FUND GL Year-End Closing

Year-end processing entails printing reports and providing an adequate audit trail to support your organization’s revenue and expenditures for the year. While you must have records from all of the modules, as well as from other areas of your organization, year end processing focuses primarily on General Ledger.

Preparing for Year End in General Ledger

Prior to closing the year in General Ledger, which will post closing entries and roll your Fiscal Calendar forward, you need to carry out year-end procedures in the other modules to ready them for the end of the year.

 

WARNING: Purging History in any module destroys all detail information through the date you specify. Do not select this command until you have posted current transactions, printed all reports for the time period you intend to purge and backed up your data files.

It may be beneficial to Purge History if you have recorded enough transactions to use excessive hard drive space or create time delays while you are accessing history files (by running history reports, for example) in the software.

General Ledger

In General Ledger, the computer maintains period balances by reading the transaction dates of the journal entries. Therefore, you do not have to close each period in General Ledger. The only period-end processing you must do in General Ledger is done at the end of the year.

WARNING: Before proceeding with any of the following procedures, make sure that you have entered balances for all the periods in your fiscal year. If you converted to FUND after the start of the fiscal year, you may have periods for which there are no balances.All adjusting entries for the year must be entered and posted before closing the year.

Do the following to prepare for year end processing in General Ledger:

  1. Print a Trial Balance report for each period of the fiscal year. Check it carefully to verify that each period is in balance, and that the account balances are correct.
  2.  Write down any necessary adjustments, noting the account to be adjusted, the amount, whether to debit or credit the account, and the reason for the entry.
  3. After you have identified any errors, enter and post the adjusting entries.
  4. Reprint the Trial Balance report for the entire year and check it again.
  5. After making all adjusting entries in General Ledger, you are ready to print reports. Reports must be printed before you close the year, because the report information will be lost after closing.
  6. Print a complete Audit Trail for all accounts for the entire year. Store this report in a safe place to verify the legitimacy of your financial statements.
  7. Print your financial statements, including the Balance Sheet and a Revenue and Expense report.
  8. Check the reports very carefully for accuracy. If the reports must be approved by someone else, get all necessary approvals before proceeding with Year End processing.
  9. Make a permanent backup of your data files.
  10. If you are running your year end on a date different from the last date of the fiscal year, set the system date to the last day of the fiscal year by selecting Change Local Transaction Date from the Journal menu, and setting the Present Period to Period 12 (or 13 if you are using a 13 period fiscal calendar) in the Fiscal Calendar.

Closing the Fund Year

Each fund must be closed separately at year-end, even if all funds run off the organization

calendar. You cannot close the organization year until all funds have been processed.

Year-end processing for funds accomplishes the following tasks.

  • Creates a balance forward for each General Ledger account.
  • Closes revenue and expense accounts to the fund balance account.
  • Restores encumbrances to the first period, if encumbrances exist.
  •  Resets the starting date in the Set Up Fund window.

Run this option after all entries and adjustments to the General Ledger are completed and year end processing is completed in all other modules.

To close the fund year:

  1. Select Close Fund Year from the Year End menu.
  2. Enter the Fund Number to close.
  3. Select OK to begin processing, or Cancel to exit without processing.

Closing the Organization Year

Processing year end for the organization is similar to processing for the funds. You cannot process year end for the organization, however, until all funds have been closed at least once.

Year-end processing for the organization accomplishes the following tasks:

  • Resets the starting date for the funds.
  • Resets the fiscal year starting date for the organizational calendar.

To close the organization year:

  1. Select Close Organization from the Year End menu.
  2. Select OK to begin processing, or Cancel to exit without processing.

Purging History

Purging History removes the detail of the General Ledger Audit Trail, leaving only period balances for each account. You select the fiscal periods to purge. Print an Audit Trail before running this feature so that you have a record of the journal entries before they are deleted.


Note: This process is not required during closing but is an option that can gain disk space and/or speed.

To purge the history files, do the following:

  1. Select Purge History from the Year End menu.
  2. Enter the cutoff date up to which you will purge journal entry history. Type the date without dashes or slashes. History is purged up to (but not including) the date specified.
  3. Activate the Purge Period Totals check box to purge the totals for each period. Leave the check box unchecked to purge only the detail and not the period totals.
  4. Select OK to purge, or Cancel to exit without processing.

 

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