One moment please...
 
 
Exact Globe+   
 

Year-end procedures Finance

Introduction

The only thing required in order to be able to enter entries in the new financial year is to generate a new financial year. Also, you have the opportunity to process the profit/loss and to close journals for the previous year(s). This document describes how to close the previous year and how to open the New year.

Explanation

1. Receivables history

It is not necessary to print the receivables history at the end of the financial year. You can print the receivables history at any given moment by entering a reference date 31-12-**** via menu path: [Finance / Accounts receivable / Receivables / Receivables] or [Finance / Accounts payable / Payables / Payables]. If you select the option “List" a summary report will be generated, which gives you a clear overview of your accounts receivable position.

2. Generate a new financial year

You can generate a new financial year via menu path: [System / General / Settings / General settings / Period Date Table]. If the financial year does not yet exist, you can create a new one by clicking the 'new' button. In a new window the new financial year will be shown by default. At the bottom of the screen you will find the button "Generate". This option makes it very easy to generate a new financial year. It is also possible to generate more financial years at once or to close all periods at once. If more financial years are opened, this step may be skipped for future year-ends. In case all periods are closed note that a period bust be (re-)opened before one is able to create entries in that period. Via menu path [System / General / Settings/ General Settings / Period date table] allows you to close and re-open all periods for a whole financial year at once.

3. Define default financial year

When you start making entries in the new financial year you most likely want the default year to come up with the new financial year. You can adjust the default financial year in the maintenance of the period-date calendar in menu path [System / General / Settings / General Settings], via the option 'Settings'.

4. Process profit / loss.

The opening balance for the new year is always set to zero for all P&L ledgers. The opening balance for the B/S ledgers is the same as the balance at the end of the previous year. Thus, the balance of the B/S ledgers is not set to zero. Therefore the B/S ledgers and the P&L ledgers are not in balance. The processing of profit/loss will solve this. You can process the profit/loss as many times as you would like via menu path [System / Finance / Process profit/loss]. Every time the profit/loss will be processed for the processed entries that were not included in the last time you processed the profit/loss. So if you enter and/or process entries on P&L ledgers in the previous year after you have processed the profit / loss, you will need to process the profit / loss again.

The transaction that is generated by the system, will not show on the Profit & Loss ledger in the year the profit / loss is processed, the totals will still be there. After the entries are processed you will see a zero balance on the opening balance of the next financial year. For more information, see Process profit / loss.

5. Close periods per journal

In order to prevent input errors, you may decide to close the periods for the previous financial year. If you close the periods, it is still possible to make entries in these periods (you will get a warning message) but it is no longer possible to process the entries (only if you open the periods again). You can close periods in the maintenance of the period-date calendar in menu path [System / General / Settings / General settings, Period date table]. In the columns ‘Closed’ and ‘Open’ you see how many journals are closed/open for these periods. If you click one of these values, a new screen will pop up which allows you to close/open journals for that period.

6. Change entry numbers

We recommend you to use unique entry numbers for each financial year. Entry numbers can be changed in the maintenance of the journals in menu path: [System / Finance / Journals / tab 'Numbers]. Select the line with the new financial year, click the 'Change' button, delete the old entry number by using the 'backspace' key, enter the new entry number and press the 'save' button.

7. Our reference

The Our reference is the reference that links financial entries to one transaction. The transaction can run over multiple years. For example; an invoice in the old financial year is/will be paid in the new financial year. The payment and the invoice will have the same our reference because it concerns the same transaction. Therefore it is important to use unique our references for each transaction. This way you can separate the transactions from each other and in this way you make the best use of traceability.

You can choose to use the existing range of our reference numbers or create a new one. A new range for your journals (all except the sales journals) can be created via menu path [System / General / Settings / Numbers settings / section Financial]. In the sales journals the next available entry number or invoice number is used as our reference (for more information on this topic, please refer to the Year-end Procedures - Invoice).

 

Related documents

     
 Main Category: Attachments & notes  Document Type: Support - On-line help
 Category:  Security  level: All - 0
 Sub category:  Document ID: 06.309.291
 Assortment:  Date: 04-10-2022
 Release:  Attachment:
 Disclaimer