How To Do Year End Closedown In Resource 32000

The following notes provide guidance on the required steps to follow to enable a safe Year End Closedown in the accounting ledgers.

The main purpose for carrying out a Nominal Year End Closedown, in a nutshell, is to clear down (delete) archived data, and transfer profit/loss to reserve. In the other ledgers year end closedown usually has less effect, typically limited to the zeroising of annual account turnover figures.

Note 1

Please note that the first priority in ensuring the desired effect of a Year End Closedown (and indeed nominal period closedowns) is to ensure that at the point of setting up Nominal Codes, the correct selection is made as to the code’s status; either:

  • Never delete detail
  • Delete detail at period end
  • Delete detail at year end

In Resource 32000 ledger items such as Sales Ledger Invoices, Cash Receipts, Purchase Ledger items, Stock FIFO lines, Job Costing lines etc are all stored in the nominal ledger detail file. As a safeguard all detail lines used as control accounts in this way will not be deleted, regardless of the answer to the above question.

Note 2

Before the Year End closedown can take place all Nominal periods must individually be closed down. This is achieved by going into the Nominal Ledger Housekeeping programme and selecting ‘Close Nominal Ledger Period’, and selecting the relevant period number. This process closes down the period in question.

Please note that a Nominal Period cannot be closed until all Daybooks for that period in each ledger are printed and posted. As well as the Daybooks there are certain other reports, if awaiting print, will become mandatory to print and save such as remittances, invoices and cheques, before the Nominal Period can be closed. You can override the requirement for these documents if you are sure that you do not need them, but daybooks must always have been printed before you can close the period.

Once a period has been closed no further entries from any ledger can be made into that period. Periods can be closed down through the year, or you can wait till year-end before closing them all. Any number of periods in any number of years can be left open simultaneously.

Note 3

Ensure that future Years and Periods have been set up within the ‘Year and Period Maintenance’ programme located in the System Control/Accounts Maintenance folders. Also check that the current year identifies “next year? correctly. This is needed by the year end procedure to create opening balances against the correct year code.

Note 4

Please remember that at both Period End and at Year End details are both archived and certain details are deleted. Therefore it is very important to carry out a complete backup of the database before carrying out the Month End and Year End routines.

Note 5

Make sure that you have correctly identified the Reserves Account and Balance Sheet department in nominal ledger housekeeping parameters. These are used by the year end process to store the Profit & Loss total balance for the year being closed.

Answers to Some Commonly Asked Questions

Q1. Do I have to close a period or even a year before posting to the next one?

Answer:

Resource 32000 is designed to be used in multiple periods and years simultaneously. Therefore it is not essential to close down one period or even year before commencing processing in the next. This then provides the operator with the flexibility to close the periods at his convenience. Later releases of Resource 32000 (post April ’00 ) even provide a facility to roll forward a provisional opening trial balance into the new year without yet closing the old year.

Q2. What is the difference between the Monthly Update / Year End Clear Down located in the housekeeping file of most ledgers compared with the Close Nominal Ledger Period / Year End Clear Down located in the Nominal Ledger?

Answer:

The Monthly Update programme in these ledgers performs the function of setting the new default processing period for the ledger, as well as archiving all fully allocated items so that they no longer show up in ordinary enquiries. Archived items can still be seen, by pressing the Toggle Archive button.

The Year End Clear Down programme in these ledgers performs the function of setting the new default year as well as the period for the ledger. This programme also performs year end archive and resets certain fields, such as turnover.

In carrying out the above process the periods are not closed down and so the operator has the ability to post transactions to previous periods and years, where necessary.

The Close Nominal Ledger Period and Year End Close Down programme however, permanently closes down the period and the year and therefore no back posting can take place after this process is run. Also running this process deletes all data set to be deleted at Month End / Year End, except data lines relating control accounts and those marked never delete.

Q3. Can I post back to a closed period?

Answer:

As explained in Q2 above once a period has been closed it is not possible thereafter to post to it.

Q4. Can I retrieve archived data, which has been deleted as part of the Month End or Year End Clear Down?

Answer:

No it is not possible to retrieve this data once it has been deleted at Month or Year

End. It is therefore very important to carryout regular backups of the database and especially before carrying out the above procedure.

