Procedures & Tips and Tricks For End of Year Process

Transcription

1 Procedures & Tips and Tricks For End of Year Process Creating New Fiscal Period When the End of Year process is run the EbixASP program will automatically create the new fiscal period (if you have not set it up manually). If you are not ready to run the End of Year process for the expiring term you will need to manually create the new fiscal period. Procedure for Creating Fiscal Period Manually Navigation: Maintenance Module > Accounting Set-Up > General Ledger Make sure that you have the latest General Ledger Listed at the top of the screen Page 1 of 22 Procedure and Tips & Tricks for End of Year Process December 2013

2 Press the Create New Fiscal Year option this does not close the prior General Ledger Period. Important Note: Make sure that you Do Not select the Add General Ledger Button. The program will copy the previous year s information. This information will be displayed on the New General Ledger Details Screen. If you intend on making any changes please call our office to discuss prior to doing so. If you make any changes Press SAVE. At this time that you can make changes to your General Ledger Accounts Add, Edit and Deactivate any non mandatory accounts. Do not delete any accounts without contacting Ebix for verification. You can Edit a mandatory account Strongly recommend that you contact Ebix before proceeding as this could have a huge impact on the Posting Interface and reports Remember to Save all the changes Page 2 of 22 Procedure and Tips & Tricks for End of Year Process December 2013

3 You can then go on to the next tab, Lock G/L Posting Dates. This allows you lock the general ledger as of any date of that month. Once a date is selected, no accounting can post to that date or prior. Click Save when finished. Once this screen is completed you are finished with the setup of the new general ledger. Other Areas to Review 1) Transaction Codes Navigation: Maintenance Module > Accounting Set-Up > Transaction Code Set Up Select the General Ledger for the new term at the top It is at this time that you can change/deactivate the codes as required Press Save to keep the changes Page 3 of 22 Procedure and Tips & Tricks for End of Year Process December 2013

4 2) Tax Entities Navigation: Maintenance Module > Tax Setup > County/State Tax Rates If you have Tax Entities Examples Paying Surplus Lines tax to a Carrier or MGA Taxes collected and paid by the Agency directly to the State Verify that Tax Transaction code Field shows the New General Ledger term. If you do not need to invoice this tax in the prior period then you can change the Tax Transaction Code Field to the new term. If you need to have this available for the prior term you will then need to press the Add button and put in the details. Page 4 of 22 Procedure and Tips & Tricks for End of Year Process December 2013

5 3) Posting Interface Navigation: Maintenance Module > Accounting Set-Up > Posting Interface - Select the new Fiscal Year Verify that the appropriate accounts are being referenced for all areas Assets, Liabilities, Equity, Income & Expenses (do not make any changes). - 4) Recurring Journal Entries Navigation: Accounting Module > Journal Entries > Recurring Journal Entries Recurring Journal Entries are set up based on the G/L term Procedure to Copy your recurring Journal Entries Page 5 of 22 Procedure and Tips & Tricks for End of Year Process December 2013

6 Highlight the Recurring Journal Entry that will continue/applicable in the new G/L term Press the Copy button Make the necessary changes with special attention to the following fields System will assign a new Group code / Can be changed by the User General Ledger Start Date End date When done press Create Copy & Close You will receive message - The Journal Entry was successfully copied. Procedure Complete 5) Vendors Navigation: Accounting Module > Vendors > Add/Edit Vendors > Highlight the vendor and go to the Accounting Information Tab on the lower pane Change the Default Accounting G/L to the new year and save Go to the Check Information Tab on the lower pane Change the Default Accounting G/L to the new year and save Page 6 of 22 Procedure and Tips & Tricks for End of Year Process December 2013

7 Significant Reports It is strongly suggested that prior to running the end of year process copies of the following reports should be retained. An end of day should be run first for the last day of the fiscal year to ensure all items are posted. This data cannot be recaptured once you have entered Accounting in the new Fiscal Year. These reports can be saved as Word or Excel documents and can be referenced at any time: Client Aging Broker Aging Finance Company Aging Current Carrier Receivable/Payable Detail Producer Payable Broker Commission Detail Vendor Age Analysis Optional reports: Page 7 of 22 Procedure and Tips & Tricks for End of Year Process December 2013

