Year End Checklist

Recommended Closing Sequence

  

The normal year-end processing for AddonSoftware by Barista generally follows the same sequence used during the closing of any other fiscal period. It is recommended that you take a tiered approach to year-end processing for the various applications, as shown below:

Tier 1   

    • Sales Order Processing

    • Purchase Order Processing

    • Sales Analysis

    • Shop Floor Control

Tier 2

    • Accounts Receivable

    • Accounts Payable

    • Inventory Control

Tier 3

    • General Ledger

 

It is essential that General Ledger be closed last. Unlike processing during the course of the fiscal year, other applications cannot post transactions into a prior fiscal year. Only the General Ledger Journal Entry task can be used to make adjusting entries for the prior fiscal year.

  

The Bill of Materials application does not have any specific year-end processing requirements.

Tier 1


 

CAUTION: Backup your data files before beginning the Year End Close process and at any significant point along the way, such as prior to running a Period End Update task.

 


 

Sales Order Processing

  1. Make certain that all Sales Registers for the last fiscal period have been updated.

  2. (Optional)  Print the reports on the Period End Processing menu node of the Sales Order Processing menu, for the last fiscal period.

  3. (Optional)  Review the Contract Prices and Pricing Tables on the Sales Order Processing Maintenance menu.  Make any necessary changes.


Purchase Order Processing

(Optional)  Print any of the reports on the Purchase Order Processing Reports menu node.


Sales Analysis

  1. Back up your data files.

  2. (Optional)  Print any of the Sales Analysis Reports on the Reports menu node of the Sales Analysis menu.  

Note: The Accounts Receivable Period End Update will roll the current fiscal year amounts to last (prior) year fiscal amounts.


Shop Floor Control

  1. (Optional)  Print any of the reports on the Shop Floor Reports menu.

  2. For systems using the Average Costing Method, print the Work Order Header Report and compare the total balance to the General Ledger Work In Process account(s).  If not in balance, make any adjustments and repeat until in balance.

  3. Close the Recurring Work Orders for the last fiscal period using the Close Recurring Work Orders option on the Period End Processing menu.

  4. Print and update the Closed Recurring Work Order Summary Report.

  5. (Optional)  Print the Closed Work Order Variance Report on the Period End Processing menu for the last fiscal period.

  6. Back up your data files.

  7. Run the Period End Update on the Period End Processing menu, for the last fiscal period.  In addition to the standard period end functions, the current year indicator is incremented.

 

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Tier 2


 

CAUTION: Backup your data files before beginning the Year End Close process and at any significant point along the way such as prior to running a Period End Update task.

 


 

Year End - Accounts Receivable

 
  1. Make certain that all applicable Simple Invoice and Cash Receipt Registers have been updated for the last fiscal period.

  2. Run the following tasks on the Accounts Receivable Period End Processing menu for the last fiscal period:

    1. Print the Aging Report and compare the total balance to the General Ledger Accounts Receivable account(s).  If not in balance, make any necessary adjustments and repeat until in balance.

    2. (Optional)  Post Finance Charges.  Use the Generate Finance Charges or Finance Charge Entry task.  Print the Finance Charge Register, and run the update.

    3. (Optional)  Print Customer Statements.

    4. (Optional)  Print the Monthly Cash Receipts Journal and Customer Ranking Report.

    5. (Optional)  Print the Order/Invoice Customer Job Report (jobs may be purged automatically during the Accounts Receivable Period End update, based on the Retain Job? field in the Customer Job Number option of the Accounts Receivable Customer Maintenance task and the Months To Retain Jobs field in Sales Order Processing OP Parameters maintenance.)

  1. Back up your data files.

  2. Run the Period End Update on the Period end Processing menu, for the last fiscal period.  

    In addition to the standard period end functions, the current year indicator is incremented. The year-to-date sales and cost of sales figures in the Customer Masterfile and Sales Analysis are moved to last (prior) year. The current year-to-date figures are reset to zero.

 

Accounts Payable

 

NOTE: If the month is December (even though it may not be your fiscal year-end), you must print 1099s using the Export 1099 Data To Text option on the Accounts Payable Period End Processing menu and import the text files created by that menu option into Account Ability. The form to use is the standard miscellaneous income form. See step #2.

 

AddonSoftware recommends the third party 1099 form printing software, Account Ability, from www.idmsinc.com.

 

AddonSoftware and BASIS International Ltd. make no warranties either express or implied as to the use of third party software with BASIS products. In no event will BASIS be liable for damages, including any loss of profits, lost savings, or other incidental or consequential damages arising out of your use or inability to use third party software products.

 

 

  1. Make certain that all Invoice Registers, Purchase Order Invoice Registers and Check Registers have been updated for the last fiscal period.

If the month is December, print 1099s:

  1. Use the Export 1099 Data To Text task on the Period End Processing menu. This will create two text files, one containing data from the AP Parameter Maintenance/Report Parameters task, and a second file containing the 1099 data for each vendor. The first file will be named APCLIENTnn.TXT where nn is the Addon firm number. The second will be named AP1099DATAnn.TXT where, again, the nn stands for the Addon  firm number.   

    NOTE: Both exported text files will be located in the <bbjhome>/apps/aon/data directory.

 

If you haven’t already set up or imported a valid client for 1099s, follow the procedures in Account Ability to import the client text file that is created by the export task.

NOTE: Clients imported for 1099s may be used for W-2s, and clients imported for W-2s may be used for 1099s. However, you will need to add a phone number into the 1099 section of the Account Ability “Contacts” tab for each client imported from Addon Hybrid v6 Payroll that is used for 1099s.

