Year End Procedures
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 may also wish to follow at year end.
To prepare for year-end processing:
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Post outstanding batches for the year you are closing.
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Print and clear all outstanding posting journals.
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If desired, print financial statements and the other reports you require for your records.
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If desired, consolidate posted transactions.
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Make sure you have specified the number of years you want to keep fiscal sets and transaction detail (on the Posting tab of the G/L Options form), and the retained earnings accounts to which you will close income and expense accounts.
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If you use multicurrency accounting, update exchange rates and revalue account balances, if needed.
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Back up data.
To complete year-end processing:
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Use the Create New Year form to:
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Create and post transactions to transfer the balances in the income and expense accounts to retained earnings.
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Enter the opening balances for the General Ledger accounts for the new year.
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Print and clear the Batch Status report and the posting journal created by Create New Year.
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Back up data.
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Use the Period End Maintenance form to delete inactive accounts and 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 form.
See also