The period end is an essential process, particularly where the nominal ledger is in use. It closes the current period and moves the ledger forward into the next period.
As the period-end can alter so many details in the file in a matter of a few minutes, you are advised to have a back-up prior to proceeding.
Firstly, you are shown the dates covered by the period you are closing and the dates of the new period.If these are correct then you can choose to proceed.
If the nominal ledger is not fully updated for the current period then you are warned accordingly.Clicking OK you are returned to the menu for you to run the nominal update process.
For audit purposes the system insists that you have ‘printed’ a list of the current period transactions on file. Reports that satisfy this requirement are the ‘List All Transactions’ report, and the ‘All Transaction Types’ listing reports. Clicking OK you are returned to the menu for you to run these reports.
You are warned to have a full backup before proceeding with the period end, and if you choose to continue, the period end process begins.
The period end process automatically:
Updates the ‘Balance-B/F’ on each account with the current period balance (‘Balance’ less ‘Forward Balance’)
Zeroes the ‘Forward Balance’ on each account
Moves current period turnover and costs into appropriate period number
Adds forward turnover and costs to year-to-date values
Erases historic transaction and analysis records (if configured)
Clears the ‘Forward Transaction’ and ‘Forward Allocation’ values on the transaction file
Marks transactions as ‘old’ if fully allocated
Updates the next period number and dates from the calendar
As the period end process is completed the system displays the new period number and date range.
When you run the period end for the final period of the year the system also performs the year-end. The year-end process follows the same basic procedure as above. However, before you can run the year end for the sales/purchase ledger you need to have opened the new year.
If the Nominal Ledger is in use then this is achieved through the nominal ledger ‘Year End Procedures’ menu and the option ‘End of Year Procedure’. See the Nominal Ledger / Cashbook manual for more details.
If no nominal ledger but Cashbook is in use this is achieved through the cashbook ‘Year End Procedures’ menu and the option ‘End of Year Procedure’. See the Nominal Ledger / Cashbook manual for more details.
Nominal/Cashbook End of Year
The nominal/cashbook year end procedure opens up the next year for posting but does not prevent you from continuing to post to the current year. Although the procedure does create opening balances for the new year, any further postings into the current year after this point will re-update the opening balances.
When running the year-end process the system will additionally prompt after confirming that a backup has been taken and it is OK to continue for you to remove ‘Flagged Accounts and their Transactions from the system’.
Throughout the year you may have flagged some inactive accounts for deletion at year-end.Provided the balance is 0 and there are no outstanding sales/purchase orders then this option will delete the flagged account(s). If choose to proceed, a message will display the number of accounts removed before proceeding with the remainder of the period/year-end process.
In addition to the actions above a year end will automatically:
Move the current year-to-date turnover and costs as last year turnover and costs.
Zero the current year-to-date turnover and costs before updating any forward values.
Article ID: 1330
Created On: Mon, Jul 2, 2012 at 11:43 AM
Last Updated On: Mon, Jun 19, 2023 at 3:49 PM
Online URL: https://kb.datafile.co.uk/article/period-end-year-end-1330.html