Year End Procedure

Year End Procedure – Dealership

1.     Set up your Fiscal Calendar.  This should be completed within the two months prior to your Year End.

From the top menu bar, select [Finance], [General Ledger], [Administration], [GL Year End], and then [GL Fiscal Year].

• Click on New Year. The Fiscal Calendar will generate automatically.
• Make any desired changes to the fiscal calendar.
• Press Submit.

NOTE:  

1. Do not include the closing period in your calendar.
2. Enter your dates in alpha format (i.e. 1 Mar 2010).
3. You will not see the new fiscal calendar in the GL Inquiry until you do the initial close.

2.     Check that the retained earnings account is correct.  

From the top menu bar, select [System Admin], [Parameters], [Ret. Earnings].

·      Check that the General Ledger account number shown is the retained earnings account.

·      If there is no account number or if the account number is incorrect, click on GL Account Number and select the correct account number from the list.

·      The retained earnings account must be a liability type account.

3.     Perform your Initial Close.  The Initial Close creates a place for the new year’s transactions to post and closes the Income and Expense accounts.  All profit from the old year is posted to the Retained Earnings account (i.e. generates a closing transaction). The Initial Close can be done any time in the last month of your current Fiscal Year, but it is ideally done at the end of the month.  

From the top menu bar, select [Finance], [General Ledger], [Administration], [GL Year End], and then [Initial Close].

• The Current Fiscal Year and the Last Fiscal Year (Open) are displayed.
• If a GL year sequence number and fiscal year description are displayed next to Last Fiscal Year (Open), you must run the Final Close for this year before you can continue with the Initial Close.  See step 8 in this document for more information about the Final Close.
• The number of Unposted Transactions is displayed.  This number should be ‘0’.  You can click on Unposted Transactions to view details of any unposted transactions.
• Once you have posted any unposted transactions, click Submit to perform your Initial Close.
  
  

NOTE: After you have performed your Initial Close, any adjustments you make to the  old year automatically generate closing transactions in the closing (CLO)  fiscal period.  

As per your normal month end procedure, be sure to advance your Current Fiscals.  From the top menu bar, select [System Admin]. [Parameters] and click [Current Fiscals]. 

4.     Complete your Physical Inventory (see Physical Inventory Procedure document for details).

5.     Run a Parts Inventory valuation report.  This report should be run after you have posted your physical inventory counts and before any activity for the new year.  The report shows your parts inventory with on-hand quantities and extended costs.  If you have more than one General Ledger Parts Inventory account for each store, run a separate report for each part class.  Give this report to your accountant.

From the top menu bar, select [Inventory], [Parts], [Reports], [Listings], [Std. Products].

6.     Adjust the General Ledger Parts Inventory account(s) balance(s).

The Post Inventory Counts step of the physical inventory procedure creates a GL transaction for the cost difference between the old quantities and the new quantities.  However, part cost changes throughout the year may not be reflected in the General Ledger Parts Inventory account balance.  

If your store is not configured to update the General Ledger from Purchase Order receipts, subtract the cost of any parts received (and included in your physical inventory) for which you haven’t entered an Accounts Payable invoice, from the total on the year-end Parts Inventory listing.  Do a manual journal entry to adjust your General Ledger Parts Inventory account balance to match this amount.

If your store is configured to update the General Ledger from Purchase Order receipts, do a manual journal entry to adjust your General Ledger Parts Inventory account balance to match the total on the year-end Parts Inventory listing.

7.     Run a Unit Inventory valuation report.  This report should be run after you have finalized all unit sales and entered all unit costs for the old year and before finalizing any unit sales or entering any unit costs for the new year.  The totals on this report should be the same as the General Ledger Unit Inventory accounts’ year end balances.  Give this report to your accountant.

From the top menu bar, select [Inventory], [Units], [Reports], [Unit Inventory].

• Select the In Stock and Initialized Sale Statuses.  If there are units in your inventory that have other statuses, select those statuses also.
• Click the Display Costs button.
• Click the Include only Closed WO’s in Cost button. 

8.     Perform your Final Close.  This is often done months after the Initial Close when your accountant has completed everything for the year.  After you perform the Final Close, you cannot make any more adjustments to that year.

From the top menu bar, select [Finance], [General Ledger], [Administration], [GL Year End], and then [Final Close].

• The Current Fiscal Year and the Last Fiscal Year (Open) are displayed.
• The number of Unposted Transactions is displayed.  This number should be ‘0’.  You can click on Unposted Transactions to view details of any Unposted Transactions.
• Once you have posted any Unposted Transactions, click Submit to perform your Final Close.

9.     Your Year End Procedure is now complete.