Closing the Year

What Does Closing the Year Do?

The year-end close process does the following:

  • Checks for a valid closing account assignment for each revenue and expense type account.
  • Immediately posts entries that are created by the year-end process (online posting), regardless of the processing mode set up with Administrative user rights, on the Organization>Organization Preferences>Processing tab.
  • Posts an opening balance entry for each account for the year being closed into.
  • Updates the fiscal year-end on the Organization>Organization Information>Organization with Administrative user rights; and the year-end information in Activities>Close Fiscal Year.

Note: The close year process excludes Assets with the Status of D (Discontinued/Disposed).

You must have previously set up your closing account assignments.

How do I prepare to close the fiscal year?

Make sure that all closing assignments have been made. (These were set up using Maintain>Closing Account Assignments). You can verify that all closing account assignments are present by reviewing Reports>Lists>Closing Account Assignments.

You may also want to set the acceptable date ranges for each transaction type with Administrative user rights, using the Organization>Organization Preferences>Entry Dates tab. Setting the entry preferences can prevent accidental postings into the wrong fiscal year.

Am I required to close before starting the new fiscal year?

No. You may continue to enter transactions to any fiscal year. The system uses the effective date to determine when transactions are posted to your general ledger. You are also not restricted to running reports only within the organization's current fiscal year. You may produce reports for any range of dates.

What happens to my accounting data?

Your accounting data is retained. Closing a fiscal year creates new fiscal year or system opening (SO) entries and does not remove any data or transactions. As long as the effective date is in the correct fiscal year, you can continue entering transactions.

I forgot a transaction for the closed fiscal year. Can I still enter it?

Yes. If your prior year entry is going to affect the beginning balances for the open fiscal year, use the Adjust Current Year button on the transaction entry form. The system will automatically create the Adjust Opening (AO) entries needed to correct the system opening balances.