Complete the posting procedures and the closing procedures for other modules.

Transcription

1 This dcument utlines the recmmended year-end clsing prcedures fr Great Plains. This sectin cntains a summary list f the steps in the prcedure. The "Mre Infrmatin" sectin cntains detailed infrmatin fr each step. The prcedure is fllwed by a series f frequently-asked questins. The year-end clsing prcedure includes the fllwing steps: 1. Cmplete the psting prcedures and the clsing prcedures fr ther mdules. Nte This step is nly required if the General Ledger mdule is integrated with ther mdules. 2. Pst the final adjusting entries in the General Ledger mdule. 3. Print an accunt list t verify the psting type f each accunt. 4. Clse the last perid f the fiscal year. Nte This step is ptinal. 5. Perfrm file maintenance n the Financial series grup f mdules. 6. Verify the settings in the General Ledger Setup windw. 7. Make a backup. 8. Print a final Detailed Trial Balance. 9. Print year-end financial statements.

2 10. Set up a new fiscal year. 11. Clse the fiscal year. 12. Clse all fiscal perids fr all series. Nte This step is ptinal. 13. Adjust budget figures fr the new year and print financial statements. 14. Make a backup. INTRODUCTION Read this dcument befre yu perfrm any steps. If yu have any questins, cntact Micrsft Business Slutins Technical Supprt. During the year-end clsing rutine, all the recrds that will be mved are put in a temprary table befre they are mved t the GL30000 table. Yu must have free disk space that is equal t the size f the GL20000 table t perfrm the rutine. An Autmated Slutin script may be available t perfrm this task. Fr mre infrmatin abut the year-end clse Autmated Slutin, visit the fllwing Micrsft Business Slutins Web site: MORE INFORMATION 1. Cmplete the psting prcedures and the clsing prcedures fr ther mdules. Only perfrm this step if the General Ledger mdule is integrated with ther mdules. If the General Ledger mdule is nt integrated with ther mdules, skip this step. 1. Pst final transactins in all the mdules except the General Ledger mdule. 2. Cmplete the mnth-end prcedure and the quarter-end prcedure fr all the mdules except the General Ledger mdule. 3. Cmplete the year-end clsing prcedures fr each mdule in the fllwing rder: 1. Inventry

3 Fr additinal infrmatin, click the fllwing article number t view the article in the Micrsft Knwledge Base: Inventry year end clsing prcedures Receivables Management Fr additinal infrmatin, click the fllwing article number t view the article in the Micrsft Knwledge Base: Tips fr perfrming the Receivables Management year end clse in release 7.x and Payables Management Fr additinal infrmatin, click the fllwing article number t view the article in the Micrsft Knwledge Base: Payables Management year end clsing prcedures 4. Fixed Asset Management Fr additinal infrmatin, click the fllwing article number t view the article in the Micrsft Knwledge Base: What are the recmmended Fixed Assets year end prcedures 2. Nte Year-end prcedures fr the Payrll mdule are independent f the prcedures in ther mdules. These prcedures are always perfrmed at the end f the calendar year. Fr additinal infrmatin, click the fllwing article number t view the article in the Micrsft Knwledge Base: Payrll year-end clsing checklist fr back t the tp 5. Pst the final adjusting entries in the General Ledger mdule. Adjusting entries include all entries that crrect errrs that were made when transactins were recrded. Adjusting entries als include jurnal entries that are used t assign revenues r expenses t the perid that the revenues were earned in r that the expenses were incurred in. If yu must make any adjusting entries t allcate revenue, expenses, r depreciatin t the year that yu are clsing, use the Transactin Entry windw r the Quick Jurnal Entry windw t make adjusting entries in the General Ledger mdule. The Secnd Clsing Perid feature in the General Ledger mdule lets yu have a secnd clsing perid that has the same start date as the last day f the first clsing perid. This feature lets yu add initial adjusting entries in the first clsing perid and pst-

