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General Ledger Prior Year (GL) Year End Processing Checklist

The General Ledger Prior Year System allows you to run concurrent fiscal years until the prior year has been closed. Financial reports may be printed for either the current or prior year. Adjusting entries may be made to the prior year and the balances for the new year can be updated to reflect the adjusting entries.

The actual close of the prior year will be done through the PRIOR YEAR PROCESSING menu using the files copied into DATVOL90. The system will calculate the ending balances for the Prior Year and post them to the beginning balances for the Current Year. The GL files in the prior year data volume are identical. However, the menu selections for Prior Year Processing are limited to those functions that are pertinent to closing the year.

Warning: Before starting this process, complete all work in Rental, Accounts Receivable, Accounts Payable and Fixed Assets for the fiscal year ending. Once the first step of the General Ledger Prior Year (GL) Year End Processing is completed, the subsidiary systems will not be able to post directly to the Prior Year. Most often, Rental and Accounts Receivable work is completed on or very near to the end of the fiscal year. However, sometimes Accounts Payable and Fixed Assets are held open awaiting information. While Accounts Payable and Fixed Assets are open for the fiscal year ending, entries may be posted into the new fiscal year but do not post those entries until Accounts Payable and Fixed Assets have been closed for the fiscal year ending and the first step of the General Ledger Prior Year (GL) Year End Processing is completed.

Set Year End In Process Flag
As you start using period 12, set the YEAR END FLAG in the Company Record screen to "1" or say "YES" to the prompt in the Enter Transactions screen:

"WANT TO SET YEAR END IN PROGRESS FLAG?"

By setting the YEAR END FLAG and initializing GL period 1, the system will allow you to begin posting applications into period 1 for the new year, but will prevent you from posting the period 1 journal against the GL account balances for the prior year until the prior year data has been moved into the Prior Year volume.

When you have finished posting to period 12, you may proceed with the PRIOR YEAR PROCESSING menu. The first step of the Prior Year Processing, COPY CURRENT TO PRIOR, will clear the YEAR END FLAG so you will be able to post period 1 against the GL account balances for the new year.

Be sure that all existing journals for period 12 (or any prior period) are posted.

First Time Prior Year End Process
If General Ledger has been closed using the Prior Year Method before, skip this step and proceed to the next.

Otherwise, if this is the first time Prior Year has been processed, the following screen will appear

GL END OF YEAR STARTUP - FIRST TIME

This is the first time the Prior Year is being done. The system will automatically setup the TABLE and GLREPTCN file so that the GL functions can operate.

DO YOU WANT TO CONTINUE (Y/N)? :

Enter "Y" and the system displays the following messages:

COPY GLREPTCN FILE TO PRIOR YEAR VOLUME
COPY TABLE FILE TO PRIOR YEAR VOLUME

Enter "N" to exit this function without copying the files.

The General Ledger prior year main menu displays if prior year data volume is setup properly.

NOTE (Windows systems only): The next step will use records in the TABLE file. If you get a BAD READ on the TABLE file for the STORE record when you try to start the next step, exit the rental application and use Windows Explorer to copy the TABLE file from the store where the General Ledger files are to the Prior Year volume. If you get any errors while trying to copy in the explorer, you will need to have everyone else exit from the rental application as well. A file may not be copied in DOS/Windows if anyone else has it open.

Copy Current to Prior Year

This procedure:

Copies selected GL files and the GL passwords to the prior year data volume, DATVOL90.
Initializes the file that was used for period 12.
Zeros the new year account balances and all period balances in preparation for next step which will calculate the beginning balances for the new year.
Initializes the GL history activity (GLHIST) file for the new year.
Clears the YEAR END FLAG in the Company Record so you can post the period 1 journal against the GL accounts.
Lists each step as it is done.
Provides a restart in the event of a fatal error.
Automatically runs the Calculate Beginning Balances program.

