Year End Duties

Housekeeping before Purchases & G.L. Year Ends

Apart from posting ancillaries up until the year end date, these are the things to do before it's "too late"

Sales

• Nothing to do - The General Ledger Year End will have no effect on the debtors or inventory.  Additional year end reports are required for sales and inventory but these reports have to be done before sales are month-ended.  See also Month-end check list.

  Debtors & Inventory are best kept up-to-date and free of errors IN REAL TIME. (See Year-End procedures in the manual for check list.)

Purchases

• Monthly bank recons must be done to ensure that all mistakes have been corrected in the creditors entries.
• Where required, flag redundant transactions. This is especially important with very active accounts where the balance never reduces to zero. Remember - only redundant transactions which have also been posted to the General Ledger are removed by the year-end process.
• If, due to a policy of paying accounts in rounded figures which do not correspond exactly to any specific invoices, it is impossible to flag any transactions as being redundant, simply enter two equal but opposite payment entries to that suppliers account. Do this as follows:
• Choose a date just prior to the end of the current financial year, or older, and take note of the balance of the account at that date as shown when viewing the account or on a ledger printout.
• Go to P(urchases T(ransactions P(ayments and call up the account.
• Enter the amount decided on in 1. above and describe the payment method as "BAL. C/FWD" and use, for example, account 10900.
• Go to P(urchases T(ransactions P(ayments and call up the account again.
• Enter the amount decided on in 1. above preceded by a minus sign (-) and describe the payment method as "BAL. B/FWD" and use the same account as in 3. above.
• Then go to P(urchases, P(rocedures, F(lag redundant, and flag all the transactions that match up to the amount you chose, plus the payment called "BALANCE C/FWD"
• View the account asking NOT to display redundant transactions. See that the transactions that you wish to carry forward to the new year are the only ones that display.
• Then do the next account, until you are happy that your suppliers records are tidy.

  Do an integrity check as follows:

• Print an aged analysis (P(urch R(eports A(ged)
• Print a Creditors Control Account (P(urch R(eports C(ontrol)
• Print an unposted transaction report (P(urch R(eports M(onthly detail O(nly unposted)
• Check that 1. above matches 2. above.
• Subtract the creditors balance to the unposted "Change" as reported with 3. above.
• Display the General Ledger Creditors account number 21100. (G(eneral F(ile maint C(hart of acc 21100) and see that the figure obtained in 5. is the same as the Balance shown on the screen.
• Report any corruption to Support for repairs before doing year end.
• Reconcile the bank in the General Ledger for the year-end date.

  Before General Ledger Year End

  General Ledger

  Do a quick integrity check by G(eneral R(eports Q(uick summary as at <blank> to S(creen, and see that the figure in the bottom right-hand corner is zero.

• Report any corruption to Support for repairs before doing year end.

  Reconcile the bank for the year-end date.

• Remember to do the Purchases Ledger year end before using the new year in the General Ledger.  
• Do not by-pass the General Ledger year end by changing the date under file maintenance.   The year-end program automatically increments the year.