4 audit entries in the secnd clsing perid. This enables separate tracking f the adjusting entries that are made after the year is clsed. Fr additinal infrmatin abut secnd clsing perids, click the fllwing article number t view the article in the Micrsft Knwledge Base: Secnd clsing perid Nte If yu are using clsing perids and yu recncile, yur transactins all mve t the first perid with the start date. back t the tp 6. Print an accunt list t verify the psting type f each accunt. The psting type determines whether an accunt is clsed t the retained earnings accunt r whether an accunt brings a balance frward t the next fiscal year. If the accunt balance is ging t be brught frward at the end f the year, the psting type must be set t Balance Sheet. If the accunt balance is ging t be clsed t a retained earnings accunt at the end f the year, the psting type must be set t Prfit and Lss. Use the Accunt Maintenance windw if yu must change the psting type fr an accunt. Fllw these steps t print an accunt list: 1. Click Reprts, click Financial, and then click Accunts. 2. Select All Accunts in the Reprts list, and then click New. 3. Type all accunts in the Optin field. 4. If yu are using Great Plains 8.0 r a later versin, click t select the Inactive Accunts check bx. Nte In Great Plains 8.0, yu can deactivate accunts that have a balance. These accunts are still prcessed during the year-end clsing rutine accrding t their psting type. 5. Click Destinatin t specify a reprt destinatin, and then click OK. 6. Click Print. back t the tp 7. Clse the last perid f the fiscal year. This step is ptinal. Yu can use the Fiscal Perids Setup windw t clse any fiscal perids that are still pen fr the year. This prevents transactins frm being psted t the wrng perid r year. Ntes Make sure that yu pst all the transactins fr the perid and the year fr all mdules befre yu clse the fiscal perids. Later, if yu have t pst

5 transactins t a fiscal perid that yu already clsed, yu must return t the Fiscal Perids Setup windw t repen the perid. If yu use FRx Reprter, keep ne perid in the mst recent histrical year pen t prevent the fllwing errr message: FRX Print Engine Failed t Lad the Cmpany Calendar. Fr additinal infrmatin, click the fllwing article number t view the article in the Micrsft Knwledge Base: "Failed t lad cmpany calendar" checklist fr FRx 8. back t the tp 9. Perfrm file maintenance n the Financial series grup f mdules. Perfrm the shrink prcedure, the rebuild prcedure, and then run the check links prgram n the Financial series grup f mdules. Nte If yur Great Plains installatin uses Micrsft SQL Server, yu nly have t run the check links prgram. back t the tp 10. Verify the settings in the General Ledger Setup windw. If yu want t keep histrical recrds, yu must click t select the Accunts check bx and the Transactins check bx in the Maintain Histry area f the General Ledger Setup windw. The accunt histry lets yu print financial statements and calculated budgets frm histrical infrmatin. The transactin histry lets yu print detailed histrical trial balances and lets yu view transactin detail. Bth the accunt histry and the transactin histry are updated during the year-end clsing rutine if these check bxes are selected. back t the tp 11. Make a backup. Make a backup f all cmpany data, and put the data in safe permanent strage. The backup gives yu a permanent recrd f the cmpany's financial psitin at the end f the year. The backup can then be restred later if it is required. back t the tp 12. Print a final Detailed Trial Balance. Use the Trial Balance Reprt windw t print a year-end Detailed Trial Balance. Nte We recmmend that yu pst all transactins fr the perid and the year fr all mdules befre yu print the Detailed Trial Balance. If yu pst additinal transactins later, we recmmend that yu print a new Detailed Trial Balance.

6 back t the tp 13. Print year-end financial statements. Print any year-end financial statements that are required. The mst cmmn financial statements include the fllwing: Balance Sheet Prfit and Lss Statement Statement f Cash Flws Statement f Retained Earnings back t the tp 14. Set up a new fiscal year. Befre yu can perfrm the year-end clsing rutine, yu must set up a new fiscal year by using the Fiscal Perids Setup windw. back t the tp 15. Clse the fiscal year. T clse the fiscal year, fllw these steps: 0. Click Tls, click Rutines, click Financial, and then click Year-End Clsing. 1. Specify an accunt in the Retained Earnings Accunt field. The accunt that yu specify in the Retained Earnings Accunt field is the accunt that the year's prfit r lss is clsed t. The default accunt is the accunt that yu specified in the General Ledger Setup windw. All current-year earnings r lsses are transferred t the accunt that yu specify here. If yu want t distribute the retained earnings fr the year t mre than ne accunt, yu can specify an allcatin accunt t distribute the retained earnings amunt t the apprpriate accunts. Fr example, yu culd set up an allcatin accunt t divide the earnings between several departments in yur business. Or, yu culd transfer the year's prfit r lss t accunts that cntain a specific accunt segment. This is referred t as clsing t a divisinal retained earnings accunt. Fr additinal infrmatin, click the fllwing article number t view the article in the Micrsft Knwledge Base: Hw t use divisinal retained earnings accunts in General Ledger See the "Frequently-asked questins" sectin fr additinal infrmatin abut hw t clse t divisinal retained earnings accunts.

