AR Fiscal Year End - Late Closing

**A regular fiscal year-end procedure in both Accounts Payable and Accounts Receivable is to move the current year fields, in the Vendor and Customer Master Files, to the Prior year fields.

**This is accomplished by performing Fiscal Year-End Customer processing. When this is not done, the information in the Current Year will be made up of both current year and prior year figures.

**The clue most people have that the Fiscal year-end was not performed, is the current year sales figures in the Customer Master file are larger than they would expect, and they do not match other reports for the customer or that upcoming (future) months are not equal to zero (0).

**The following discusses how to correct the current year and prior year fields in the Customer Master files.

The following steps will move the current year figures to the prior year and set the correct figures in the current year fields.   The document explains two “Options” to accomplish this task. IF the figures look fairly reasonable (meaning that the current year figure looks like it is just the combination of last fiscal year and this fiscal year), then run the steps outlined in Option 1.  However, if the numbers are truly confusing or a fiscal year closing hasn’t been done for more than one year, then proceed to Option 2.   To be on the safe side, you can generally do Option 2 as long as you have at least a full prior year history. Only a new startup would have less.  Option 2 is also helpful if you have made any manual changes or merged customers and need to reflect that in the customer master records.

OPTION #1:  For this example, assume the fiscal year just ended was 01/01/09 – 12/31/09

Step 1: This moves the information in the Current Year fields to the Prior Year.

• Accounts Receivable (Module 2)
  • System Management (Task 32)
    • Fiscal Year End Customer Processing (Sub-task 2).
      • Screen 1:  This year-end procedure will do the following:
        • Roll customer file this-year sales to last-year sales.
        • Zero out this-year sales.
        • ​Advance the A/R fiscal year accounting periods.

      • Screen 2:  Are you POSITIVE you want to clear the current sales information? YES/No

      • Screen 3: The following message appears on the screen:

        • Accounting periods: Each module (A/R, A/P, G/L) has its own set of period dates so a year-end procedure in one module will not affect any other modules.  That means every module’s  year-end procedure includes this step to advance its own fiscal year.  The G/L (Module 4), System Management (Task 32), Setup Accounting Periods (Sub-task 7) contains the period dates for all modules.   Use that task for general maintenance.

        • Press ENTER to continue:  Enter key.

      • ​Screen 4:  Do you want to advance the A/R fiscal year to 2010? Y (Yes).   Then you will see: Please verify 2010 period dates on the next screen.

      • Screen 5:  This screen will display each month’s dates for the new fiscal year.   Take a look at the dates and if everything is OK, press the ENTER key to exit.  IF incorrect, go to the G/L module, Task 32, Sub-task 7 (Setup Accounting Periods) to correct the dates.

No report prints, nothing happens to the screen - the information in the “Monthly” and “YTD” fields in the customer file are transferred to the “Prior Year” field. The process also set “Current Year” to Zero.

Step 2.  This will recalculate the information needed for the Current Year fields.

• Accounts Receivable (Module 2)
  • System Management Functions (Task 32)
    • Correct Late Year End Processing (Sub-task 6)
      • NOTE: before beginning this process, READ the information on the screen carefully. Pay close attention to the information regarding the backup.
      • Screen 1: This program adds sale information from the sales history file to the monthly and year-to-date sales figures in the Customer Master file.  It optionally subtracts current year figures from the previous year figures….this is used if the year-end closing is performed after the end of the fiscal year and sales have been posted in the new fiscal year.    Do you wish to continue?  YES
      • Screen 2:  The display will read (per the example dates given):
        • The current 2010 fiscal year is from 01/01/10 to 12/31/10
        • Please enter - starting document date: - ending document date:
        • Based on the example, enter the CURRENT fiscal year dates. i.e. 01/01/10 and 12/31/10  *(remember, for the example the fiscal year that just ended was 01/01/09 – 12/31/09, therefore the CURRENT fiscal year is 01/01/10 – 12/31/10)

      • Screen 3: Do you wish to subtract current-year from prior-year [Y/N]? Yes.

 

OPTION #2: This corrects the sales information for the current and prior fiscal year dates.    For this example, assume the fiscal year just ended was 01/01/09 – 12/31/09

Note: when using Option 2, you must repeat the same processes a couple of time….once using the current fiscal year and the other time using prior fiscal year dates.  To avoid confusion, there is a checklist at the end of this document to help you keep track of what step has been done.

Step 1:  Set the correct dates.  Go to:

• General Ledger (Module 4)
  • System Management Functions (Task 32)
    • Setup Accounting Periods (Sub-task 7)
      • Box #1: Change years for a module.  The A/R module for this example should read 2009. 
        • ​If it does, press the left arrow key to leave the screen. 
        • If it doesn’t, type 1 at the “Any Change?” prompt. 
          • ​The cursor will go into the box; use the down arrow key to go to the A/R module selection. Select A/R by typing in a Y. 
          • The cursor will then go to the box on the right side of the screen which lists all of the fiscal years and dates.  Using the example date, you would select the year 2009 with a Y. 
          • Your cursor will go back to the previous box, showing A/R with a 2009 year.  Press the back arrow key to go down to “Any Change? 
          • Press the ENTER key and back out to the main module menu.

Step 2.  This moves the information in the Current Year fields to the Prior Year

• Accounts Receivable (Module 2)
  • System Management (Task 32)
    • ​Fiscal Year End Customer Processing (Sub-task 2).
      • ​Screen 1:  This year-end procedure will do the following:
        • ​Roll customer file this-year sales to last-year sales.

