This blog is part 1 of 2 where we will walk through a step-by-step of how to complete the prep for Year-End closings for companies using Calendar Year-end. There are four modules that come into effect during the year end process.
- Inventory (INV)
- Receivables Management (RM)
- Payables Management (PM)
- Finance
Year-ends can get very tricky however, there are no financial impacts for three of the modules listed above- RM, PM and INV as they only provide statistical figures and reset the statistical counters. Therefore, in the case of any errors, you are able to complete a database refresh to go back. The module that has statistical updates and financial impact is the Financial module, this is the module you must be most careful with prior to completing.
Prior to beginning the process ensure these steps are taken:
- Complete a backup
- All users should be out of the system
- Batches should be closed and completed (Best Practice)
- Close Fiscal Periods (GP >>Tools >>Setup >>Company >>Fiscal Periods)
- Print Control Reports (AR and AP Trial Balance, Current Inventory Report, Reconcile (Chequebook, Inventory, AP and AR subledgers to GL) (GP >>Tools >>Routines >>Financials >>Reconcile)
Once all the steps above are completed you are ready to begin Year-end Closing. Since the Financial module has the highest impact it must be closed last. For best practices, close in the following order INV, RM, PM and Financials.
Look out for part 2 of the blog which will discuss where the closing process will take place.