Year End Close

The Year End Close function closes the general ledger Income and Expense accounts and permits entry into the new year and the previous two years. (The year table contains three years. Therefore, when the new year is created, the oldest year is removed and is unavailable for posting to the general ledger. For example, when you close 2009, 2010 is created and 2007 is no longer available; the year table contains 2010, 2009, and 2008.)

This function affects the general ledger only: You can post only to periods that exist in the Year Table, but you can enter invoices on dates that are not in the Year Table. This means performing year-end close on the last day of the fiscal year is not strictly required because you can still interface in the new year even if you have not performed year-end close. (However, you cannot enter checks and receipts, apply, and so forth, because these functions post to the general ledger.)

GlobalWare moves the last year's balances to the prior year balances and moves this year's balances to last year's. The balances for the new "This Year" are the ending balances from the new "Last Year" for Asset, Liability, and Capital Accounts. The balances for the new "This Year" Income and Expense accounts all become zero (0.00), and GlobalWare stores the net in the beginning balance of the retained earnings account.

If you need to change accounting periods at some time other than year end, contact the GlobalWare Help Desk. GlobalWare provides a separate utility for changing accounting periods.

When to Run the Year End Close

You can run the Year End Close function anytime just before or just after your year end. Do not hold off posting transactions to the new year until you are all done with the old year.

You can interface and enter invoices into GlobalWare in the new year if you have not run Year End, but you cannot use any functions that post to the general ledger (checks, post bank deposit, adjustments, journal entries, post invoices/sales).

You cannot repeat the year-end close; therefore, make sure that everything is up to date and valid before processing. However, you can make adjustments in the previous year and adjust retained earnings after Year End Close, so you do not need to wait until the previous year’s books are finalized before performing Year End Close.

Running the Year End Close

Before running the year-end close, you need to perform the following tasks:

• Recalculate retained earnings for two years ago (on the GL submenu, click Chart of Accounts, and then press Shft+F5 to recalculate retained earnings). For details, see Adjusting Retained Earnings.
• Run GL Proof of Balances for all periods. On the GL submenu, click GL Proof of Balances. For details, see GL Proof of Balances.
• Make sure the Trial Balance is in balance. On the GL submenu, click Trial Balance. For details, see Trial Balance.

• Make sure to post or delete all unposted cash receipts.

  • To post, click Post Deposit on the A/R submenu. For details, see Post Deposit.
  • To delete, see Creating Deposits and Working with Existing Deposits and Editing and Deleting Unposted Cash Receipts.
• Back up the database. On the Tools menu, click Backup or use GwSrvBkp.exe. For more information, see Backup and Restore Overview.

Important: The Year End Close function cannot be run with more than one user logged in to GlobalWare.

Multi-Users – If you receive the following message when running the year end close, the service must be stopped on the database server to clear the message. Then, restart the service and have one user log in to GlobalWare to run the year-end close.

To process the year-end close:

1. On the System submenu, click Year End Close.

   The Year End Close screen appears.

   Year End Close screen

   

2. Select each check box to indicate you have completed the corresponding tasks.
3. When you are ready, click CLOSE YEAR.