Process Overview : End of Year Processes

Purpose

To provide support resources for the processes and activities required to complete an End of Year in the ICE Business System.

The resources are:

Advanced User Information

The ICE Business System is very flexible and does not require End Of Year to be performed on the 30th June.  End of Year should not be performed until most General Ledger Accounts have been reconciled.  However, if the End of Year process has not been completed, General Ledger Accounts that require a balance carried forward (e.g. Balance Sheet Accounts) will not display an opening balance until the End of Year procedure is complete, including Bank Accounts.  Thus the New Year’s Balance Sheet will not display the closing balance of the previous year.

The General Ledger End of Year process looks at each GL Account and, depending upon the flag set for the account, either transfers the Year Total to the Retained Earnings Account in Control Accounts, or creates an Opening Balance for the next year, carrying forward the previous year balance.  Entries carried to Retained Earnings are totalled and entered as one opening balance item in Period Zero of the New Year.  Balance Sheet items are individually carried forward to Period Zero in the New GL Year for each GL Account.

The End of Year procedure should be performed and supervised by the System Administrator.  The control and timing of Operators posting entries is vital to a successful End of Year.

In previous versions any transactions posted in to the previous financial year required a corresponding opening balance adjustment for the current year. This is no longer necessary as the process is now automated. Transactions can be posted to previous financial years if your staff security level allows this.

Once End Of Year has been performed, any entries posted in the closed year will be reflected automatically in all subsequent years’ opening balances. This functionality ensures that all entries are only needed in the appropriate financial year (saving double posting).

Also required in the End of Year process is the closing of Accounts Payable and Accounts Receivable accounts.  This will calculate the Debtor and Creditor figures for the year.  This information is displayed under the Sales Analysis area on the Purchase and Sales tab in the Customer Masterfile (Admin >> Customer) and the Purchase Analysis on the Enquiry Tab in the Supplier Masterfile (Admin >> Supplier).  To ensure your system displays accurate figures, these accounts need to be closed at the end of the financial year, e.g. as close to 30th June as possible, even though their General Ledger End Of Year may not have been completed for the General Ledger.