End

Year end notes

1. Before anything can be done in the next year, that year’s chart of accounts must be created (General Ledger à G/L Chart of Accounts). This will copy all G/L accounts from the current year to the new year, except for any accounts that are deactivated in the current year.
   
   This routine may be run multiple times. Subsequent runs will add any additional accounts that were added in the old year after the initial run; also, if the check box Update Existing Accounts is selected, changes made to accounts in the old year after the new year was created will be applied to the new year accounts as well.
   
   
2. In order to be able to create any financial transactions in the new year, a user must be logged into that year.  This may be done in one of two ways:
   • The ability to log into a year other than the ‘current’ year (as defined in the accounting settings) may be granted to users individually or by role; when enabled, at login time the user will have the ability to select the year that they wish to sign in to.
     
     
   • Change the Fiscal Year/Period in the Accounting Settings so that the new year will appear by default.  (If this is done prior to the actual date of the new fiscal year, ensure that Auto Advance Fiscal Period is not checked.) Note: if users are not to be allowed year change access at login time, this is the only way for certain functions (e.g. requisitioning, PO creation from requisition, cash receipt) to be entered in the new year due to auto-batching.
     
     
3. Year End:

• Preliminary
  - the preliminary year end will calculate the total balance of all revenue/expense accounts, posting them to the Surplus/Deficit account as specified in the year end settings.  This amount will overwrite any balance already in the account; therefore, once year end is fully complete, this amount should be journalized to an accumulated surplus/deficit so that the account will start out at zero again for the next year’s year end.  For the first year end run of a year, make sure that the balance of this account is zero.
  - Asset/liability accounts will have their balances carried forward.
  - This may be run as often as required.
  • Final: the final year end will perform all the functions of the preliminary year end as described above; additionally, if the year end settings specify that commitments and/or precommitments (purchase orders and/or requisitions) are to be carried forward, that also will be done.  
    - Invoicing against old year purchase orders in the new year cannot be accomplished until the purchase orders are carried forward; similarly, once carried forward, the purchase order can no longer be invoiced against in the old year.