Changing the General Ledger Fiscal Year End

Transcription

1 Changing the General Ledger Fiscal Year End (while retaining journal detail) Note: This document provides instructions to change the fiscal year end and import journal detail for the current fiscal year. If you do not wish to retain journal detail, please review the attachment, Changing the G/L FYE without retaining journal detail. Overview: Occasionally, after creating new General Ledger data files, Sage BusinessWorks Accounting users find they need to change their company s fiscal year end. These directions assist you in making this change. Read through these instructions completely before beginning. Here s a brief overview of limitations, information you will need, and the steps you will follow: Back up company data. Retain this backup for your archives. Be sure no other users work in this company until you have completed the steps in this document. You can retain journal detail for the new current fiscal year only. (To avoid confusion, this document refers to the fiscal year end to which you are changing with the designation new.) You must obtain prior year balances for all General Ledger accounts from an accountant based on the new fiscal year end. For example, if you are changing the fiscal year end to June and the current month is February 2011, you would need account balances for June 30, You will copy the company data to a holding company. Before beginning, be certain that you have sufficient space on the hard drive where the Sage BusinessWorks data is located. We recommend that you retain this data until you no longer need to access journal detail for the prior fiscal year. In the current company, you will create a new General Ledger, enter balances obtained from an accountant, and import current year journal detail. To ensure data integrity, it is very important to follow all steps exactly as outlined. For simplicity, these instructions refer to the current company as CURRENT_CO and the copy you will create as OLDFYE. Section I: Copy data to a new company In this section, you will copy company data from the CURRENT_CO company to a holding company (OLDFYE). You will use OLDFYE to refer to old journal detail only. You will do all work in CURRENT_CO. To copy a company: 1. Have all other users exit Sage BusinessWorks. 2. From the Sage BusinessWorks Launcher, select Utilities / Maintain Companies. 3. Select the company you wish to copy, and click the 'Copy' button. 4. In the 'Copy Company' window, enter the new company ID. Click 'OK'. After the company copies, the 'Name' field displays the same as the previous company. To change the company name, enter the new company name in the 'Name' field. Click 'Save'. Section II: Verify the current General Ledger data To ensure data integrity, Sage BusinessWorks maintains balances in two ways: each journal entry is written to a file, and that entry is added to and subtracted from month-end balances maintained for each account. Under normal circumstances, the sum of the journal entries should match the month-end balances. Occasionally, due to an incomplete posting or the use of a special utility to change month-end balances, journal detail may not match month-end balances. Rev: 4/28/2011 Page 1 of 5 Changing the G/L FYE while retaining detail

2 In this section, you will first print a trial balance that summarizes journal entries for the current fiscal year as defined in Sage BusinessWorks now (not the new fiscal year to which you are converting). You will use this report to determine whether discrepancies exist between the journal detail and month-end balances. 1. Go into Sage BusinessWorks and enter the CURRENT_CO company. 2. In the General Ledger, choose Reports / Trial Balance. Print a trial balance for the current fiscal year (as it presently exists in Sage BusinessWorks.) Report device: Printer Type of report: Detailed Reporting period: Include all accounts: Include all Departments: Include voided entries: Include zero activity accounts: Include zero balance accounts: Group by journal: Summarize journals: Highlight all journals. Current fiscal year 3. Verify that the balances for each account match the detail: For each account, add the debits and subtract the credits in the Ending Balance line from the beginning balance. (In the example below, you would perform the following calculation: = ) This should match the ending balance on the report. If you found discrepancies in this report, continue on to step 4 to determine the month(s) in which inconsistencies occurred. (In the example below, there is a discrepancy: our calculations showed , not the ending balance shown.) If no discrepancies were found, skip to Section III, Exporting journal entries Cash in Checking A/P SUMMARY January 2011 Summary 01/ PAY SUMMARY January 2011 Summary 01/ Totals for January A/P SUMMARY February 2011 Summary 02/ PAY SUMMARY February 2011 Summary 02/ Totals for February A/P SUMMARY March 2011 Summary 03/ PAY SUMMARY March 2011 Summary 03/ Totals for March Ending Balance Figure 1: Trial Balance Example 4. If you found discrepancies, add the debits and subtract the credits for each month s totals from the prior month s ending balance. (In the example above, you would add January s debits [ ] and subtract January s credits [ ] from the beginning balance [ ] giving the correct January ending balance [ ]. Next, to the January ending balance [ ], you would add February s debits [ ] and subtract February s credits [ ] arriving at for February s ending balance. Since the ending balance on the report shows , you have found the debit discrepancy. Continuing through the rest of the accounts, you would also find one or more accounts that have a February credit discrepancy totaling ) Rev: 4/28/2011 Page 2 of 5 Changing the G/L FYE while retaining detail

