GL Year-End Closing Checklist

Q. GL year-end closing is a major event for our accounting department every year, but it's easy to forget the steps involved since we only do it once a year. Do you have a checklist for year-end closing that we can follow?

A. Yes. The GL year-end closing process is very simple, but it's important to following the process exactly in order to make sure you archive data adequately.

Suggestions:
  1. Before processing, you should archive your data. Please refer to another article -- "How to Archive GL Data Before Year-End Closing Procedure."
  2. Check Accounting Period file -- For example, let's say you would like to close the year 2013 (12/31/2013). 
  • Without Temporary Year-End -- The Accounting Period should be in the year 2013 (i.e., 1/1/13 to 12/31/13).
  • Temporary Year-End Procedure has already been done -- The Accounting Period should be in the year 2014 (i.e., 1/1/14 to 12/31/14). This is very important!! Do not change your fiscal year back to 2013.    
     3. Changing G/L Setup:
  •  Field# 1. Allow Out Of Balance Posting? = enter "Y"
  •  Field# 7. Create Retained Earnings Transaction In The Gen-Jnl-Trx File At Year End? = enter "Y" and insert proper Retained Earnings chart account.

     4. Now you are ready to proceed to Year-End Closing from the GL/Processing/Year-End Procedure.
  •     Without Temporary Year-End --  Select "F" (Final) and answer "Y" to start closing.
  •     Temporary Year-End Procedure has already been done -- Enter "Y" to start closing.
     5.  Post Retained Earnings -- The system will create one side journal entry by the Retained Earnings account for your year 2013 Net Income or Loss. Go ahead and post the transaction, making sure to answer "Y" to the "Ok To Post If Out Of Balance?" question.

     6. After posting your Retained Earning:
  • Change "Allow Out of Balance Post?" back to "N" in GL Setup.
  • Make sure Fiscal Year on new year (i.e., 2014) in Accounting Period.
  • Run (2014) First Month of Summary Trial Balance to make sure the "Beginning Balance" is in balance (Grand Total = 0.00).

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