7 2. Specify the number that yu want t use as the first jurnal entry number fr the next fiscal year in the Starting Jurnal Entry field. Yu can accept the default number. The default number is ne mre than the highest jurnal entry number that is psted fr the current year. Or, yu can specify a new number. The jurnal entry number that yu specify is used as the jurnal entry number fr the Year-End Clsing Reprt. 3. Click Clse Year t start the rutine. Imprtant Click Clse Year ne time. If yu click mre than ne time, yu will clse mre than ne year during the prcess. Als, if the prgress windw appears t stp at 50 percent, d nt restart the rutine. As lng as the hard disk is prcessing, let the prcess cntinue. If yu are maintaining accunt histry, the year-end clsing rutine transfers all current-year infrmatin fr each accunt in the chart f accunts t accunt histry. If yu are maintaining transactin histry, the year-end clsing rutine als transfers all current-year infrmatin fr each accunt in the chart f accunts t transactin histry. The prcess then prepares the accunting system fr a new fiscal year. Besides transferring current-year figures t transactin histry and t accunt histry, the yearend clsing rutine des the fllwing: The year-end clsing rutine recnciles and summarizes the general ledger balances that accumulated thrughut the year. The year-end clsing rutine remves accunts that are marked as inactive if the accunts match the criteria fr deleting a psting accunt. The year-end clsing rutine mves all prfit and lss accunt balances t the retained earnings accunt. The year-end clsing rutine summarizes balance sheet accunts and brings the balances frward as the beginning balances f the accunt in the new fiscal year. The year-end clsing rutine prints the Year-End Clsing Reprt. When the year-end clsing rutine is cmplete, the Year-End Clsing Reprt is printed. This reprt lists the accunts that were clsed and the transactins that were created t clse thse accunts. The Year-End Clsing Reprt is part f the audit trail. Save this reprt fr yur cmpany's permanent recrds. The Year-End Clsing Reprt cannt be reprinted. Nte After yu clse the year, we recmmend that yu perfrm the shrink prcedure n yur financial data files t free disk space. D nt perfrm the shrink prcedure r the rebuild prcedure if yu use Micrsft SQL Server. If yu use Micrsft SQL Server and if database maintenance is nt autmated, we recmmend that yu perfrm database maintenance. Fr additinal infrmatin abut recmmended database maintenance prcedures, click the fllwing article number t view the article in the Micrsft Knwledge Base: Recmmended SQL database maintenance fr Great Plains

8 back t the tp 16. Clse all fiscal perids fr all series. This step is ptinal. After yu cmplete clsing prcedures fr all mdules, use the Fiscal Perids Setup windw t mark all perids fr all series as clsed. We recmmend that yu d this t prevent transactins frm being psted frm any mdule t any perid that yu clsed. After a perid is marked as clsed, transactins cannt be psted t the perid unless yu repen the perid. Later, if yu must pst a transactin t a clsed perid, return t the Fiscal Perids Setup windw t repen the perid. back t the tp 17. Adjust budget figures fr the new year and print financial statements. Adjust budget figures by using ne f the fllwing windws: Excel-Based Budgeting Budget Maintenance Single-Accunt Budget Maintenance Print the Prfit and Lss Statement t verify that prfit and lss accunts were clsed t the retained earnings accunt. Print the Balance Sheet t verify that balance sheet accunts indicate that the balances were brught frward. If yu are using Advanced Financial Analysis t print yur financial statements, yu must update the reprt layut t reflect the current fiscal year. T d this, fllw these steps: 3. Click Reprts, click Financial, and then click Advanced Financial. 4. Select the financial statement frm the Reprts list, click Open, and then click Layut. 5. Duble-click the first clumn heading. 6. If the clumn type is set t Perid Range, Year-t-Date, r Variable Year-t-Date, select the current fiscal year in the Year list, and then click OK. 7. Repeat steps a thrugh d fr each clumn f each reprt. back t the tp 18. Make a backup. Make a backup f all cmpany data and put it in safe permanent strage. The backup gives yu a permanent recrd f the cmpany's financial psitin at the beginning f the new year. This backup can be restred later if it is required. back t the tp Frequently-asked questins