3 CAUTION: If the month and year displayed are incorrect, repeat the steps in Section IV, above. If the current month is incorrect, you will be unable to enter account balances for the correct time frame. 5. Make a note of all discrepancies, including the account number, month, and debit or credit amount. This information will be used to make journal entries during the import process in Section VI. (Note: Disregard all future month information on this report. It is not needed for this verification process.) Section III: Export journal entries In this section, you will export journal entries to text files. Later, you will import these journal entries into General Ledger files with the new fiscal year end. 1. In the G/L, choose Utilities / Display G/L Status and make note of the current month:. 2. Export entries for the first month of the new current fiscal year 1. From the Transfer menu, choose Export Journal Entries and use the following parameters: Path: File name: Include what entries: Month: Day range: Leave as is First month of new current fiscal year with extension.csv (for example, JULY11.CSV) Specific day range in a month First month in new current fiscal year Click OK and respond Yes to any queries displayed. 1 to Last day (select the "Last day" check box) 3. Repeat step 2 for each succeeding month of the new current fiscal year through the current month you noted in step 1. Change the file name and "Include what entries" field as appropriate. 4. Repeat step 2, using the file name FUTURE.CSV and choosing Future journal entries in the Include what entries field. Section IV: Create General Ledger data files with a new fiscal year end Now that you have verified data and exported journal entries from the existing General Ledger files, you are now ready to create G/L files with the new fiscal year end. 1. To be certain that you are in the CURRENT_CO company, select File / Select Company from the Launcher menu bar and select the company ID, CURRENT_CO. 2. In the General Ledger, choose Utilities / Create G/L Data Files. Sage BusinessWorks displays a warning that this is an exclusive option. Click OK to continue. A second window provides information about the process you are about to perform and asks if you wish to continue. Choose Yes. Current month (First G/L close): Last month of fiscal year: Select the first month of the new current fiscal year The last month of the new fiscal year Months to keep journal detail: 24 Initial Chart of Accounts from: Company/Sample ID: Include budget information: Include Journals: Include Customized Report Headings: Master consolidation company: Another company OLDFYE 1 For example, if you are changing the fiscal year end to June and the current month is February 2011, you would export data for July In step 3, you would export August 2010 through February Rev: 4/28/2011 Page 3 of 5 Changing the G/L FYE while retaining detail

