Handle Year Closing
The Year End Accounting in IFS/General Ledger contains functions
for entering and transferring the closing balance for asset and liability
accounts from one accounting year to an opening balance for another
accounting year per ledger.
Preliminary Transfer of Balances
Do the following to handle the preliminary end of year settlements for a
selected ledger:
- Transfer the closing balances preliminarily from one accounting year to the next
accounting year.
- Check the preliminary transfer.
A preliminary opening balance can be transferred to the
next accounting year an unlimited number of times.
Final Transfer of Balances
This function transfers final balances of a selected ledger from one
accounting year to a new accounting year either as balances only or as one
voucher for the closing balance and one voucher for the opening balance.
Do the following to handle the final end of year settlements for a selected
ledger:
- At year-end, when the final books have been agreed
on, post the profit or loss for the ledger. This can be done either manually in
Voucher Entry or in
Clear Revenue/Cost Balances.
- Update the voucher from the hold table to the ledger. This is done
using the Update GL Vouchers window
for the general ledger and Update IL Vouchers window for the
internal ledgers. After the voucher
is updated, both the balance sheet and the profit and loss statement will balance.
- Close the ledger periods for the accounting year. This is done using the
Accounting
Periods window.
- Make the final transfer of balances, i.e., make a final transfer of the closing balance
from one accounting year to the opening balance for the next accounting year.
- After the final transfer of balances has been
successfully completed, the accounting year will be closed for the selected
ledger.
- A manual voucher is posted to the first period in
the new year. This voucher removes the amount from the Net Profit / Loss
account and replaces this with, for example, either the Accumulated Profit/Loss
or Profit/Loss Last Year accounts.
- It is possible to open up a closed accounting year from the
Accounting
Periods window. The final transfer of balances will then be rolled back and must be
performed once more in order for the accounting year to be closed
again.