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Last modified on 2/23/2016 3:14 PM by User.

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Change, G/L, GL, General, Ledger, accounting, Periods, Open, Close

Change G/L Accounting Periods

On occasion a business must change its accounting periods (i.e. a corporate buy-out). Following are the basic steps that must be taken to accomplish this task. 

1. Re-open the old G/L year

2. Change the accounting periods to the new structure.

3. Re-close the old G/L year using the year-ending date from the new periods.

4. Do a late year-end in A/R and A/P

 

The months and years used will apply to your specific situation, but for the sake of explanation a scenario will be presented below so that years/dates can be followed and then substituted with your dates.

 

It is May 2015 and Company A is bought out and need to change their fiscal year to end on December 31st.  They have not closed their fiscal year 2014, which ends on March 31, 2014.  However, fiscal year 2013 (ending March 31, 2013) has already been closed.  The steps that follow begin with changing the fiscal year-end to be December, 2013.  

 

Step 1:  Re-open G/L for the old year 2013 (April 1, 2013 thru March 31, 2014).  Go to:

  • General Ledger Menu
    • System Management Systems (Task 32)
      • Re-open  Last Year's G/L (Sub-task 16)

 

Step 2:  Change period dates to January 2013 through December 2013.  Go to:

  • General Ledger Menu
    • System Management Systems (Task 32)
      • Setup Accounting Periods (Sub-task 7)
        • Reset all Periods for all Years. (Sub-task 3)

 

Step 3:  Close G/L year with Year-End date of 12/31/13.   Go to:

  • General Ledger Menu
    • System Management Systems (Task 32)
      • Close G/L at Year End (Sub-task 1)

 

Step 4:  (Optional) Print another set of financial statements for 12/31/13

 

Step 5:  Close G/L year, again, with Year-End date of 12/31/14 if you are currently in Fiscal Year 2015.  Prior figures for year 2014 will be complete 12 months.  Go to:

  • General Ledger Menu
    • System Management Systems (Task 32)
      • Close G/L at Year End (Sub-task 1)

 

  • Accounts Receivable  Menu
    • System Management Systems (Task 32)
      • Correct Late Year-end Processing (Sub-task 6)

 

  • Accounts Payable Menu
    • System Management Systems (Task 32)
      • Correct late year-end closing (Sub-task 8)

 

Step 8:  Process is complete and ready for postings for Fiscal Year-End December 31, 2015.

 

Note:  The new retained earnings will be different because it is based on a different set of months than the old retained earnings.  What is lost in Prior year retained earnings is made up in the current YTD income, so the next affect is zero.

Also Note: If you have trouble with any of the above steps please contact us for assistance.