Journal Cleardown - Nominal

You can clear transactions from the transactions file whenever you like and you do not have to remove transactions at all (subject to product level file size limits). You are advised to keep all transactions on file until at least the close of the previous year as this would allow you to print an audit report for the previous year’s accounts in full for your auditors, which can considerably speed the audit and possibly reduce the charge.

Take this option when you are ready to remove historical transactions.

You are asked for the date up to which you clear transactions. You can enter any date prior to the start of the previous year, if you enter a date within the accounting calendar – current and previous year date range – then you can only enter a year start date or a period end date.

Retain Any Provisional Journals Not Yet Reversed

If you should remove provisional transactions which you have not yet reversed, then you may forget to reverse them later when they are due. You should normally reply ‘Yes’ in this case to retain provisional journals on file.

If, however, you have closed the year, then any provisions which should have been reversed should come to light during the audit. The auditor will give you adjustments to handle these, so you should not leave them on file for future reversal in case they get double counted. In this case you would reply ‘No’.

Retain Any Unreconciled Bank Journals

If using cash book and your bank accounts are set for reconciliation, then you will be prompted to retain any unreconciled bank journals. You would usually respond ‘Yes’ to this.

After confirming the retention questions you are prompted to begin the cleardown process – reply as required.

B/F Journal

Article ID: 1039
Created On: Wed, Jun 27, 2012 at 2:37 PM
Last Updated On: Mon, Jun 19, 2023 at 7:15 PM

Online URL: https://kb.datafile.co.uk/article/journal-cleardown-nominal-1039.html