Question:
General Ledger Year End

Answer:

General Ledger Year End

In General Ledger, the system maintains period balances by reading the transaction dates of the journal entries. Therefore, you don't have to close each period in General Ledger. The only period end processing you must do in General Ledger is done at the end of the year

Warning

Do the following to prepare for year end processing in General Ledger

1. Print a Trial Balance for each period of the fiscal year. Check it carefully to verify that each period is in balance, and that the account balances are correct.
2. Write down any necessary adjustments, noting the account to be adjusted, the amount, whether to debit or credit the account, and the reason for the entry
3. After you have identified any errors, enter an post the adjusting entries
4. Reprint the Trial Balance for the entire year and check it again.
5. After making all adjusting entries in General Ledger, you are ready to print reports. Reports must be printed before you process closing entries. Once you close the year, the report information will be lost.
6. Print a complete Audit Trail for all accounts for the entire year. Store this report in a safe place to verify the legitimacy of your financial statements.
7. Print you financial statements, including the Balance Sheet and an Income Statement.
8. Check the reports very carefully for accuracy. If the reports must be approved by someone else, get all necessary approvals before proceeding with year-end processing.
9. Make a permanent backup of your data files
10. If you are running your year end on a date different from the last date of the fiscal year, set the system date to the last day of the fiscal year by selecting Change Local Transaction Date from the Journal menu, and the Present Period to Period 12 (or the last period of the year) in the fiscal calendar.