9 1. D I have t clse the fiscal year befre the first day f my next fiscal year? The year-end clsing rutine des nt have t be cmpleted befre yu start yur next fiscal year. Hwever, we recmmend that yu clse the year as sn as pssible. Fr additinal infrmatin abut hw t print a Balance Sheet when yu have tw pen years, click the fllwing article number t view the article in the Micrsft Knwledge Base: Printing a Balance Sheet fr 2007 when 2006 is an pen year using FRx 2. Can I make adjusting entries after I clse the year? Yu can pst t the mst recent histrical year if the Psting t Histry check bx is selected in the General Ledger Setup windw. If yu pst an entry t a clsed year, a secnd entry is autmatically made that updates the beginning balances fr the current fiscal year. The fllwing tables shw an adjusting entry and the way the entry appears in the psting jurnal. Adjusting entry 12/25/2007 Administratin Expenses $500 Cash $ Psting jurnal 12/25/2007 Administratin Expenses $500 Cash $500 12/31/2007 Retained Earnings $500 Cash $ After I perfrmed the year-end clsing rutine, beginning balances were brught frward fr sme f my sales and expense accunts. Sme f my asset accunts als clsed t the retained earnings accunt. Why did this prblem ccur, and what can I d t crrect it? The psting type that is specified in the Accunt Maintenance windw fr the accunt determines whether a balance is brught frward fr the accunt r whether the accunt is clsed t the retained earnings accunt. Accunts that use the Balance Sheet psting type carry a balance frward. Accunts that use a Prfit and Lss psting type clse t the retained earnings accunt. T reslve this prblem, restre frm a backup, crrect the psting type, and then run the year-end clsing rutine again. Fr additinal infrmatin abut hw t crrect accunts that have an incrrect psting type withut restring frm backup, click the fllwing article number t view the article in the Micrsft Knwledge Base: Crrecting accunts set up with the wrng psting type after year-end clse

10 5. I tried t run the year-end clsing rutine by using a divisinal retained earnings accunt, but I received the fllwing errr message: Retained Earnings accunt nt fund. What can I d t reslve the prblem that prvkes this errr message? The year-end clsing rutine must validate the existence f all the divisinal retained earnings accunts that are required befre the rutine can cntinue. Fr example, Fabrikam, Inc., the Great Plains demnstratin cmpany, uses an accunt frmat f nnn-nnnn-nn. The first segment represents the department. A retained earnings accunt must exist fr each department that has a prfit and lss accunt. Fr example, if sales accunt exists, but n 400-nnnn-nn retained earnings accunt exists, yu receive this errr message. Fr additinal infrmatin abut hw t clse t divisinal retained earnings accunts, click the fllwing article numbers t view the articles in the Micrsft Knwledge Base: Hw t use divisinal retained earnings accunts in General Ledger "Retained earnings accunt nt fund" errr message in General Ledger yearend clsing prcess An Autmated Slutin script may be available t perfrm this task. Fr mre infrmatin abut errr messages that are related t retained earnings accunts that cannt be fund, visit the fllwing Micrsft Business Slutins Web site: 6. What happens t unit accunts during the year-end clsing rutine? Unit accunts are treated as balance sheet accunts. Unit accunts have a balance that is brught frward when the year is clsed. Fr additinal infrmatin abut hw t clear the beginning balances fr unit accunts, click the fllwing article number t view the article in the Micrsft Knwledge Base: Query t clear beginning balances fr unit accunts 7. I am getting ready t clse my year in the General Ledger mdule. Must everyne quit Great Plains Dynamics befre I perfrm the year-end rutine? We recmmend that client cmputer users stp wrk in Great Plains while the year-end clsing rutine is prcessing. If users cntinue t wrk in Great Plains, transactins may have t be entered again if prblems ccur during the year-end clsing rutine. 8. I want t allcate my net prfit t my retained earnings accunt r t my capital accunts n a mnthly basis. Als, net prfit is suppsed t be allcated t three different retained earnings accunts r capital accunts. Can I d this? N, yu cannt d this. Hwever, yu can specify a nn-financial accunt in the Accunt