Sales Ledger

  • Go to the Sales Ledger Housekeeping folder and run the Monthly Update programme for the final period of the financial year.
  • Print the Transaction Daybook for the final period of the financial year. Also check and confirm Daybooks for all other periods in the Sales Ledger have been printed and saved. If not, then print the Daybooks for these periods also, and save.
  • Go to the Housekeeping folder and run the Annual Update programme, selecting the next financial year code and period in which to commence your processing within the Sales Ledger.

Purchase Ledger

  • Go to the Purchase Ledger Housekeeping folder and run the Monthly Update programme for the final period of the financial year.
  • Print the Transaction Daybook for the final period of the financial year. Also check and confirm Daybooks for all other periods in the Purchase Ledger have been printed and saved. If not, then print the Daybooks for these periods also, and save.
  • Go to the Housekeeping folder and run the Annual Update programme, selecting the next financial year code and period in which to commence your processing within the Purchase Ledger.

Cash Book

  • Go to the Cash Book Housekeeping folder and run the Monthly Update programme for the final period of the financial year.
  • Print the Transaction Daybook for the final period of the financial year. Also check and confirm Daybooks for all other periods in the Cash Book have been printed and saved. If not, then print the Daybooks for these periods also, and save.
  • Go to the Housekeeping folder and run the Annual Update programme, selecting the next financial year code and period in which to commence your processing within the Cash Book.

Stock Module

  • Go to the Stock Module Housekeeping folder and run the Monthly Update programme for the final period of the financial year.
  • Print the Transaction Daybook for the final period of the financial year. Also check and confirm Daybooks for all other periods in the Stock Module have been printed and saved. If not, then print the Daybooks for these periods also, and save.
  • Go to the Housekeeping folder and run the Annual Update programme, selecting the next financial year code and period in which to commence your processing within the Stock Module.

Fixed Assets Module

  • Go to the Fixed Assets Module Housekeeping folder and run the Monthly Update programme for the final period of the financial year.
  • Print the Transaction Daybook for the final period of the financial year. Also check and confirm Daybooks for all other periods in the Fixed Assets Module have been printed and saved. If not, then print the Daybooks for these periods also, and save.
  • Go to the Housekeeping folder and run the Annual Update programme, selecting the next financial year code and period in which to commence your processing within the Fixed Assets Module.

Payroll Module

  • Go to the Payroll Module Housekeeping folder and run the End of Period programme for the final period of the financial year.
  • Print all required Year End reports, such as the P14’s and P60’s.
  • Print the Transaction Daybook for the final period of the financial year. Also check and confirm Daybooks for all other periods in the Payroll Module have been printed and saved. If not, then print the Daybooks for these periods also, and save.
  • Go to the Housekeeping folder and run the Year End programme. The payroll Year End resets numerous cumulative PAYE and NI balances, and removes week 1 status from all employees in the specified payroll. The new ledger year and period numbers will also need to be selected at this point, while the PAYE period number is automatically set to 1.All leavers will automatically be deleted at this point.

Job Costing Module

  • Go to the Job Costing Module Housekeeping folder and run the Monthly Update programme for the final period of the financial year.
  • Print the Transaction Daybook for the final period of the financial year. Also check and confirm Daybooks for all other periods in the Job Costing Module have been printed and saved. If not, then print the Daybooks for these periods also, and save.
  • Go to the Housekeeping folder and run the Annual Update programme, selecting the next financial year code and period in which to commence your processing within the Job Costing Module.

Expenses Module

  • Go to the Expenses Module Housekeeping folder and run the Monthly Update programme for the final period of the financial year.
  • Print the Transaction Daybook for the final period of the financial year. Also check and confirm Daybooks for all other periods in the Expenses Module have been printed and saved. If not, then print the Daybooks for these periods also, and save.
  • Go to the Housekeeping folder and run the Annual Update programme, selecting the next financial year code and period in which to commence your processing within the Expenses Module.

Assemblies Module

  • Go to the Assemblies Module Housekeeping folder and run the Monthly Update programme for the final period of the financial year.
  • Print the Transaction Daybook for the final period of the financial year. Also check and confirm Daybooks for all other periods in the Assemblies Module have been printed and saved. If not, then print the Daybooks for these periods also, and save.
  • Go to the Housekeeping folder and run the Annual Update programme, selecting the next financial year code and period in which to commence your processing within the Assemblies Module.