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Last modified on 9/21/2015 9:56 PM by User.

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G/L, Archive, Company

G/L Archive Company

Before we tell you what the G/L Archive Company is, we will explain a few things.

 

Close G/L at year end:

When you close the General Ledger (Module 4), System management functions (Task 32), Close G/L at year end (Sub-task 1):

  • It takes all of the individual debit & credit transactions from YTD Master (Task 20), for the income statement accounts, (number’s 500-00-xx through 999-99-xx), & deletes/closes them.  It compresses the balance of all of these accounts into one transaction & puts it into the retained earnings account. 
  • The balance sheet accounts (number’s 100-00-xx through 499-99-xx) it puts just one transaction for each account as a balance brought forward.
  • When you close one year it only keeps a copy one previous year’s transactions, so you can re-open one previous year.  Once you close the G/L year you can re-open one previous year.  You can’t re-open year after year after year.

 

EXAMPLE: You are ready to print the income statement for January 2013.  Before you do that you close the year ending December 31, 2012.  When the Close G/L at year end is finished all of the income statements accounts have no transactions at all.  The total of all of the income statement debits & credits for the year is put into the retained earnings G/L account with a date of 12/31/12.  Each balance sheet account will only have one transaction, which is a balance brought forward dated 12/31/12 which is the total of the account at the end of 12/31/12.  Now continue with the normal monthly G/L procedures for January 2013.

 

Why close the G/L at year end?

In this example, if the 2012 year is left open when the January 2013 income statement is printed, the YTD column will include all of 2012.   If the income statement format includes YTD & prior year, the prior year will be 2011, not 2012.

 

 

Re-open last year’s G/L

  • Most of the time the G/L year end closing is done prior to the first month of the new year income statement, just as the example.  Usually an outside accountant needs to analyze the G/L data.  At some point year end adjustments for the year closed will need to be posted.  The prior year will need to be re-opened before entering & posting the prior year end adjustments.
  • General Ledger (Module 4), System management functions (Task 32), Re-open last year’s G/L (Sub-task 16). 
  • When you re-open the previous year, it puts back all of the previous year debit & credit individual transactions into the YTD Master. 
  • The year end adjustments are entered & posted.  New Income statement, balance sheet, G/L trial balance report are printed & saved.  The year is closed again. 
  • When you close one year it only keeps a copy one previous year’s transactions, so you can re-open it.  You can only re-open one previous year.  So in the example you are in 2013, you can re-open 2012.  You can’t then re-open 2011.  

     

G/L ARCHIVE COMPANY

  • The G/L archive company is a separate company for G/L archive only.
  • It is up to you to contact us, to request we create the G/L archive company before you close the G/L year end.
  • The G/L archive company is not on everyone’s terminal.  It is on only the user/terminals you specify, usually the controller, accountant, owner, etc…
  • The G/L archive company must be created before the G/L year end close.  In the example, before the 2012 G/L close year end is completed, the 2011 G/L archive company MUST be created.  Once the 2012 G/L close is completed, the 2011 G/L transactions are gone & you can’t get them back unless you go to a backup.
    • The individual A/R, A/P & P/R files for previous years should still be in those modules, i.e. sales history, cash history, voucher history, employee check history.
  • The G/L archive company is only for printing financial statements & for G/L trial balance.  You will be able to see or print all of the individual debit & credit transactions for the whole year. 
  • Posting in the G/L archive company shouldn’t be done.  G/L figures are rolling figures.  If a G/L transaction is posted in 2011, it affects the balances in accounts for 2012 & forward.
  • If we started creating the G/L Archive company in 2009, you would have on specified terminals, on the main menu:
    • 1. Live company
    • 2. 2009 G/L Archive
    • 3. 2010 G/L Archive
    • 4. 2011 G/L Archive

 

NOTE: Contact us to discuss the G/L Archive company.