Fiscal Year End Close

Transcription

1 HowTo Fiscal Year End Close Contents Introduction... 1 What is a Soft Close?... 1 What is a Hard Close?... 2 Soft Close... 3 Hard Close... 7 Re-open Fiscal Year Introduction This document is designed to give the reader an overview of the year end functionality including: Soft Close (Year End Simulation) Hard Close (Fiscal Year End) Re-open a Fiscal Year What is a Soft Close? A Soft Close is achieved by running the Year End Simulation function (SIMULFINES) which sets up the Trial Balance for the next or new year by updating/rolling the Opening Balances and Retained Earnings into the new year without creating the New Period/Year End journal entries. In other words, it simulates the closing of the year. This function can be run as often as needed when activity has been made to the previous year. GMM revised 3/25/16 Page 1 of 15

2 What is a Hard Close? A Hard Close actually changes FY status to Closed and updates the account values accordingly by producing a New Period journal Entry. All previous fiscal years and periods must be closed, the new year must be in an Open status with the at least the first period in an Open status. Once the Fiscal Year End function (FIYEND) is run and the year is closed no further activity can be posted to the year although X3 includes a Re-open Year End function (OPNFIY). This function will delete the NP (New Period) journal entries and requires Fiscal Year End function to be run again to close the given Fiscal Year. GMM revised 3/25/16 Page 2 of 15

3 Soft Close This is not a required step in the Fiscal Year End process but it IS required if you need to Simulate the New Year prior to hard closing the existing year. This process must be re-run whenever there is a change made to the previous year general ledger and this process does not require all periods to be in a closed status. Important Note/Concept: You will ALWAYS run the Year End Simulation for the new year (i.e. the year that you want to roll the Opening Balances into) and typically you will run each company individually. Our example: year to close = 2017 and the new year is Go to Financials > Utilities > Closing > Year End Simulation 2. Select the applicable Ledger (in a single Legislation environment the Legal Ledger is also the Analytical Ledger). Tab. GMM revised 3/25/16 Page 3 of 15

4 3. All Companies = No (Uncheck the box) 4. Select Company 5. Tab to the Fiscal Year and X3 will automatically enter the next open year (ie the New/Next year) 6. You will ALWAYS select General balance and Analytical balance. These fields are check marked by default. 7. Click OK. 8. You will receive a log indicating the Simulation was successful noting the Base Year = simulated year to be closed (where the Opening Balances were rolled from ). Any errors will need to be addressed and the Year End Sim would need to be re-run prior to continuing. GMM revised 3/25/16 Page 4 of 15

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6 9. Sample Trial Balance for 2013 (New Year) Retained Earnings and expense accounts GMM revised 3/25/16 Page 6 of 15

7 Hard Close This process will close the given fiscal year so that no other entries can be posted to that year (without performing the Re-open Fiscal Year function) and also create your new period journal entries rolling into Retained Earnings. Our example: year to close = 2017 and the new year is If needed, set SUP General Parameter ENDDAT to 12/31/xx where xx is a couple years in the future. 2. V11 Year End Parameter setup is different from previous versions and should be setup as follows: GMM revised 3/25/16 Page 7 of 15

8 3. The next fiscal year must be opened prior to closing the current fiscal year (2013 in our example). 4. The first period of the next fiscal year status MUST = Open. 5. Price updates for the next year must be entered (If applicable). 6. Currency Conversion Variance (If applicable. It is recommended to run for Balance Sheet variance only with an automatic reversal in the next month). 7. Run the Stock Accounting Interface (FUNSTKACC) to insure it is error free. GMM revised 3/25/16 Page 8 of 15

9 8. Run the WIP Accounting Interface (FUNWIPACC) to insure it is error free. 9. Review the Accounting Tasks / Journal Status Monitor for: a. Journals on hold = 0 b. Matching = 0 (highly suggested but Optional) 10. All periods for the closing fiscal year must be closed (this should insure that all monthly processing is complete and up to date including Final Validation). GMM revised 3/25/16 Page 9 of 15

10 11. Run all reports necessary for yearend balancing (AP/AR ATB (Aged Trial Balance), Stock Status, etc). GMM revised 3/25/16 Page 10 of 15

11 12. Year End Close (screen shot assumes single Legal Ledger setup or can run for All Ledgers) a. Select Company. Tab. b. All Ledgers = No. Tab. c. Ledger = Legal. Tab. d. Note that X3 will automatically default to the New/Next year. e. The ANX document should default to NEWPR. Tab. f. The ANX journal should default to NEWPR. Tab. g. Click OK to close the year. h. You will receive a Year End Log GMM revised 3/25/16 Page 11 of 15

12 i. You will also note the New Period (NEWPR) journal entry(ies). You have 2 or more depending on your setup, number of sites, etc. GMM revised 3/25/16 Page 12 of 15

13 j. Fiscal Year 3 is now in a Closed Status 13. Cost updates/transfers must be entered/updated (If applicable and can be performed after the year is closed). 14. Budget Code Maintenance (If applicable and can be performed after the year is closed). GMM revised 3/25/16 Page 13 of 15

14 Re-open Fiscal Year You may find it necessary to make some adjusting journal entries if the year has been closed prematurely. 1. Accounting Task / Journal Status monitor Journals on Hold MUST = 0 2. Re-open Fiscal Year this function will DELETE the NEWPR journal entries that were created during the YE Close! You will also receive a log file after the year is successfully reopened. a. Note: If the NEWPR journal entry is in a Final Status, it cannot be deleted and you will receive the following message. In this case, you will need to contact your partner (NEXTEC) to perform this for you as it requires a data change. b. Once you change the status to Temporary on the je s (usually 2 or more), you can rerun the Re-open Fiscal Year function. Important NOTE: NEVER manually change or delete a NEWPR journal entry. This will cause serious data corruption. 3. Run Year End Simulation as instructed on the log file. GMM revised 3/25/16 Page 14 of 15

15 4. Re-open necessary periods. You will need to re-open the periods sequentially going backwards until you re-open the earliest period needed (for ex: if you need to make a journal entry to November, you will need to reopen December first and so on). 5. Follow the Close Fiscal Year steps to reclose the Fiscal Year. GMM revised 3/25/16 Page 15 of 15