The following is a checklist
of steps. If you need detailed instructions on any of the steps below,
please contact us at 901-382-1634.
During the year-end closing routine, all the records that will be moved
are put in a temporary table before they are moved to the GL30000 table.
You must have free disk space that is equal to the size of the GL20000
table to perform the routine.
Note: To print this page,
highlight the text, go to File | Print, and choose selection
in the page range box.
1) Compete the posting procedure and the closing procedure (in the
following order) for
Inventory, Receivables, Payables, and Fixed Assets, if applicable.
NOTE: Year-end procedures
for Payroll are only performed at the end of the calendar year.
2) Post the final adjusting entries in the
General Ledger module. If you must make any
adjusting entries to allocate revenue, expenses, or depreciation to the
year that you are closing, use the Transaction Entry window or the Quick
Journal Entry window. If you wish to track your adjustments separately,
use the Second Closing Period feature.
3) Use SmartList to verify the posting type of each account. Go to
View | SmartList | Accounts. By default, only
the first 1,000 accounts will be displayed. If you have more than 1,000
accounts, double click on the box at the bottom where it says "First
1,000 accounts with no search criteria" and increase the maximum records
(in red at bottom). Click the header of the Posting Type column to sort
by posting type. Scroll down to the change from Balance Sheet to Profit
and Loss. Verify that the last Balance Sheet and the first Profit and
Loss accounts are correct. Note that Great Plains treats all unit and
allocation accounts as Balance Sheet, but the category will be zero.
to Reports | Financial | Accounts. Select All
Accounts, then New. Type "all accounts" in the option field.
If you are using 8.0 or later, put a check in the Inactive Accounts box.
Select Destination | OK | Print. If you want to
bring the balance forward, the account should be designated as Balance
Sheet; if you prefer to close to a retained earnings account, the
posting type must be set to Profit and Loss. You can make changes in the
Account Maintenance window.
5) Close the last period of the
fiscal year (optional). Use the Fiscal Periods Setup window. If you use
FRx, keep one period in the most recent historical year open.
6) Perform file maintenance on the Financial
Series group of modules. Go to File | Maintenance | Checklinks. Insert
all of the financial series. Print the report to the screen. Go to
Tools | Utilities | Financial | Reconcile. Reconcile the year you
7) Verify the setup in the General ledger
setup window. If
you want to keep historical records, you must click to select the
Accounts check box and the
Transactions check box in the
Maintain History area of the
General Ledger Setup window.
8) Make a backup. (Go to File | Backup).
9) Print a final detailed trial balance.
10) Print any required year-end financial statements,
e.g. balance sheet, profit and loss statement, statement of cash flows,
and statement of retained earnings.
11) Set up a new fiscal year using the
Fiscal Periods Setup window. Go to Tools | Setup |
Company | Fiscal Periods.
12) Close the fiscal year. Click Tools
| Routines | Financial | Year-End Closing. Specify
an account in the Retained Earnings Account field (this account is where
the year's profit or loss is closed to; if you want
to distribute the retained earnings for the year to more than one
account, you can specify an allocation account or
a specific account
the number that you want to use as the first journal entry number for
the next fiscal year in the Starting Journal
Year to start the routine.
If the progress window hangs at 50%,
don't reboot. It may take some time for it to close each account to
retained earnings. As long as your hard drive is processing, let it
When the year-end closing routine is
complete, the Year-End Closing Report is printed. This report lists the
accounts that were closed and the transactions that were created to
close those accounts. The Year-End Closing Report is part of the audit
trail; save it for your company's permanent records. The Year-End
Closing Report cannot be reprinted.
13) Close all fiscal periods for all series
using the Fiscal Periods Setup window (optional).
14) Adjust budget figures for the new year
and print financial statements. You can adjust your budget using
Excel-Base Budgeting, Budget Maintenance, or Single-Account Budget
Maintenance. Print the Profit and Loss Statement to verify that profit
and loss accounts were closed to the retained earnings account. Print
the Balance Sheet to verify that balance sheet accounts indicate that
the balances were brought forward. If you are using Advanced Financial
Analysis to print your financial statements, you must update the report
layout to reflect the current fiscal year. Click Reports |
Financial | Advanced Financial. Select the financial
statement from the Reports list | Open | Layout.
Double-click the first column heading. If the column type is set to
Period Range, Year-to-Date, or Variable Year-to-Date, select the current
fiscal year in the Year list | OK. Repeat for each column of each
15) Make a backup of all company data and
put it in safe permanent storage.