Financials Year End Processing

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Financials Year End Processing

• Presented by
• PARADIGM Business Solutions, LLC
• Matt Pieper
• mpieper_at_paradigm-erp.com

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(No Transcript)
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General Ledger

• To Review - Closing the Period is completed by
  running the Period Closing GL199 program.
• The GL199 Creates Reversing Journal entries
• Labels the period as Closed
• Increments the current period by one, or in case
  of Year End resets the General Ledger to the
  first period.
• Changes the status of the record header for
  processed journal entries from Posted to
  Historical.

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General Ledger

• Additional processes at Year End
• Rolls account balances so that the current year
  balances reside in last year and the last year
  balances reside in previous year.
• Calculates beginning balances for the new year
  for all balance sheet accounts.
• Creates consolidation records for the new year.
• Moves current year period ending dates to last
  year and next year period ending dates to current
  year.
• Calculates period end dates for next year.
• Creates a closing entry with a status of History
  in period 99 that transfers the balance in the
  undistributed retained earnings account to
  retained earnings.

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Recommended Year End Close Procedures

• Complete a General Ledger system Back Up.
  (Recommended)
• Review Next Calendar Year Dates and update as
  necessary.
• Final Close all periods of Last Year using GL199.
  (Required)
• Run financial statements for last year (GL291,
  GL292, GL293) to make sure company is in balance.
• Roll Budgets forward one year using FB120, to
  continue maintenance free reporting within the
  current fiscal year. (Optional)
• Verify all systems are closed. Check GL01.
  (Recommended)
• Run Currency Revaluation Program. (Optional)
• Run the Translation calculation program. Optional
• Save Last Year actual/unit data into a budget.
  Run FB120 (Optional required prior to 7.0
  version of software)

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Year End Close Procedure - Continued

• Close the last period of the current year using
  GL199. (Required) Recommended closed with a
  Limited Status.
• What is the difference between limited and final
  close status?
• Other optional processes
• Adjust Cost Allocation valid posting date ranges.
  CA10.2
• Adjust Recurring Journal valid posting date
  ranges. GL70.2
• Delete Transaction History GL300
• Delete unused posting accounts from accounting
  units. (Optional) Run GL122 to delete posting
  accounts no longer used that have not had
  activity in the last two years.
• Delete unused detail accounts from the chart.
  (Optional) Run GL100 to delete posting accounts
  that are not used any longer and havent has
  activity for more than two years.

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Accounts Payable

• Period Close AP195 is run to ensure that all
  transactions for the period have been processed
  and interfaced to the general ledger.
• After the Period Close AP195 has been run for the
  last period of the year the Vendor Balance Year
  End AP199 should be run.
• This program has two purposes
• The program requires that the new year period end
  dates to be entered and then updates them.
• Transfers current year vendor balances to the
  last year balances.
• Archiving/Purging Vendor Invoices
• Archiving invoices is used to speed up batch and
  on-line performance.
• May be used instead of purging
• You can inquire and or report on archived
  invoices.
• Purged invoices removes records
• Purged invoices may be archived into data files
  outside of Lawson.

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Accounts Receivable

• Closing the Accounts Receivable Application at
  year end requires no additional programs.
• The AR199 is run with the year end parameter
  selected with Y
• The AR199 at year end will in addition to its
  normal processes rolls the following transaction
  amounts from the current year periods to the
  corresponding last year periods for
• Period Billed
• Chargebacks
• Credits
• Write-offs
• Payment
• Moves any value for the next year into the first
  period.
• Moves the Invoice Payment Average IPA and Days
  Beyond Terms DBT totals to last year to update
  customer statistics.
• Rolls the ending balance to the balance for the
  year, as well as period, on the Audit Summary
  AR194.
• The AR199 should flag you to run the year end
  option for the last period.
• Do not run the AR199 twice.
• To keep system running smoothly you may wish to
  purge historic invoices using AR300 and Customers
  using AR301.

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Activities

• Closing the Activities Application allows the
  user to control transactions for balancing
  purposes.
• When activity transactions are posted, they post
  to the period, year, and Life to date activity
  balances. This is based on the calendar
  associated with the activity group.
• A majority of users do not close activities
  because the Activities application does not have
  the ability to back post to a closed period.
• There are no special procedures for year end
  processing.

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Asset Management

• At year end a special review of assets placed
  into service is required.
• This rule requires that if 40 or more of all
  assets placed into service in the last fiscal
  quarter special depreciation calculations apply.
• To verify if the 40 rule applies.
• Release all transactions using AM170
• Run the Additions Report AM220 for all assets put
  into service for the entire year.
• Run the Additions report AM220 for all assets put
  in service in the last quarter.
• Compare the reports to verify if the last quarter
  assets where at least 40 of all assets placed
  into service for the year.

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Asset Management

• If the 40 rule applies you may adjust the last
  quarters in place assets depreciation
  conventions using the Mass Adjustment program
  AM125.
• In the convention field of the Asset Book
  Adjustments tab enter the MQ and choose the
  change form action.
• Then update the assets by running the Processing
  Release AM170.
• Then complete the normal period close processes.
• Run Depreciation Calculation AM180.
• Run system reports and verify asset information.
• Once satisfied that the reports and assets are
  correct post and close the period by running
  Period Close AM190.
• Running AM190 with the release parameter set to
  yes is irreversible.

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Asset Management Cont

• To close year end run year end reports.
• Addition Report AM220
• Adjustment Report AM225
• Transfer Report AM230
• Disposal Report AM240
• Projection report AM255
• Asset Report AM260
• Property Report AM265
• Account Balance Report AM270
• Current Year Deprecation Report AM280
• Book Comparison Report AM285
• Tax Credit Report AM290
• Recapture Report AM292
• FASB Reconciliation Report AM295.

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Asset Management Cont

• You can not run these reports once the year end
  is processed.
• Back Up your data.
• Run the Year End Close AM195 to close out the
  reports.
• Verify that the year-end close has been
  successful by opening Calendar AM01.1 and inquire
  by company and book.