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General Ledger Checklists

General Ledger FAQs

Close Fiscal Year

Access this form using Activities>Close Fiscal Year. This requires exclusive access to the organization and system databases.

Use this form to close the specified fiscal year. When you close the fiscal year, the system uses the ending balances for the year being closed to create opening balances for the new year. The closed year is not removed from the system, and you can still print reports on the closed year.

Closing account assignments must be set up using Maintain>Closing Account Assignments.

Depreciate and Transfer Depreciation for all depreciable assets through the end of the year being closed.

When you close a fiscal year, you will not be able to depreciate assets (Activities>Fixed Assets>Calculate Depreciation) that have a Last Depreciation Date within that fiscal year. Furthermore, if the asset has a Status of Discontinue/Disposed, it cannot be changed after the year is closed.

Process Revaluations for the year being closed.

Before closing the fiscal year, make a backup of the database.

The year-end close process does the following:

  • Checks for exclusive system access
  • Checks for posted revaluation gain/loss entries
  • Checks for untransferred depreciable assets
  • Checks for unposted transaction sessions excluding budget sessions
  • Checks for a valid closing account assignment for each Interfund Transfers—IFT, Revenues—REV, and Expenses/Expenditure—EXP account types
  • Creates and posts an opening balance entry for each account for the year being closed into
  • Updates the fiscal year-end date shown on the Organization>Organization Information form
  • Immediately posts entries created by the close year process, regardless of the processing mode set up by the Administrator on the Organization>Organization Preferences>Processing tab

    • If you own the MIP Advance system and get the message that you do not have exclusive access, be sure to review the System>Manage Concurrent Users and System>Manage Services forms; sending emails to the users accessing the system and explaining the need for exclusive access, remind them to save their changes and log out of the system quickly. Afterwards, if you still need to establish exclusive system access, open System>Manage Services. Click the Set Maintenance Mode button and set the organization and system databases offline. This will set the system into maintenance mode and prevent others from logging on to the system but it will also kick the logged on user's out of their databases; thus losing any unsaved work. Once the Close Fiscal Year is complete, you will need to clear these check boxes on the Set Maintenance Mode form and place the organization and system databases back online.

 

Fiscal Year to Close: The system displays the fiscal year-end date that was designated by the Administrator when this organization was created (File>New Organization). Once you click OK, the fiscal year is closed.

  • Prohibit and Warn dates do not apply to this form. These dates were set up by the Administrator using the Organization>Organization Preferences>Entry Dates tab.
  • When changing an asset’s status, it is important to keep track of the Last Depreciation Date, especially if you intend to continue depreciating the asset in the future. Assets with the status Discontinued/Disposed or Inactive cannot be changed to Active if the Last Depreciated Date is in a closed year and has depreciable life left on the asset (months depreciated are less than life months). To depreciate an asset with a Last Depreciation Date in a closed year, first dispose of the old asset and than create a new asset with an adjusted value. The Last Depreciation Date needs to be within an open year so the system can continue to depreciate the asset.