Year-End Closing Entries

Month End > Year End Reset
 

The 14^th period holds the system-generated year-end closing entries for each account. YE closing entries are stored in a separate file from all other transactions for accounts. This allows us to run a report for an Annual figure and have the 12-month total shown (plus the 13th period if used). If these 14th-period transactions were not separated, the Annual total for every Rev/Exp type account would be zero. It is not a selectable period in the reporting from-to-period range. There is no entry or import to the YE file. These are generated only when physically running the Year End Reset.

 

Balance sheet accounts do not reset each year but roll forward.

 

If the fund setup is checked to clear revenue/expense, every revenue and expense account is closed out to start a new year. The balance at the end of the fiscal year is reversed out of the individual account, and the net of all the accounts is posted to each fund’s closing account.

 

Ex: At the end of 2019, $1,267.03 of expenses (debit) were in the staff apparel account below. The YE close created a credit amount to reset the account to zero for 2020. At the end of 2020, the YE close credited the $299.22 balance to start 2021.

 

 

The category setup controls which minor accounts are debits and credits. Typically, Revenue accounts carry a credit balance all year, and expense accounts have a debit balance. The 14^th period reverses each type accordingly.

 

 

The GL account listed on the Fund setup is the account into which the rev/exp will close for each fund.

 

 

You can find a YE batch number on any account by unchecking the Sum year-end entries checkbox.

 

 

The batch contains ALL accounts. The net of all accounts’ debits and credits (per fund) gets posted to the fund close account.

NOTE: There can be multiple close batches. If an entry is made back to a closed year, the YE process is performed for each batch that gets posted.

 

 

Financials and Net totals: (Note - Reports below are NOT true sign)

• Running a report with all accounts lists the total for all categories. Each Fund nets to zero. The amount shown for the Equity would be the posted amount for years that have been closed.

 

• Running a report for Rev/Exp accounts lists the total for only those categories and a net profit/loss total exists for each fund. NOTE – The amounts for the categories below match the report for all accounts.

 

• Running a report for Balance sheet accounts lists the total for only those categories. Each Fund nets zero. The equity amount shown would be the calculated amount that starts with the posted balance and adds to the current year's net profit/loss (the sum of the revenue and expense accounts as of the reporting period).

In this example, the fund 01 equity of the full report is 16,633,812.20. For the balance sheet only, the fund 01 equity is 18,242.620.71. (16,633,812.20 + 1,608,808.51)