At the end of each financial year, you must use the Year End command from Nominal > Utilities > Year End, to perform the following actions:
Transfer the period totals, both actual and budget, for the closing financial year as prior year period values for historical reporting purposes.
Clear account balances for profit and loss accounts.
Transfer or clear account balances for balance sheet accounts depending on your response to a question. If you choose to retain the balances of balance sheet accounts, the application creates an opening balance journal using the next journal number available for the new year.
Remove transactions older than the number of years specified in the Keep Transactions box on the Nominal Ledger – Set Options form.
Remove journal images older than the number of years specified in the Keep Journal Images box on the Nominal Ledger – Set Options form.
Post journals into the new financial year for transactions from other modules (Sales ledger, Purchase Ledger, Cashbook, Stock and Payroll modules) that have not yet been transferred to the Nominal Ledger. If the Year End finds any of these transactions this message is displayed asking you whether you want the transactions posted into the last period of the current year, or the first period of the next financial year.
The System Then Updates The Set Options In The Following Ways:
Update the balance of the profit and loss account nominated in the Profit & Loss box.
Move on the new financial year in the Current Year box.
Set the Current Period to ‘1’.
If you use the Open Period Accounting feature, you can set the status for all periods to ‘Closed’ to prevent any further transactions being posted to the current financial year. Further postings in the current year are blocked for these modules if you tick the Close All Periods for the Year Being Ended box:
The Following Happens After The Year End Is Run:
If future financial years exist in the Financial Calendar, new calendars are created. For example, if in 2016 there are two future financial calendars (for 2017 and 2018), when the year end is run 2017 becomes the current financial year and a new future year is created for 2018.
On the Financial Calendar form the status for each period in the new financial year is set to ‘Open’. This affects the Nominal Ledger, Sales Ledger, Purchase Ledger, Fixed Assets, Stock Control and Payroll modules. You can change the status to ‘Blocked’ for any module after the Year End process is completed.