Year End Close

Here is some information on year end procedures. All companies have different year end procedures that they follow, depending on how they set up their accounting systems and their accounting procedures overall. Therefore, it is very difficult to provide a standard year end procedure that works for all companies. This is the "general" Integral Accounting Enterprise 2005 Year End Procedure.

The first step in the year-end process, is to backup your current database before you do anything else. This should be standard procedure anyway, but it is worth repeating. 

Then, create a new company to hold last years data. To create a new company. You log onto your current company, and make a new company, for example at the end of the year here we will make a new company called "STFB 20XX" which will be a copy of the current years data and all records. Then, you would perform the year end procedure on the regular company, which will move all of the records to the history tables, populate the Last Year fields, and it will do some year-end journal adjustments.

I would recommend trying this on a trivial company to make sure that you understand it's operation before working on the year end.

Before you do a year-end, you need to close al of the periods. To do a period end, first you would run your trial balance and ensure everything checks out. Then manually enter any adjusting entries as needed. Make sure that all the accounts are closed that are going to be closed and there are no outstanding transactions. This is typically completed by the accountant manually working in the system.

Next, you go to the period end close screen. Make sure that the current financial period is equal to the period you want to close. From there, press the "close period button". The system will close the books for the current period only. If you are closing the current period, there is no need to check the boxes. Keep in mind, that once you close the current period, you cannot go back and close the previous periods. Once the current period is closed and the previous periods remain open, the system is assuming that you are starting the books as of the current period.

If you want to close previous periods before closing the current period (in the event that previous periods were not closed but need to be), then the following process would be followed: Go into the company setup screen, change the current period date to be the period you want to close. Next, you go to the period end close screen. From there, check the box next to the older period you want to close (if you are retroactively closing a period, select the one you just changed in the company setup screen) and press the "close period button". The system will mark the older period as closed and the remaining periods will be open. You then have to go into the company setup screen and change the period to be the next consecutive period and then close that period before progressing to the current period. If you try to close the periods out of order, the system will not work properly.

For example, you can close period 4 (assuming it is the current period) and period 1, but then you MUST go back and close period 2 and 3 before progressing. Another option is you can close period 4 and leave period 1, 2, and 3 open. 

So basically, there are one of two ways to go about it. You can begin the accounting cycle in the middle of a year, leave the previous periods open and have the year go from the current period to the current period. You can start the accounting cycle at the beginning of the year, retroactively close the previous periods up to the current period, and then continue from there.

After closing each period, you can run the financial statements for the current period by going into the Reports - financial statements section and printing out the reports you need. The reports selected from the menu will run the current period reports. The reports can be run by individual period after they are closed. 

Other Questions related to year end: 

How is information about historical periods retained in the system after the end of a fiscal year? Period dates seem to be held against the company record. Is this copied somewhere else when a year is closed?

The historical period information is stored in the system according to periods, by year. You can retrieve the information through the GL Transaction History section under General Ledger.

Could you supply something similar for year end procedures?

Year end procedures are carried out like period end procedures. There are only two differences. First, you would have to create a copy of the company prior to closing out the year. This gives you a snapshot of the company for the previous year and serves as a backup. The second difference is that all the periods have to be closed prior to closing the year. After the periods have been closed, go to the year close screen (under Ledger Setup, Close Year), and click the “year close” button. You will be asked if you created a copy of the company, and to confirm the year close action. Once you confirm both dialog boxes, the year is closed within the system.

Next, you go to the company setup, periods screen and update the fiscal start and end date, as well as the current fiscal year and period close dates to the new year. For example, if you are closing out year 2005, upon closing out the year in the system, you go into Company Setup, Periods, and change the fiscal start date to 12/31/2005 and end date to 12/31/2006. The periods would change to Period 1 close date 1/31/06, Period 2 2/28/06, etc.

This will prepare you for a new fiscal year and fiscal periods.