11 Maintenance windw. Use a number that is nt in yur current accunt numbering scheme. This accunt acts as a suspense accunt fr the net incme r the net lss. Every mnth, yu can pst an adjusting entry t the three capital accunts that yu want t adjust. Fr the ffset accunt, use the suspense accunt. When the year-end clsing rutine is finished, use the suspense accunt as the retained earnings accunt. This ffsets all the manual adjustments that yu made t the suspense accunt during the year. Make sure that the suspense accunt des nt appear n reprts. If yu are using Advanced Financial Analysis fr financial statements, when yu frmat the Balance Sheet, put the NP line as the last line n the Advanced Financial Analysis statement. Then, put a page break befre the NP line. The Balance Sheet must have an NP line, but this line makes the net incme r the net lss appear tw times. Therefre, frmat the NP line s that it is ff the financial statement. Yu can als use a reprt type f Other. 9. Why is the status f sme f my financial reprts set t Invalid? If a reprt is marked t use the acceleratr file, any changes that are made t accunts in ne f the fllwing windws causes the status f financial reprt printing ptins t change t Invalid: Accunt Maintenance Unit Accunt Maintenance Mass Mdify Chart f Accunts Year-End Clsing Befre yu print financial statements, yu must update the acceleratr file. T d this, fllw these steps: 5. Click Reprts, click Financial, and then click Update Financial Acceleratr. 6. Click Update, and then click Cntinue. 7. Clse the Update Financial Acceleratr Infrmatin windw. 10. Hw are nn-financial accunts clsed during the year-end clsing rutine? If the nn-financial accunt is cnfigured t use the Balance Sheet psting type, the accunt balance is brught frward during the year-end clsing rutine. If the nnfinancial accunt is cnfigured t use the Prfit and Lss psting type, the accunt balance is clsed t the retained earnings accunt during the year-end clsing rutine. 11. When I try t pst a batch in the General Ledger mdule, I receive the fllwing message: Batches cannt be psted while the Year-End Clse is in prgress. The year-end clsing rutine is nt being run in the General Ledger mdule. What shuld I d? T reslve this issue, have all users clse any transactin entry windws. Then, make the fllwing changes: If yu are using a Pervasive Sftware Pervasive.SQL database, rename the SY00800.btr file.

12 If yu are running a FairCm c-tree database, rename the SY00800.dat file and the SY00800.idx file. If yu are running a Micrsft SQL Server database, delete the SY00800 file. T d this, use the fllwing cde: delete SY00800 where BACHNUMB = 'GL_Clse' Fr additinal infrmatin, click the fllwing article number t view the article in the Micrsft Knwledge Base: General Ledger year end clse still in prcess and batches cannt be psted 12. I receive the fllwing message when I try t clse the year in the General Ledger mdule: Srry, anther user is clsing the year. N ne else is trying t clse the year. What shuld I d? T reslve this issue, make the fllwing changes: If yu are using a Pervasive.SQL database, rename the GL50100.btr file. If yu are using a c-tree database, rename the GL50100.dat file and the GL50100.idx file. If yu are using a Micrsft SQL Server database, delete the SY00800 file. T d this, use the fllwing cde: delete SY00800 where BACHNUMB = 'GL_Clse' If yu must pst the batches befre yu clse the year, click Cancel. If yu d nt have t pst the batches befre yu clse the year, click Cntinue. 13. I am perfrming the year-end clsing rutine in the General Ledger mdule and it appears t be stpped at 50 percent. My wrkstatin seems like it has stpped respnding. What shuld I d? If yur year-t-date transactin pen file (GL20000) is large, it may take a lng time fr the year-end clsing rutine t finish. If yur hard disk is still prcessing, the yearend clsing rutine has nt stpped respnding. We recmmend that yu leave the rutine t run. If yur hard disk is nt prcessing, we recmmend that yu restre frm a backup. Then, fllw the steps in this article again, starting at step If an adjusting entry has been psted t a year that is clsed, can I print a crrected Trial Balance Reprt fr that year? Yes, yu can print a crrected Trial Balance Reprt fr the year that is clsed. T d this, fllw these steps: 0. Click Reprts, click Financial, click Trial Balance, and then click New. 1. In the Optin field, type With Adjustments. 2. In the Include area, click t select the Psting Accunts check bx. 3. Click t select the Histry check bx in the Year area, and then select the histrical year frm the Year list. 4. Click Destinatin t specify a reprt destinatin, and then click OK.

13 5. Click Print. 15. Hw des Great Plains determine the financial statement that is printed fr the accunt that I am adding? The categry determines the type f financial statement that is printed when yu use quick financial statements fr the accunt that yu are adding. The categry is either the Balance Sheet categry r the Prfit and Lss categry. Yu must frmat the reprts t print the accunts that yu want in Advanced Financial Analysis and in FRx Reprter. The psting type is used during the year-end clsing rutine t determine the accunts that clse t the retained earnings accunt and t determine the accunt that carries a balance frward. The psting type des nt affect the financial statements. back t the tp The third-party prducts that this article discusses are manufactured by cmpanies that are independent f Micrsft. Micrsft makes n warranty, implied r therwise, regarding the perfrmance r reliability f these prducts. The infrmatin in this article applies t: Great Plains 8.0 General Ledger Great Plains 7.0 General Ledger