    1. Follow the procedures in Account Ability to import the 1099 data text file that is created by the export task. Specific instructions are provided in the documentation accompanying Account Ability.

    2. Review the client data in Account Ability.

    3. Review the 1099 data in Account Ability.

    4. Make any necessary adjustments to correct balances, include/exclude vendors, or modify client data. As a general rule, make these adjustments in AddonSoftware, and then re-export the data. While you can make changes to the data in Account Ability, those changes won’t be reflected in AddonSoftware.

    5. Print Form 1099-Misc from Account Ability using the standard IRS approved form, available from most form suppliers.

  1. Print the Aging Report and compare the total balance to the General Ledger Accounts Payable account(s).  If not in balance, make any necessary adjustments and repeat until in balance.

  2. (Optional)  Print the Purchase Journal, Disbursements Journal and Monthly Check Report on the  Period End Processing menu, for the last fiscal period.

  3. Back up your data files.

  4. Run the Period End Update on the Period End Processing menu, for the last fiscal period.  In addition to the standard period end functions, the current year indicator is incremented. Each vendor’s year-to-date figures are cleared for purchases, discounts and payments (and next year-to-date figures are moved to the current year).  If the period is December, you must also run the Close Form 1099 Year task so that the calendar year-to-date disbursement figure is reset to zero.

 

Inventory Control

  1. (Optional)  Print any applicable reports on the Inventory Control Reports menu and the Lotted/Serialized Inventory menu.

  2. (Optional)  Print the ABC Analysis Report and EOQ, Order Point and Safety Stock Report on the Inventory Control Period End Processing menu.

  3. Many companies perform a Physical Inventory as part of their year-end procedures.  Follow these steps to record your physical inventory:

    1. Process all computer transactions that affect inventory quantities.

    2. Process all computer transactions that affect inventory quantities.

    3. On the Physical Inventory menu perform the Select Cycles for Freeze task to select all or a portion (by specifying one or more cycle codes) of the inventory to be counted.  This creates a “freeze” file of the on-hand quantities.

    4. Print the Count Sheets.  If it is necessary for you to print the count sheets prior to completing all computer transactions, then you may do the following:

      1. Perform the Select Cycles for Freeze task to select all or a portion of the inventory.

      2. Print the Count Sheets.

      3. Unselect the Inventory using Cancel Physical by Cycle Code task

      4. Complete all of the computer transactions.

      5. Select the inventory again, using the Select Cycles for Freeze  task.

    5. Take a physical count of the items shown on the count sheets.  Record on-hand quantities on the count sheets.

    6. Enter the physical counts using the Physical Count Entry task.

    7. Print the Register (Register and Update task) when all counts have been entered.  The register shows the actual on-hand figure, the computer on-hand figure (from the freeze file) and the calculated variance between the two.  Do Not Update.

    8. Verify the counts.  If necessary, enter or adjust the counts using the Physical Count Entry task.  Reprint the register and update, when it is correct.

    9. Print the Inventory Valuation Report on the Period End Processing menu.  Use Ending Balance.

    10. Use the Inventory Valuation Report to adjust the General Ledger Inventory account(s), except for Work In Process.

  1. Back up your data files.

  2. Run the Period End Update task on the Period End Processing menu, for the last fiscal period.  In addition to the standard period end functions, the current year indicator is incremented.

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Tier 3

 


 

CAUTION: Backup your data files before beginning the Year End Close process and at any significant point along the way.

 


 

General Ledger


  1. Make certain that you have run the Period End Update for all applicable subsidiary modules for the last fiscal period.

  2. Run all General Ledger period end tasks for the last fiscal period:

    1. Verify that all Recurring Journal and Account Allocation entries have been made and updated

    2. Verify that all period end adjustment entries have been made and updated.

    3. Print the Transaction History, Summary Activity and GL Trial Balance reports on the General Ledger Reports menu.

    4. Print Financial Statements and review.

  1. Run the Period End Update on the Period End Processing menu for the last fiscal period.

Note: You may continue to process transactions into the next year without closing the current year (see Step #4).  

However, once you close the last fiscal period, only Journal ID codes with the Year-end Adjustment (Y/E Adjs?) checkbox marked may be used to post transactions to the incomplete year.

  1. Run the Update Beginning Balances task on the Period End Processing menu.  This task will bring balances forward into the next year.  Retained earnings will be calculated from the accumulated difference between the income and expense accounts.  This difference is posted to the Retained Earnings account specified in the parameters.  The ending balances for Asset, Liability and Capital accounts will become beginning balances for the new year.  

 

Note: You may run the Update Beginning Balances task as many times as necessary.

  1. If necessary, make all year-end adjustments using a Journal ID code with the Year-end Adjustment (Y/E Adjs?) checkbox marked.  Date these adjustments in the last fiscal period (a warning message displays indicating that the last period has been closed).

  2. Create a special backup tape for year-end.  Label and store for several years.

  3. Run the Year-end Update task on the Period End Processing  menu.  The update performs the following tasks:

    1. Current Year Actual and Budget figures for each general ledger account are moved to the prior year history file.

    2. Next Year Actual and Budget figures are moved to the current year.

    3. Year-To-Date Profit (or Loss) is calculated from the accumulated difference between the Income and Expense accounts, and posted to the Retained Earnings account specified in the parameters.

    4. Beginning balances for Income and Expense accounts are set to zero.

    5. Ending Balances for Asset, Liability and Capital accounts become Beginning Balances for the new fiscal year.  An “Update Beginning Balances” register is automatically generated.

    6. The Prior Year Closed? checkbox is marked on the Fiscal Calendar.

 

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