Introduction
The year-end closing process of profit & loss functionality in Exact Globe only processed the closing for the P&L G/L accounts and not the balance sheet G/L accounts prior to this implementation. In order to fully comply with the Italian financial law, the closing process of the balance sheet G/L accounts was done manually by the bookkeeper. This was considered a tedious and time-consuming activity.
For the new behavior, during the year-end closing of the P&L G/L accounts, all the P&L G/L accounts will be offset with a net resulting balance sheet G/L account. Upon finishing the closing process of the P&L G/L accounts, the system will notify the user to continue with the closing process for the balance sheet G/L accounts. During the year-end closing process of the balance sheet G/L accounts, all the balance sheet G/L accounts will be offset with the opening and closing balance G/L account.
Even though this change is to comply with the Italian legislation, the functionality can be enabled for any legislation by selecting the Process balance sheet check box in the Year-end closing process section in General ledger settings.
Menu path
What has been changed
At System/General/Settings/General ledger settings, a new check box called Process balance sheet under the Year-end closing process section will be implemented to trigger the year-end closing process of balance sheet G/L accounts. The field Closing offset B/S account will be used as the opening and closing balance offset G/L account. The resulting balance sheet G/L account will be moved to this new section as well.
When the user attempts to void any of the year-end closing entries after the year-end closing process for the subsequent period has been executed, an error message will be displayed, and the financial entries cannot be voided.
After successfully creating the closing balance entries for the P&L G/L accounts, a message will be displayed to notify the user to proceed in closing the balance sheet G/L accounts.
In process P&L, an extra filter Balance/PL has been added which displayed as below. This filter is to filter all GLs with type Balance Sheet or P&L.During the year-end closing process, the system will perform closing entries for all the GL types (balance sheet and P&L)
For the interactive balance report, the existing report layout with the current logic will still be available. The new report layout will be constructed with additional columns to differentiate the Opening balance entries and Correction entries, which can be defined by the user in the Define columns screen, as displayed in the following:
If the Opening Balance Only is checked, the Start Balance column will show only transactions with Opening balance transaction type. If the Cumulative Balance is checked, the Start Balance column will show transactions with Opening balance, Closing balance and Normal transaction types before the selected start date
The following is an example of an entry that will be made after running the year-end processing:
In the results screen, double entries for the balance sheet will be displayed. All the balance sheet entries have been allocated into the defined balance sheet account.
When the user zooms in to the defined balance sheet account after processing, all the details about the closing and opening the balance sheet entries will be displayed.
For details of the year-end closing process functionalities, see Year-end Closing Process for Balance Sheet.
Related document
There are no related documents for this release note.