Before you begin your year-end procedures, be sure to take a look at our list of hints and tricks.
BACKUP YOUR ENTIRE DATABASE The main OGsql directory, programs, control files, and data should be backed up prior to the year-end close. The importance of backups cannot be stressed enough. This is a backup that should be kept permanently. Do not reuse this tape/CD/DVD. In the future you may wish to restore this data and run reports to see detail that is prior to the detail period specified for your G/L. Test your backup to make sure that it is good.
CONSIDER CREATING A DATABASE COPY This would create a snapshot of your database as it exists right now. This new database would be accessible within OGsql. The copy should NOT replace your year-end backup described above.
CHECK YOUR FIXED ACCOUNTS Before closing your G/L for the first year-end close, make sure that the fixed accounts are correct. OGsys will close all the accounts with an account number higher than the first P&L account to Retained Earnings. Be sure that all asset and liability accounts fall before the first P&L in the chart of accounts list.
If you are a partnership, make sure that you are using separate accounts for the Capital, Contributions, Distributions, and Retained Earnings accounts. Incorrect balances for the owners may result from using the same account for the various capital fixed accounts.
CHECK YOUR RETENTION PERIODS Before closing you G/L for the year, make sure the retention periods specified in Company Maintenance (company specific) and System Parameter Maintenance (database wide) are appropriate.
CLOSE THE YEAR - When you set up your company in Company Maintenance, you set the month of your company's fiscal year end. There are no special procedures necessary for the Year-End Close. When you perform the Month-End close, OGsys will note that the fiscal year end month and the processing month are the same, and close the P&L accounts to Retained Earnings. No action is required on your part. The zero balances for the P & L accounts and the change in Retained Earnings will be reflected in the beginning balance for the next year. The December balances for your accounts will be unaltered.
Do not leave your year-end open. When the majority of your December (or fiscal year-end month) monthly processing is finished, you should close December (or fiscal year-end month). Any forgotten entries or adjusting entries may be made later and December may be re-closed.
YEAR-END REPORTS TO RETAIN & RECONCILE
All of the normal month-end reports should be retained. Rather than printing out the reports suggested below you can print the reports to HOLD and archive the reports in a separate directory on your hard drive (not in the Print Queue or Output Manager). These reports can then be retrieved in Word or Excel programs for viewing or printing.
GENERAL LEDGER - DETAIL G/L REPORT 210 FOR THE ENTIRE FISCAL YEAR
ACCOUNTS PAYABLE – Accounts Payable Detail Listing (report 340-02) for the entire year for all vendors, all A/P invoice types (paid and unpaid), filtering on Transaction Dates and Payment Dates from the beginning of the calendar year through the end of the calendar year.
ACCOUNTS RECEIVABLE – Aged Accounts Receivable Listing (report 640) including recently paid invoices, for last 6 months of the year (maximum # of columns available). This report should be produced and retained monthly so you may not need an additional copy.
RECONCILIATIONS OF SUBLEDGERS TO THE G/L - Especially if you are audited annually, you will also need the following reports to show the detail of outstanding balances at year-end: JIB Prelist, A/P Check Prelist, Revenue Check Prelist, and A/R Detail Aging. The reconciliation of these subledger reports to the General Ledger is a current reconciliation that cannot be replicated at a later date.
If you have questions regarding these tips or other year-end questions, please contact us at firstname.lastname@example.org.