4 3. When you have verified all the parameters in step 2 above, click OK. Then type CREATE to confirm the creation of G/L files. Sage BusinessWorks warns that GENERAL LEDGER DATA ALREADY EXISTS. Choose Yes to delete existing G/L data files. Then press Enter in response to the informational message explaining the next steps you may need to take. You have just created new General Ledger data files in the CURRENT_CO company. The next sections explain how to enter balances and import journal detail into the General Ledger with the new fiscal year end. Section V: Enter initial balances In this section, you will be entering the General Ledger account balances you received from an accountant. 1. Verify the current month. In the General Ledger, choose Utilities / Display G/L Status. The current month should be the first month of the new current fiscal year. 2. To enter account balances, please choose Accounts / Enter Initial Account Balances. Press Enter twice after reading the informational messages displayed. 3. Click Enter Balances. In the Balances for field, you should see the month and year preceding the first month of the new current fiscal year. Use the figures you received from an accountant to enter initial balances. 4. Print a summary trial balance (Reports / Trial Balance) with Current month for the Reporting Period. Compare the beginning balance column to the accountant s figures. If necessary, go back into Enter Initial Account Balances to correct any errors. Section VI: Import journal detail For each month that you exported, you will now import journal entries, compare a trial balance to one printed in Section II, post any necessary journal entries, and close the month. In these instructions, current month refers to the month currently open in the General Ledger Import entries for the current month. From the Transfer menu, choose Import Journal Entries. Choose the print device for the exception report. Leave the path as is and change the file name to the one you gave the current month s data when exporting in Section III, step 2, above. Leave the Delete file after import check box cleared. Click OK. 2. A message displays explaining the Exception Report that will be processed. Click OK after reading the message. Either print the report or preview it on-screen. In either case, it is important to review the report to ensure that all entries can be imported. Make note of any entries that cannot be posted so that you can post them by hand later. 3. If you previewed the report on-screen, close the report window. Choose Yes if you are prepared to import the journal entries. After the import is complete, you can print a Journal Entry Batch Report if you wish. 4. Print a trial balance for the current month. In the General Ledger, choose Reports / Trial Balance. Print the report using the following parameters: Report device: Type of report: Reporting period: Day range: Current month activity only: Include all accounts: Include all departments: Include voided entries: Include zero activity accounts Printer Detailed Current month 1 to Last 2 To check the current month in the General Ledger, choose Utilities / Display G/L Status. Rev: 4/28/2011 Page 4 of 5 Changing the G/L FYE while retaining detail

5 Include Zero Balance accounts: Group by journals: Summarize journals: Highlight all Journals. 5. Did you note any discrepancies in Section II, step 4 for the month you are currently importing or find exceptions in step 2 of this section? If so, choose Entries / Post to Journals. Post journal entries to correct any inconsistencies found. Be sure to use a posting date for the month in which you are working. 6. Close the current month. Choose Close / Close Current Month and follow the steps to do a month-end close, typing the name of the month you are closing when prompted. 7. Repeat steps 1 through 6 to import each month of the current fiscal up to but not including the current month you noted in Section III, step 1, above. 8. Repeat steps 1 through 3 to import journal entries for the current month as noted in Section III, step 1, above. Post any journal entries noted in the Exception Report. (Do not close after importing current month journal entries.) 9. Repeat steps 1 through 3 using the file name, FUTURE.TXT. Post any journal entries noted in the Exception Report. (Do not close after importing FUTURE.TXT.) If you have completed all steps correctly, the current balances should be the same in OLDFYE and CURRENT_CO except for the Sales, Expense, and Retained Earnings accounts. (These accounts are different, because their balances are based on the fiscal year end.) You re almost finished! Section VII: Change the fiscal year end in other modules To change the fiscal year end in each module: Choose Utilities / Maintain?? Parameters, where?? is the module name. Then change the setting for the fiscal year end on the window displayed and save the change. Notes: Changing the fiscal year in subsidiary modules does not recalculate year-to-date totals. These totals are reset when you close the last month of the new fiscal year. Accounts Payable Note: Because of Federal tax reporting requirements, 1099 information is retained on a calendar year basis, regardless of the fiscal year end you choose here. Payroll Note: Because of Federal and State Income tax reporting requirements, Payroll functions on a calendar year basis only. Section VIII: Delete OLDFYE Eventually, you will no longer need to access information from the old company. When you are ready to delete it from the system, just follow these steps: 1. Back up the data first! 2. If you are currently in the company OLDFYE, select File / Select Company from the Launcher menu bar and select any other company. (You cannot delete a company you are currently accessing.) 3. From the Utilities menu, choose Maintain Companies. Click the lookup button and choose OLDFYE. 4. Choose Delete and confirm your intention by typing DELETE and pressing Enter. Rev: 4/28/2011 Page 5 of 5 Changing the G/L FYE while retaining detail