Year End Closing Year End Closing Processing Processing RequirementsRequirements

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• Review Specific Module Requirements for Year End Close Processing• Completing operations• Order Entry, AR, PO, AP, IM, AD

year end closing steps

• Discuss General Ledger Temporary & Final Close

• Review F9 Financial Report Writer issues

• Year End Payroll update requirements

• Purging Considerations

Agenda

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Completing Operations• Order Entry – Post Invoices & Credit Memos• Order Entry – Post Cash• AR – complete any sales transactions and cash

receipts • PO/Receiving – Complete Receiving• PO – Close purchase orders• Inventory – complete all movements• POP – complete all material Issues and POP

completions

Completing Operations• SFC – complete all material issues/returns• SFC – Complete all activity transactions and

shop order close processes• MCA – Post activity transactions• LP – Generate earnings• Payroll – complete the last payroll for the year• Assets – complete the last depreciation cycle• AP – complete all checks, voucher entry and

posting

Sequence of Period and Year End Closing

Order Entry

AR

Inventory Payroll

PO Receiving

APAssets &

Depr.

Production

General Ledger

Order Entry• Perform the OE month end procedure• Complete the year end processes for AR and

IM except for clearing the YTD accumulators• Perform the Sales History Year-End Procedure• Clear the AR and IM YTD accumulators after

printing all AR and IM reports for year end.• There are no fields cleared or OE data

captured at year end; OE is a date based package

Accounts Receivable• Run the Sales Analysis Reports prior to

clearing the YTD accumulators. Clear the accumulators when printing is completed.– Fields cleared:

• YTD sales dollars, cost dollars; highest customer balance; service code units, dollars and costs; commissions per sales rep.; sales, misc. charges and taxes per tax code.

– Fields (data) captured:• YTD sales dollars, cost dollars and sales dollars per

sales rep are captured to Last Year Sales, Last Year Cost, and Last Year Sales per Sales Rep.

Purchase Order & Receiving• Perform the normal period end• Perform the “Clear Vendor YTD Statistics”

process– Fields cleared:• YTD PO’s per vendor• Vendor performance data: vendor percent late,

vendor lines late, vendor line items ordered, average cost variance %, average reject items %, average lead time, average days late.

– Fields captured: none

Accounts Payable

• Perform Period End Procedure• Perform the “Clear Vendor Accumulators”

process– Two separate processes – one for statistical

payment information, the other for 1099 payment amounts.

– If on calendar year, both should be cleared at the same time. If on a fiscal calendar, clear the statistical payment information at the close of the fiscal year, and the 1099 payments at the close of the calendar year.

Accounts Payable

• 1099 Processing Considerations– 1099’s can be printed using either the current

year 1099 amounts or last year’s 1099 amounts– Consider purchasing 1099 forms from Macola

• Fields cleared at Year End:– YTD purchases, discounts, amount paid, 1099

amount• Fields captured at Year End:– Last year purchases, discounts, amount paid,

1099 amount

Inventory• Perform Period End Process• Clear the YTD Accumulators (after all

reports have been printed)• Fields cleared:– YTD Quantity sold, used, scrapped; YTD Sales

dollars, Cost of Sales dollars• Fields captured:– Prior Year Quantity sold, used, scrapped,

sales dollars and cost dollars

Assets and Depreciation• Perform the Period End Process• Clear YTD Accumulators– Advances the year to the new year– Transfers YTD depreciation totals to Last

Year depreciation amounts– Resets YTD depreciation to zero– Allows purging of records of disposed assets

that have no YTD depreciation

General Ledger• Perform Period End Processing• Do NOT perform account period file

maintenance from Period 12 to next year at this time

• Perform the Temporary Year End procedure– Accounting calendar will advance automatically

to Period 1 of next year– Entries possible to new year or prior year

(Balance Sheet or P & L)– Do not make entries to Retained Earnings– This process should be run only once

General Ledger• Run the Final Year End Procedure when the last

entries to the prior year have been completed– Will close out the P & L accounts, optionally

creating the Retained Earnings Entry• Retained earnings entry will require out-of-balance

posting to be checked on in GL Setup to allow one-sided entry posting.

– Will post prior year balances to Comparative Balances

– Perform this with all users out of the system, and turn off Transaction Tracking (company setup) prior to running the process. Turn back on when completed.

F9 Considerations

• When working within a Temporary Close:– Worksheet will already be referencing prior

year– Add column on the spreadsheet to reference

the current year – Be sure the period portion of the F9 function is

set to the correct period you are trying to use• After Final Close, you are no longer

referencing prior year…without referencing comparatives

Payroll • Perform month end process• Perform quarter end process• Perform W-2 Processing– Do NOT process any new year payrolls or clear

YTD accumulators prior to performing W-2 Processing

– Consider an archived copy (separate company) to avoid having to print W-2’s that soon

• Clear Employee Accumulators

Year End Payroll

• Payroll update available on Exact Macola website

• Download, place in Macola root directory, and run the update program– To be performed after final payroll for the

year is processed

Purging Considerations• Macola does not purge itself – you must

have a program and policy in place to do this– Purge frequency for each type of data– Retention policy for each type of data

• Always set a purge password• System becomes slower, queries take

longer, some views become useless without purging

• Year End is an excellent time to purge

Purging Considerations• Most Frequent Purging Offenders:– GL Distribution Files– Audit trail reports– Inventory transaction history– Journal history– Purchase history– Sales history

• A decision to NOT purge Macola’s files is not a prudent system administration policy

• Consider purchasing the Pulse Archive Utility to automate the purge process• No data is lost – takes minutes instead of hours