General Ledger closing does not need to occur on the last day of your business year or the first day of your new business year. Many times the General Ledger Year End procedures are not performed for many weeks following the actual end of your fiscal year. When you are ready to close General Ledger for the year, follow these procedures.
NOTE: You will not have to make closing entries for expense and revenue accounts. Function GYEN does this automatically.
When you are ready to close the year, do the following:
Perform the Monthly Close and Post Adjustments. After you have completed the normal general ledger monthly close, post all year-end adjustments in the General Journal Transactions window.
RGTR-Print a Trial Balance. Print a trial balance for all accounts for the entire year. The Trial Balance Report helps you verify that your debits equal your credits. It also provides a list of all your entries.
RGFS-Print Financial Statements. Print statements for each period if you do not have a current copy. This is your last chance for some statement formats, so be sure you print all the statements you need-month-end as well as year-end!
Check the Accounting Period Maintenance Window (GRMU). Check and recheck the date in GRMU. These dates should reflect only the fiscal or calendar year that you are about to close.
Periods 1 through 12 should each display a month.
Period 13 should be blank.
Period 14, the Current Period, should be the same as period 12.
If GRMU does not look the way it is described above, change it now! It must be corrected as follows:
If you are on 12-period cycle, at Default Period Code, select M.
In the Starting Date field of Period 1, enter the starting date of the first period in the year you are closing, and press Enter. Periods 1-12 change automatically.
Enter the same dates as period 12 in period 14 and press Change.
Note: If you operate your business on something other than 12 monthly periods, please check with the Eagle Advice Line for the appropriate settings prior to running GYEN.
Enter a One-Sided Entry in the General Journal Transactions Window. Enter amount to your "Retained Earnings" account. "Transaction Date" will be the last day of the year you are closing. This will be a one sided entry. If you made a PROFIT then you will credit your retained earning account. If there is a LOSS, then you will debit your retained earnings account.
If your system is set up to ONLY use T-Account entry in GGMU (option 9027 "Require use of the control number assigning 'T-Accounts' entry in GGMU" is set to Yes), you must change this option to NO to use the ADD button in GGMU to post the one- sided entry to close the year. When finished making the one-sided entry, you can change this option back to Yes.
Run GYEN-Year-End Procedure. This program:
Zeros the revenue and expense accounts (profit and loss accounts).
Optionally clears all transactions from the General Ledger Transaction File, and creates a BBF (Balance Brought Forward) document for all Balance Sheet accounts.
Transfers the month-end balances of each account to the last year Comparative Fields window (accessible from the Go To menu in the Chart of Accounts window)
Rolls the date table forward in Accounting Period Maintenance to reflect the new year.
NOTE : When GYEN completes, you will need to go into Accounting Period Maintenance and change "Current Period 14" to the period you are currently in.
Updates the field "Last Year-End Procedure Run Date" in the G/L Control File (GCON).
NOTE: You can run this procedure while your store is open and point of sale is running.