8 Broker Statements Client Statements Producer Statements End of Year Process Navigation: Accounting Module > End of Period Processes > EOY Process The End of Year process is necessary to close the books for the applicable fiscal year. This process is run to accomplish the following: Checks that the subsidiaries are in balance with the general ledger. If the system is out of balance it will be indicated on the Accounting Transaction Log. Creates the Starting Balances for the new Fiscal Period Once the year-end has been processed, the income and expense accounts are zeroed out for that year and written to the Retained Earnings account. Process is done separately for each general ledger. Once the End of Year process has been completed the Agency can still make any necessary year end adjustments by using the 13 th Month Journal Entries program - See section on 13 th month adjustments Please note that you will not be able to run the End of Year process If the system is Out of Balance Until all items (listed below) have been completed or deleted for the applicable fiscal year. Checks Deposits Invoices Journal Entries To view list of Uncommitted Items Navigation: Accounting Module> End of Period Processes > EOY Select the General Ledger that you want to Close Select the Uncommitted Items button Report will display giving details of all the Uncommitted items (if applicable) See Tips and Tricks section of this document for Committing or deleting these transactions Page 8 of 22 Procedure and Tips & Tricks for End of Year Process December 2013

9 Procedure once all items have been committed Navigation: Accounting Module > End of Period Processes > EOY Process Select the applicable General Ledger Press the Process Option Page 9 of 22 Procedure and Tips & Tricks for End of Year Process December 2013

10 System will indicate if Process was successful and to view the transaction log for details Transaction Log Navigation: Accounting Module > End of Period Process > Transaction Log 13th Period Adjustments Navigation: Accounting Module > Journal Entries > 13 th Period Adjustments The ability to make Year end Adjustments once the Year has been closed The user interface is identical to Manual Journal entry screen the only difference is how it reacts based on the following. The transaction date automatically defaults to the Last day of the fiscal year that was closed prior and cannot be changed. Page 10 of 22 Procedure and Tips & Tricks for End of Year Process December 2013

11 13 th Period journal entries can be done on a closed general ledger If the adjustment is to an income or expense account, the adjustment posts and then zeroes out that income or expense again and writes the offset to the retained earnings account. If the account is an asset or liability then when the journal entry posts it will update the totals for the account and carry the balance forward to the current month. Note: Those accounts that are marked not to allow journal entries in the Chart of Accounts will not be displayed in the drop down list. (See Tips and Tricks Section General Ledger 13 th Period Journal Entries for further details) A drop down of different journal entry types will show. The regarding field will have a drop down depending on the type of Journal Entry selected and the account number will default Exception is if the type of Journal Entry is Other If the account selected is one that has subsidiaries, it is mandatory that the type and regarding be selected. Those types are client, broker, producer, carrier, finance company, tax entity and vendor. If the policy number is entered then the bill type will default from there. Otherwise a bill type will need to be selected. When the journal entry posts it will create records in the sub ledger files according to the type of journal entry entered. It updates the general ledger totals in the month to date and year to date fields for the last month of the previous fiscal period and carries the balance forward to the current date. Procedure Navigation: Accounting Module > Journal Entries > 13 th Period Adjustments Press Add Complete the General Information tab Press Save Page 11 of 22 Procedure and Tips & Tricks for End of Year Process December 2013

12 Select Journal Entry Detail Select Add Item Complete the Detail Information tab for one side of the entry Press Save Press Add Item Page 12 of 22 Procedure and Tips & Tricks for End of Year Process December 2013

13 Complete the other side of the entry Press Save Continue Process until the proof is 0 Press Close or the Red X Press Commit/Post in order for transaction to hit the General Ledger 13 th Period Adjustments can be done at any time to the previous fiscal period and may be done multiple times. Page 13 of 22 Procedure and Tips & Tricks for End of Year Process December 2013

