General Ledger Yearly Procedures

This procedure allows you to complete yearly tasks in General Ledger.

 

Until the General Ledger has been closed, you may not begin any activity for the new year for Accounts Payable, General Ledger, or Fixed Assets.  Activity for Billing can be done for the new year up until the first fiscal month is closed if the Sales Analysis General Ledger Interface is set up.  Accounts Receivable (Cash Posting) can be done for the new year prior to the closing of the General Ledger if the interface is not set up or is turned off.

 

If you are using the Payroll Interface to the General Ledger, be sure that the last payroll of the fiscal year is completed and posted.  If you are ready to post the first payroll of the new year and you have not closed the General Ledger, you have to change the interface switch in Payroll to no.  You will have to manually post the payrolls, or you could run the Final Registers for each payroll that was not posted after running the APGLEOY program.  If you plan on posting later, you need to first discuss this with LMS Support.

  1. Perform the normal end-of-month procedures for the General Ledger for the last fiscal month of the fiscal year.  This should include the reconciliation of the General Ledger accounts (i.e. Accounts Payable, Accounts Receivable, Inventory, Cash, System Wash, etc).

  2. The following reports should be run for the fiscal year. Note: These reports can be run after completing the end-of-year procedure.  This allows you to do journal entries after closing the year and run the reports only once.

  3. Perform an end-of-year backup of the data files.  This can be the previous night’s end-of-day backup if no General Ledger or Accounts Payable activity has occurred since the backup was done.  Otherwise, a manual backup of all data files should be done.  (There is no procedure to backup just Accounts Payable and General Ledger files).

  4. For this step, no one can be in the Accounts Payable or General Ledger menus, in Cash Posting, or running the Final Payroll Register & G/L Posting Report (regardless of whether the interfaces are being used).  This procedure copies the existing General Ledger data into a new file with the year of the data as part of the file name.  It then copies the net changes for the year that is being closed into last year fields for the current chart.  All General Ledger accounts are zeroed out for the new year.  THIS PROCEDURE DOES NOT CREATE OPENING BALANCES FOR THE NEW YEAR.

  5. This step is to verify that the procedures have been completed properly.

 

Additional Information

 

Opening Balance

The end-of-year program clears all General Ledger accounts of balances.  Because of this, opening balances have to be entered for the new year.  This can be done anytime after the closing of the year.  You may begin working in Accounts Payable and General Ledger with out having opening balances for the accounts.  The program to enter these balances is Entering Opening Balances (GL-1-2).  The entries should be entered with a transaction date of the first day of the fiscal year.

 

Journal Entries for the Previous Year

You may make journal entries into the previous year.  The following procedures should be followed.

 

Log into the General Ledger Entries program (GL-1-1)

 

Enter a transaction date which corresponds with the month and year of the journal entry.  At the prompt Current Fiscal Year?  (Y/N/E), input N for no.  The prompt Enter Fiscal Year appears.  Enter the last two digits of the year of the journal entries (i.e., enter 92 for 1992).

 

The prompt Update Current Chart Of Accounts Last Year Figures (Y/N) Y is displayed with the default of Y for yes.  A Y for yes must be entered if you want to update last year’s figures in the current year’s chart of accounts.  (Carriage return is not allowed.)  The only time that N for no should be input is when a journal entry is being made for a fiscal year previous to the last fiscal year.  For example, the current year is 1994.  The last year files are 1993 or stored as 93.  You want to make a journal entry into 1990.  If you answered Yes to this prompt, the system would update the 1993 figures in the 1994 chart of accounts.

 

Reports that can be run for previous years

The General Ledger reports, except Sales Distribution (GL-4-11), can be run after the end-of-year procedure is completed.

 

Please call La Crosse Management Systems, Inc. if you have any questions.  We appreciate your calls.  (608) 784-8400.