How do I run a year end close?

Question:

How do I run a year end close?

Resolution:

From the Year End Processing Menu take Option 1 to Close the Year.

This menu option closes out a fiscal year for a selected corporation/year; closing out all P&L accounts, posting an entry to a user specified Retained Earnings/Net Assets account# and creating opening Balance Sheet entries. Balance forward entries to the balance sheet accounts can be made either at the highest level (i.e. the Corp/Fund level using Div# 000) or at all of the valid entity levels (i.e. Corp/Div/Dept/Job using the appropriate division#, department# and/or job#). In order to have balance forward entries created at all entity levels, the corporate specific profile option #2, ‘Year End: Create B/F for all Entities’, must be activated. If that profile option is set to ‘Y’ and option #3, ‘Year End: Retained Earnings at Corp Level only’ is also set to ‘Y’, the entry to retained earnings is created at the Corp. level. If #2 is set to ‘Y’ and #3 is set to ‘N’, all entries including retained earnings are created at the appropriate entity level. See the sample prompt screen below,

GLDV09 G/L YEAR END CLOSING

ENTER FISCAL YEAR TO CLOSE . . . . . . . 1994

G/L ACCT # FOR RET. EARNINGS . . 290000 FUND BALANCE

F3=EXIT F4=PROMPT(*) F14=ENTITIES

A list of these automatically created entries is created during this job. (Once the job is complete, you are ready to print financials for the new year.) The Year End Close can be run as many times as necessary in order to close the year, and does not interfere with posting entries to the current year. Typically this job should be run when all entries, (excluding year end adjustments) for the fiscal year have been entered. It should then be run again after the adjusting entries have been made, (adjusting entries should be made to the last period of the year being closed), as it deletes the previously created opening balances and the posting to Retained Earnings/Fund Balance, and recalculates them based on the adjustments. The opening balances that are created have a book code of ___A.