14 Remember to reprint your financial reports for the closed fiscal period when done since the account balances will have changed. Tips and Tricks End of Day Process Navigation: Maintenance Module > End of Period Process > EOD Process Or Accounting Module > End of Period Process > EOD Process When you run EOD on the last day of the applicable General Ledger All invoices in suspense will remain in suspense until the effective date of the invoice All unreleased installments will carry forward Be sure the recurring journal entries have been processed for the current period. (Recurring journal entries will need to be setup for the new fiscal year). General Ledger 13 th Period Journal Entry If the General Ledger account is not available in the drop down list it has not been set up to do Journal Entries Procedure to Verify/Fix, if necessary Navigation: Maintenance Module > Accounting Set Up > General Ledger Select the appropriate General Ledger Select/Highlight the appropriate G/L Account from the lister Verify on the Account Detail tab if Journal Entry Field is set to Yes Page 14 of 22 Procedure and Tips & Tricks for End of Year Process December 2013

15 Posting can still occur to a previous fiscal period as long as the end of year has not been processed. Following explains the procedures: Invoicing Until the previous General Ledger is closed via the End of Year Process, you will be presented with this screen when creating an invoice: In most cases the user will select Ok as this invoice is to appear as a transaction done on the new term If you need to include this invoice in the prior fiscal period Select Post in Prior Period Page 15 of 22 Procedure and Tips & Tricks for End of Year Process December 2013

16 You will need to go to the Invoice Details tab and change the Transaction date to reflect the date you want it to post in the prior G/L Press Save Note this will change the reports (where applicable) Lock G/L Posting Dates. The general ledger can be locked as of any date in any month to prevent any additional posting to occur to that period. (This can be unlocked at any time). Navigation: Maintenance Module > Accounting Set Up > General Ledger Procedure: Select the appropriate General Ledger Go to the Month and select the day from the drop down. No entries will be able to be posted to the General Ledger for this date and prior for this Fiscal Period Press Save Page 16 of 22 Procedure and Tips & Tricks for End of Year Process December 2013

17 Posting to Prior Period Cash Receipt Change the following fields on the Deposit Information tab General Ledger Transaction Date Page 17 of 22 Procedure and Tips & Tricks for End of Year Process December 2013

18 Posting to Prior Period Disbursements: Change the following fields on the Check/Electronic Information tab General Ledger Check Date Posting to Prior Period Manual Journal Entries Change the following fields on the General Information tab Transaction Date Verify that the correct G/L period is defaulted Reports: Page 18 of 22 Procedure and Tips & Tricks for End of Year Process December 2013

19 Most Agencies require a snapshot of the following reports for Tax/Accounting Purposes for their End of Year Process Please insure that you do this on the last day of your fiscal period. This data cannot be recaptured once you have entered Accounting in the new Fiscal Year. Payables Carrier Producer Broker Tax Vendor Aging Reports Client Financing Broker General Ledger reports Trial Balance, Balance Sheet, Profit and Loss Statement and General Ledger Detail can be printed for any period at any time. Uncommitted Items Cash Receipts Navigation: Accounting Module > Cash Receipts List of Open Cash Receipts will display by clicking in the Current Deposits Field Review the cash receipt and then either Save and Commit / or Delete entire deposit Uncommitted Items Manual Journal Entries Navigation: Accounting Module > Journal Entries> Manual Journal Entries List of open items will appear in the lister Review the entry and either Commit/Post or Delete Page 19 of 22 Procedure and Tips & Tricks for End of Year Process December 2013

20 Uncommitted Items Disbursements/Checks Navigation: Accounting Module > Disbursements > Add/Edit Check List of open items will appear in the lister Review the entry and either Commit/Print Check, Commit/Spool Check or Delete Uncommitted Items Invoices Navigation: Reports> Accounting>Invoicing> Incomplete Invoice Log Complete the necessary details and Select Display/Print Report Page 20 of 22 Procedure and Tips & Tricks for End of Year Process December 2013

21 You will be presented with the list of invoices that are open Option 1 o o o You can click on Invoice Details and the invoice will appear User can review and then decide to Commit and Save Invoice or to Cancel the Master Invoice, if not required Once the above has been done, right click and Select Refresh to see balance of outstanding items Page 21 of 22 Procedure and Tips & Tricks for End of Year Process December 2013

22 o There maybe some invoices that you will have to review via the client/policy modules Ex: Missing Billing carrier Option 2 o o o List can be printed and circulated to members of the staff Invoice can be accessed from the client or policy side User can review and then decide to Commit and Save Invoice or to Cancel the Master Invoice, if not required Page 22 of 22 Procedure and Tips & Tricks for End of Year Process December 2013