Information Systems:Fiscal Year-end Procedures (ASW)

Overview

Every year at January's end, there are several checks and processes that need to be performed to ensure a successful turn-of-year in ASW.

This page is based on the following document: Fiscal 2017 Year End Procedures.pdf.

STEP 1 – UPDATE YEARLY TABLES

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Done by Accounting.

Prior to rolling the accounting period from December 2016 to January 2017 (using the normal period rollover routine) the following tables should be set-up for the new year (this may be done at any time prior to the end of the year):

1. IMPORTANT: Journal Number Series – Add a new series for 2017/2018 if not already done. Tip: you may add several years at once.
2. IMPORTANT: Voucher Number Series Add and copy last year/series number and reset to first number of the series. You may have 20 – 30 different voucher types to copy. Tip: you may add several years at once.
3. Document Number Series – review only, however continuous series are normally used and not dependent on year. Only create new document number series for those series which are type = 1(yearly). If all are equal to type = 2(continuous), then no changes are necessary. In our experience most companies use type 2. Most likely no action required.
4. Exchange Rate, system currency - Should already have a time period of ‘*’ which means fixed at 1.000. If so, no action required. If your system currency uses a yearly rate, enter the new year and a rate of 1.000. If you are single currency, then no action required.
5. Exchange Rate, foreign currencies – Update any foreign currency exchange rates as needed.

Notes

• Looks like these series have been set up to year 2023.

STEP 2 - REVIEW GL CONTROL FILE

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Prior to running the period roll from period 12 to 1 of new fiscal year, the following values in the GL control file should be reviewed:

1. We strongly recommend closing old accounting periods however it is not ‘technically’ necessary.
2. The last closed period should be within the current year(No less than 1513). If this is not the case, close the appropriate periods to at least the current year. This will help maintain the database and ensure that opening balances for 2017 are created correctly.
3. Assure that the ‘actual period’ is the last period in the year, (in this case December 2017) which is being rolled/closed. If not, roll the period until it is current.

Notes

• G/L control file is SROSTYSF.

STEP 3 – EXECUTE PERIOD ROLL FROM 12 TO 1

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Done through job scheduler - EOMASW

THERE IS NO DIFFERENCE IN ROLLING TO A NEW YEAR AND ROLLING FROM MONTH TO MONTH FROM A USER-PERSPECTIVE; HOWEVER, THIS JOB MAY TAKE SIGNIFICANTLY LONGER THAN OTHER MONTHS. THE REASON IS DUE TO THE SYSTEM CREATING ‘OPENING 
BALANCES’ FOR THE NEW YEAR AND PURGING SUMMARY BALANCES. DO NOT END THIS JOB IF IT APPEARS TO BE TAKING TOO LONG.

This job is typically on job control/scheduler and runs automatically. However if it is not, here are the instructions:

1. In ASW navigate to the following area: Financials/Financial Accounting/Period end tasks
2. Select: Execute period rollover/reorganisation/backup
3. Check ‘Execute’ under ‘Period roll-over’. You may optionally set a start time. (24hr clock) For example you could select 2300hrs and date of 12/31/16.

STEP 4 - REVIEW ROLLED GL CONTROL FILE – AFTER PERIOD ROLL

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The system will automatically increment to the first period of the new year. The following GL control file fields should be reviewed. “Actual year/period” will represent the new year and period 01. (1701)

1. Review the “Period name” fields and make any appropriate changes.
2. Review the “End date” for each period. The rollover process will have incremented each period’s “End date” year by one. If a change needs to be made to this field the super user profile must be used. Common example are those companies on a 4-4-5 calendar.

Make sure to set the correct end-date for February during a leap year.

STEP 5 – DISTRIBUTION “TURN OF YEAR”

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Done through job scheduler - EOMASW

In the item, customer and supplier files, statistics are accumulated for the year (number of orders, sales, etc.). A “turn of the year” program must be run to clear these year-to-date fields out for the year. The program will move these figures to prior year buckets while clearing out the current in anticipation of the new year. Note, if you are on a fiscal year for your accounting periods, the turn of the year still should be run after close of business December 31st if you want those statistics to be calendar not fiscal. Not applicable to most companies. To do the “turn of the year” …

• Select menu option “System management”.
• Select menu option “Periodical routines”.
• Select menu option “Logistic periodic tasks”.
• Select menu option “Distribution periodical tasks”.
• Select menu option “Turn of year”.

You want to select and execute this option only after all transactions are completed for the year. The "year-to-date" fields on the Name and Item Files will be rolled to "last year-to-date" and zeroed for year to date. The date range for "turn of year period" is from the DIS Control File. A warning message will be displayed if the current date is out of this range. After executing the Distribution "Turn of the year" routine, you may go into the DIS Control File to change the date range for next year. This turn of year routine should only be executed after all transactions are completed for the year. The year to date fields will be rolled to “last year to date” and zeroed out for the current year. The date range for the “turn of year period” is found in the DIS control file. A warning message will be displayed if the current date is out of this range.

STEP 6 - RECORD RETAINED EARNINGS AND CLOSE PERIOD 13

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Done by Accounting.

The following is the recommended procedure for closing out the year. This can be run at ANYTIME in the new year. Typically, this is not done until all adjusting entries and audit entries(if applicable) are made.

6.1 Posting of Current Year Income to Retained Earnings

NOTE: During the period roll, end of year balance sheet amounts are brought forward into the new year’s opening balance. From that point on, any adjustments made to prior year balance sheet accounts will update these opening balances. NOTE: Make adjusting entries to period 12 of year being closed. Examples: Tax, Audit, other year-end adjustments. This will leave period 13 reserved for use by the yearend close entry. If you prefer to post these entries in period 13, be sure to report appropriately in report writer.

1. After all adjusting entries are completed, establish net income figure. This must be the sum of all income accounts. 2. Create G/L account 999998 ‘Income Summary’ (or make sure it exists) (‘Balance/Trade type’ in the account file must be set to code for income statement type). 3. Post the following G/L entry to period 13 of the year being closed. (Assumes year-end result is a gain. Entry would be opposite if a loss)

Account Description	Debit	Credit
Income Summary(999998)	XXX	-
Retained Earnings	-	XXX

Note: For any report which includes period 13, make sure not to double count current year earnings on your balance sheet.

6.2 Close the Final Accounting Period 13

Run routine ‘Close Accounting Period’ as normal. A couple extra steps are added from the normal month end:

1. ‘Period to be closed’ will be 1613. A warning message will display ”Pressing F8 will check balance on trade accounts…” Press F8.
2. System will check that all balances of income statement accounts net to zero. A message will be displayed if it does not, with the amount that needs to be posted.
3. IMPORTANT: ‘Create Opening Balances’ should be left as ‘N’. (‘Y’ will create opening balances as transactions in period 1701, instead of showing as a separate beginning balance.)
4. Press enter. Printer queue is displayed. A report of the final closing balance for period 12 and final opening balance for period 01 will be printed.