Year End

At the end of each financial year, you must use the Year End command to perform the following actions:

• Transfer the period totals, both actual and budget, for the closing financial year as prior year period values for historical reporting purposes.

• Clear account balances for profit and loss accounts.

• Transfer or clear account balances for balance sheet accounts depending on your response to a question. If you choose to retain the balances of balance sheet accounts, the application creates an opening balance journal using the next journal number available for the new year. If you use the Advanced Nominal Ledger to include additional dimensions like projects and departments on the transactions that update the Nominal Ledger, these dimensions are not included on opening balance journals. The reason for this is because one journal is posted for each Balance Sheet account for all the transactions posted throughout the year, and these transactions are likely to have had different dimensions analysed to them.

• Remove transactions older than the number of years specified in the Keep Transactions box on the Nominal Ledger - Set Options form.

• Remove journal images older than the number of years specified in the Keep Journal Images box on the Nominal Ledger - Set Options form.

• Update the Nominal Ledger - Set Options form:

1. Update the balance of the profit and loss account nominated in the Profit & Loss box.

2. Move on the new financial year in the Current Year box.

3. Set the Current Period to '1'.

4. Post journals into the new financial year for transactions from other modules(Sales ledger, Purchase Ledger, Cashbook, Stock and Payroll modules) that have not yet been transferred to the Nominal Ledger. If the Year End finds any of these transactions this message is displayed asking you whether you want the transactions posted into the last period of the current year, or the first period of the next financial year.

The Year End has found untransferred transactions dated in this financial year ...Do you want to post the transactions to the first period in the new financial year? Click No to quit the Year End and post the transactions to this financial year using the respective Nominal Ledger Transfer commands.

Important: If you click Yes the transactions are posted into the first period of the new financial year. If you are unsure, quit the Year End then run the respective Transfer command/s on the Nominal - Utilities menu and select the Report Only option. The report/s will include the transactions in question. Then either run the Report and Update option to update the current financial year, or run the Year End command to update the new financial year.

Open Period Accounting

If you use the Open Period Accounting feature, you can set the status for all periods to 'Closed' to prevent any further transactions being posted to the current financial year. Further postings in the current year are blocked for these modules if you tick the Close All Periods for the Year Being Ended box:

• Sales Ledger

• Purchase Ledger

• Stock Control

The following happens after the Year End is run:

• If future financial year's exist in the Financial Calendar, new calendars are created. For example, if in 2010 there are two future financial calendars (for 2011 and 2012), when the year end is run 2011 becomes the current financial year and a new future year is created for 2013.

• On the Financial Calendar form the status for each period in the new financial year is set to 'Open'. This affects the Nominal Ledger, Sales Ledger, Purchase Ledger, and Stock Control modules. You can change the status to 'Blocked' for any module after the Year End process is completed.

• If transactions were advanced posted to the first period in the new financial year, each Nominal Ledger account's Period, Period To Date and Year To Date account balances are updated. Example ...

  ... if in 2010 a posting was made to the first period of 2011, when the Year End is run at the end of 2010, the first period of 2011 becomes current and the balances on each Nominal Ledger account are updated.

• If transactions were advanced posted to a later period in the new financial year, each Nominal Ledger account's Period account balance are updated. The Period To Date and Year To Date account balances are updated when the transaction's period becomes current by the Nominal Ledger Period End command. Example ...

  if in 2010 a posting was made to the second period of 2011, when the Year End is run at the end of 2010, 2011 becomes current and the accounts' Period 2 balances are updated.

  When the Period End is run for period 1, period 2 becomes current and the Year To Date and Period To Date balances are updated.