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 or in Clear Revenue/Cost Balances.
• Update the voucher from the hold table to the ledger. This is done using the Update GL Vouchers for the general ledger and Update IL Vouchers 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 page.
• 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 page. 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.