Year
End Processing
Program/Screen: GLYEPT/GLYEPT10
Description:
Before running this
program, ensure that no one is using the general ledger master and
detail files and that you have run the YRENDC job. See the Year End Flow topic for more information.
Use this program to perform an accounting close of the previous year. You can do the close in steps by first processing an initial close that allows you to get back into the previous year to enter last-minute journal entries before you run the final close.
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Navigation
Enter or accept the retained earnings account, and then select the appropriate year-end processing option. The options are described in detail below.
Fields
Enter or accept the account that receives the offsetting income and expense balances for the year at final close. The revenue and expense account balances are reset to zero.
The default account for this field comes from the retained earnings account setting for your location as set up in Default System G/L Values.
Select this option after you have closed the last month/period in the fiscal year, and you have used the Budget Account Transfer program to move G/L account balances from account codeCode that represents the file that holds G/L account balances for this year, previous years, and budgets. 2 to one of the user defined account codes 4 through 9.
During initial close, the following takes place:
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Two General Ledger Data Libraries are established. One library is a copy of the accounting information for the year being closed, and it is called WSGLLYxx (xx is your company code). The second library maintains the accounts for the active (or current) accounting year.
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Account history records (account code 2) are deleted to prepare for the new year.
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Data under existing account code 1 is rolled over to become the account history file (account code 2) for the previous year, and account code 1 is initialized for the current year.
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Retained earnings and balance forward amounts are calculated.
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All month/accounting periods are opened for the new (current) year.
Activate/Deactivate Previous Year
Select this option if, after running the Initial Close, it is necessary to make accounting entries to the previous year. You can run this process multiple times before performing the year-end final close.
After
you activate the previous year, if you need to go into the control
records and open a month/period, ensure that you do so from the Additional G/L Options Menu, Option 82-System
Control File Maintenance. Do not type ctl
at the command line to make your changes, because that will impact
the current year’s records.
Activating the previous year allows you to make entries to the General Ledger Data Library for that year. When the previous year is activated, the main General Ledger menu has a highlighted PREVIOUS YEAR ACTIVE notice across the top, and the year is only activated from the one workstation from which the Activate previous year process was run. Access to the previous year should be deactivated when updates are not being performed.
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Interim Update
Select this option to integrate the data that was entered while the previous year was activated. You can run this process multiple times before performing the year-end final close.
Before
you perform this step, ensure that all month/accounting periods for
the previous year are closed, and deactivate the previous year by
logging off and then logging back in. Everyone needs to be out
of the general ledger until processing is complete.
During interim update, the following takes place:
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Balance forward and retained earnings amounts are recalculated from the previous year.
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The balance forward amounts for the current year are adjusted to reflect the new values from the previous year.
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Retained earnings for the current year are updated to reflect the new value from the previous year.
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The account history information (Account Code 2) for the current year is updated to match the adjusted data from the previous year.
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Both General Ledger Data Libraries remain on the system as separate entities to allow for future updates until final close is run.
Final Close
Select this option once all adjusting entries have been completed for the previous year. After you perform the final close, you can no longer activate the previous year.
In addition to integrating the most recent entries from the previous year into the current year, the final close deletes all information from the previous year’s General Ledger Data Library.
Before
you perform this step, ensure that all month/accounting periods for
the previous year are closed, and deactivate the previous year by
logging off and then logging back in. It is a good idea to run
an interim update one more time prior to performing the final close
to ensure that all adjustments are carried forward
When you run the final close, the following takes place:
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Final balance forward and retained earnings amounts are calculated from the previous year.
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The balance forward amounts for the current year are adjusted to incorporate the new values from the previous year.
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Retained earnings for the current year are updated to incorporate the new value from the previous year.
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The account history information (Account Code 2) for the current year is adjusted to reflect the final closing information of the previous year.
Function Keys
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Function Key |
Description |
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F1 |
Help. Place your cursor in a field and press F1 to access online help for that field. Place your cursor outside of any field, and press F1 to access online help at the program level. |
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F3 |
Exit. Exit the page or program. |
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F4 |
Search. Place your cursor in a searchable field and press F4 to access a lookup window or more advanced search screen. |
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F12 |
Cancel/Previous. Exit the program or move back a screen. |
Related Programs
Reset Depreciation at Year End
Special Topics
Year-End Processing white paper
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