To copy Current to Prior Year

Select YEAR END PROCESSING
Select COPY CURRENT TO PRIOR

Calculate Beginning Balances (for the new year)
This function uses the prior year GL master file in DATVOL90 to calculate the retained earnings for the prior year and calculate the beginning balances for the asset, liability and equity accounts. The beginning balances, including retained earnings, are posted to the GLMASTER file in the current year data volume (e.g. in DATVOL01). Prior Year account data is copied to the "H" (history) records in the Current GLMASTER file.

This function may be run as many times as necessary before actually closing the prior year.

Since this function calculates Retained Earnings, it is critical that the CLEAR-TO account for each income and expense account is coded with the account# of the Retained Earnings account. Step number is ignored in Prior Year Processing.

To Calculate Beginning Balances

Select YEAR END PROCESSING
Select CALC BEGINNING BALANCES

Possible error messages

If an account does not exist in the current year file (GLMASTER), the record will be added and the following message will print:

ACCOUNT xxxxxxxxxxxxxxx CREATED IN CURRENT GLMASTER

Initialize GL Journal Period
Period 13 must be initialized. This period is used for adjusting and closing entries for the fiscal year.

NOTE: Period 12 may be used if you prefer. If you use period 12 instead of period 13, substitute period 12 for period 13 in each following step)

To Initialize GL Period

Select YEAR END PROCESSING
Select PRIOR YEAR-MAIN FUNCTION
Select INITIALIZE JOURNAL FILES

Start Journal Period: 13
Ending Journal Period: 13

Do You Want To Continue? (Yes/No): Y
Are You Sure? (Yes/No): Y

When complete, the message

Successful End of Initialize

will display.

The following 3 steps may be run more than once if you receive your adjusting entries from your accountant all at once or some at a time.
Continue to repeat these steps until your accountant indicates that you have all the adjusting entries completed.

Make Prior Year Adjusting Entries
Journal entries are made the same way as they are made in the normal process.

Select YEAR END PROCESSING
Select ENTER TRANSACTIONS (OR EDIT JOURNAL FUNCTIONS if making corrections)

List Adjusting Entries
This function provides the user with a list of the entries about to be posted. Selections are the same as the normal process.

Select YEAR END PROCESSING
Select LIST JOURNAL TRANSACTIONS

Post Adjusting Entries
Selections are the same as the normal process.

Select YEAR END PROCESSING
Select POST TRANSACTIONS

Print Trial Balance

Select YEAR END PROCESSING
Select PRINT TRIAL BALANCE

Select period 13 to be printed.

Print Income Statement

Select YEAR END PROCESSING
Select INCOME STATEMENT

Select from period 13 to period 13. If multiple formats are required, print all now.

Print Balance Sheet

Select YEAR END PROCESSING
Select BALANCE SHEET

Select from period 1 to period 13. If multiple formats are required, print all now.

Print GL Activity History
This report could be quite long. It is a listing of all the journal transactions from the entire year in period then date order for each account. This step must be completed before continuing to the CLOSE PRIOR YEAR.

Select YEAR END PROCESSING
Select ACTIVITY HISTORY REPORT

Select all journal codes, all GL periods, and all GL Accounts by pressing ENTER at each selection. Displaying period subtotals will make the report longer but will assist with deciphering the report later if necessary. You should include zero balance accounts to ensure that the account existed during this fiscal year but you may exclude zero activity lines. These selections may be altered to fit your needs but these are the standard suggested selections.

Print Financial Statement (skip this step if not set up for Multi-tiered GL)

Select YEAR END PROCESSING
Select FINANCIAL STATEMENT

Select from period 1 to period 13. If multiple formats are required, print all now.

Process Year End

When the final adjustments have been made to the prior year and your accountant is happy with the final income statement and balance sheet, run the Close Prior Year to copy the final beginning balances to the current year, copy the prior year account data to the "H" (history) records in the current GLMASTER file and set the flag in the GL Control Record to show the prior year is officially closed.

Run Close Prior Year

Select YEAR END PROCESSING
Select CLOSE PRIOR YEAR