        • ​Zero out this-year sales.

        • Advance the A/R fiscal year accounting periods.

      • ​​Screen 2:  Are you POSITIVE you want to clear the current sales information? YES/No

      • Screen 3: The following message appears on the screen:

        • ​Accounting periods: Each module (A/R, A/P, G/L) has its own set of period dates so a year-end procedure in one module will not affect any other modules.  That means every module’s  year-end procedure includes this step to advance its own fiscal year.  The G/L (Module 4), System Management (Task 32), Setup Accounting Periods (Sub-task 7) contains the period dates for all modules.   Use that task for general maintenance.

        • Press ENTER to continue:  Enter key.

      • ​Screen 4:  Do you want to advance the A/R fiscal year to 2010? N (No).   The system will go back to the menu.

Step 3.   This will recalculate the information needed for the Current Year fields.

• Accounts Receivable (Module 2)
  • System Management Functions (Task 32)
    • Correct Late Year End Processing (Sub-task 6)
      • NOTE: before beginning this process, READ the information on the screen carefully. Pay close attention to the information regarding the backup.
      • Screen 1: This program adds sale information from the sales history file to the monthly and year-to-date sales figures in the Customer Master file.  It optionally subtracts current year figures from the previous year figures….this is used if the year-end closing is performed after the end of the fiscal year and sales have been posted in the new fiscal year.    Do you wish to continue?  YES
      • Screen 2:  The display will read (per the example dates given): 
        • The current 2009 fiscal year is from 01/01/09 to 12/31/09

        • ​Please enter - starting document date: - ending document date:

        • Based on the example, enter the PRIOR fiscal year dates. i.e. 01/01/019 and 12/31/09  *(remember, for the example the fiscal year that just ended was 01/01/09 – 12/31/09, therefore the PRIOE fiscal year is 01/01/09 – 12/31/09 and the CURRENT fiscal year is 01/01/10 – 12/31/10)

      • Screen 3: Do you wish to subtract current-year from prior-year [Y/N]? No.

The system does some calculating and will automatically go back to the menu.

Step 4:  This moves the information in the Current Year fields to the Prior Year fields, now go back to:

• Accounts Receivable (Module 2)
  • System Management Functions (Task 32)
    • Fiscal Year End Customer Processing (Sub-task 2)
      • Screen 1:  This year-end procedure will do the following:
        • Roll customer file this-year sales to last-year sales.
        • Zero out this-year sales.
        • Advance the A/R fiscal year accounting periods.

      • ​Screen 2:  Are you POSITIVE you want to clear the current sales information? YES/No

      • Screen 3: The following message appears on the screen: 

        • ​Accounting periods: Each module (A/R, A/P, G/L) has its own set of period dates so a year-end procedure in one module will not affect any other modules.  That means every module’s  year-end procedure includes this step to advance its own fiscal year.  The G/L (Module 4), System Management (Task 32), Setup Accounting Periods (Sub-task 7) contains the period dates for all modules.   Use that task for general maintenance.

        • Press ENTER to continue:  Enter key.

      • ​Screen 4:  Do you want to advance the A/R fiscal year to 2010? Y (Yes).   Then you will see: Please verify 2010 period dates on the next screen.

      • Screen 5:  This screen will display each month’s dates for the new fiscal year.   Take a look at the dates and if everything is OK, press the ENTER key to exit.  IF incorrect, go to the G/L module, Task 32, Sub-task 7 (Setup Accounting Periods) to correct the dates.

Step 5:  This will recalculate the information needed for the Current Year fields go back to:

• Accounts Receivable (Module 2)
  • System Management Functions (Task 32)
    • Correct Late Year End Processing (Sub-task 6)
      • NOTE: before beginning this process, READ the information on the screen carefully. Pay close attention to the information regarding the backup.
      • Screen 1: This program adds sale information from the sales history file to the monthly and year-to-date sales figures in the Customer Master file.  It optionally subtracts current year figures from the previous year figures….this is used if the year-end closing is performed after the end of the fiscal year and sales have been posted in the new fiscal year.    Do you wish to continue?  YES
      • Screen 2:  The display will read (per the example dates given):
        • The current 2010 fiscal year is from 01/01/10 to 12/31/10
        • Please enter - starting document date: - ending document date:
        • Based on the example, enter the CURRENT fiscal year dates. i.e. 01/01/10 and 12/31/10  *(remember, for the example the fiscal year that just ended was 01/01/09 – 12/31/09, therefore the CURRENT fiscal year is 01/01/10 – 12/31/10)

      • Screen 3: Do you wish to subtract current-year from prior-year [Y/N]? No.

Checklist for using Option #2:

G/L:

Step 1.______G/L Module; Task 32; Sub-task 7 (Setup Accounting Periods)

 

A/R, System Management Functions –Task 32):

Step 2.______Fiscal Year-end Cust Processing (Sub-task 2).  Answer YES to “Clear current year sales information” and NO to “Advance year”

Step 3.______Correct Late Year-end Processing (Sub-task 6).  Use previous years dates and NO to “Subtract current year from prior”

Step 4.______Fiscal Year-end Cust Processing (Sub-task 2). Answer YES to both “Clear current year sales information” and to “Advance year”

Step 5.______Correct Late Year-end Processing (Sub-task 6) Use current fiscal year dates and NO to “Subtract current year from prior”