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Trial balance

Close a posting period to the next year

  • The chart of accounts and trial balance must be in balance before you can close to the next year.
  • You must have at least 1 equity account classification code to close the fiscal year.
You can use the
Year End Close
 screen to specify how the application should update budgets for the new year, to choose closing options, and to specify the distribution of net income and balance sheet accounts.
Closing a year prevents adjustments during that period. Select a client, then follow these instructions.
note
  • The first
    Year End Close
     screen opens automatically when you select (from the
    Change Posting Period
     screen) a period end date that's in the next year.
  • If the
    Zero account balances
     checkbox isn't marked in the first
    Year End Close
     screen, the application opens a subsequent
    Year End Close
     screen when you select
    OK
    .
  • Although you can't select a default closing account, the application does save year-end close distributions each year.
  1. Select
    Actions
    , then
    Change Posting Period
    .
  2. Select the year after your client's current processing period.
  3. Select the next posting period.
  4. Select
    OK
    .
    note
    If there was no activity for the client in the current year, the application automatically advances to the next year without opening any other windows.
  5. Set up the budget for the next posting period and make changes to closing options if you need them.
    • Mark the
      Carry forward tickmarks
       checkbox to have the application copy all tickmarks associated with a general ledger account within the source period to the destination period. If you have worked in the destination period at any time, this checkbox is grayed out and unavailable.
    • Mark the
      Carry forward WP references
       checkbox to have the application copy all workpapers references that were added to the Trial Balance WP reference column. You can use the
      View Maintenance
       screen to add this column to the trial balance. Note that the first time you move the period, the application prompts you to choose whether or not to carry forward WP references. To maintain consistency in the client data, the same selection is applied automatically—and the option becomes unavailable (grayed)—when you move to a prior period and then back again.
    • Mark the
      Zero account balances
       checkbox to reset the beginning balances for all balance sheet accounts (CA, CL, NPE, EQ, NCA, LTL) to 0 for the next year. You shouldn't mark this option if you perform bank account reconciliations for this client.
    • Mark the
      Close accounts by individual segments
       checkbox to close the year by account segment rather than by core account. This enables you to distribute net income by primary account segment during the year end close process.
  6. Select
    OK
    .
  7. Use the net income distributions grid to distribute net income to the proper equity accounts. If you selected to close accounts by individual segments, be sure to select the appropriate accounts for each primary segment code to distribute each portion of net income separately.
    note
    • The sum of the amounts in the Amount column must equal the full net income amount. As you enter amounts or percentages in the grid, the application updates the amounts in the
      Total
      ,
      Net Income
      , and
      Difference
       fields. You can select
      Recalculate Amounts
       at any time to recalculate the amounts in the net income distributions grid.
    • You must have at least one equity account classification code to close the Fiscal Year. You can add a new account on the fly by right-clicking the
      Account
       field, or you can edit an existing account in the
      Chart of Accounts
       screen.
    • Only equity accounts (those with a classification code of EQ assigned to it) are included in the dropdown in the Account column.
  8. Use the balance sheet accounts distributions grid to close balance sheet accounts from one account to another. The dropdown in the From Account and To Account columns include all Asset (CA, NPE, and NCA), Liability (CL and LTL), and Equity (EQ) accounts.
  9. Select
    OK
    .

This article applies to:

  • PRODUCT: Accounting CS
  • Subject: Budget,Clients,Posting periods

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