how to guide for sage x3 · 1. go to financials > utilities > closing > year end...

CEH (NexTec Dec 2019) 1

How to Guide for Sage X3

Fiscal Year End Close

Contents

Overview 2

What is a Soft Close? 2

What is a Hard Close? 2

Soft Close 3

Hard Close 6

Re-Open Fiscal Year 15


Overview This document is designed to give an overview of the year end functionality including:

• Soft Close (Year End Simulation)

• Hard Close (Fiscal Year End)

• Re-open a Fiscal Year

What is a Soft Close?

A Soft Close is a simulation of year end close. Run the Year End Simulation function

(SIMULFINES) – this will set up the Trial Balance for the ‘next’ or ‘new’ year by updating

and rolling the Opening Balances and Retained Earnings into the new year without

creating any Year End or New Period Journal Entries.

This function may be run as often as needed when activity has been made to the

previous year.

What is a Hard Close? A Hard Close is the actual close of the fiscal year. It changes the Fiscal Year status to

“Closed” and updates account values by producing a New Period Journal Entry.

All previous Fiscal Years and Periods must be closed. The “new” year must be in

“Open” status, with at least the first Period in “Open” status.

Once the Fiscal Year End Function (FIYEND) is run and the year closed, no further

activity can be posted to the year. X3 provides a function to Re-Open Year End

(OPNFIY). This function deletes the New Period Journal Entries and requires the Fiscal

Year End Function to be run again to close the given Fiscal Year.


Soft Close The Soft Close is not a required step as part of the Fiscal Year End process (hard

close), but it is required to Simulate the New Year prior to hard closing the current year.

The Soft Close enables a simulation of the New Year opening balances which is helpful

to review and validate prior to the Hard Close of the current year.

This process must be re-run whenever a change is made to the previous year’s general

ledger to update the opening balance values for the new year (before a hard close is

run). This process does not require all periods to be in a closed status, which enables

you to run the soft close through the new year as you’re gathering adjustments that

need to be made prior to hard close.

Important Note and Concept: You will ALWAYS run the Year End Simulation for the

‘new’ year (i.e. the year you want to roll the Opening Balances into). Companies are

typically run individually.

Our example: Year End Close for 2019, New Year is 2020.


1. Go to Financials > Utilities > Closing > Year End Simulation

2. Select the applicable ledger (in a single Legislation environment, the Legal

Ledger is also the Analytical Ledger). Tab to the next field.

3. All Companies must be unchecked

4. Select Company

5. Tab to the Fiscal Year and X3 will automatically enter the next open year (the

new/next year)

a. If you notice the start and end dates are for the current year, this means

you’ve pulled the previous fiscal year placeholder. Select the next fiscal

year placeholder and verify the correct dates are in the start and end date

fields.

6. General Balance and Analytical Balance must ALWAYS be checked. These

fields are checked by default.

a. The only time they should be unchecked is if directed to do so while

receiving support from the help desk.

7. Click OK in the upper right corner.


8. You will receive a log indicating the Simulation was successful. It will note the

Base Year – this is the simulated year to be closed, where the Opening Balances

were rolled “from” (in this case, 2019). If there are any errors, they will be noted

in orange on the log. Errors can be viewed by clicking the “Errors” button in the

right panel. All errors will need to be addressed and the Year End Simulation re-

run prior to continuing. If no errors are present, close the screen.


9. Run the Sample Trial Balance for 2020 (the new Year) and the Retained

Earnings and expense accounts. Verify the amounts match.


Hard Close This process will close the selected fiscal year, meaning no other entries may be posted

to that year (without performing the Re-Open Fiscal Year Function). It will also create

your New Period Journal Entries, rolling into Retained Earnings.

Performing a hard close is recommended, because the closing process updates records

and clears out opening balances. This is helpful for inquiry and reporting purposes. If

you do not hard close your fiscal years, account queries and reports will show balances

from when you first started using X3.

Our example: Year End Close for 2019, New Year is 2020.

1. Ensure date values are correct. Navigate to Setup > General Parameters >

Chapter SUP: Supervisor > Group DEF: Default Values

2. If needed, set General Parameter ENDDAT (End Date) to 12/31/xxxx where xxxx

is at least several years in the future (in this example, it is set to 12/31/2025).

a. This date is not dependent on Fiscal Year Creation

3. It is also helpful to verify DATEDEBDFT (Default start date) and DATEFINDFT

(Default end date) are set to your preferences.

a. These parameters define date ranges in functions where a date range are

required.

b. These parameters ARE dependent on Fiscal Year Creation


1. Ensure Financial Parameter values are correct. Navigate to Setup > General

Parameters > Chapter CPT: Accounting > Group FIY: Financial Year End

2. Validate the following values:

a. FRWANA – Analytical carry-forward = Yes

b. FRWGAC – General carry-forward = Yes

c. GAUFIYCL – Closing document = FIYCL

d. GAUFIYEN – Fiscal year end journal = FIYEN

e. GAUFIYRE – Results journal = FIYRE

f. GTECLO1 – Year-end journal type = NEWPR

g. GTEFRW1 – Carry-forward journal type = NEWPR

h. GTEFRW10 – Carry-forward journal type = NEWPR


3. The next Fiscal Year MUST be open – verify it is open prior to closing the

‘current’ fiscal year (2020 in our example):


4. The first Period of the next Fiscal Year MUST be Open - verify the status of the

first Period of the next Fiscal Year is set to “Open”

5. Price updates for the next year must be entered (if applicable).

6. Currency Conversion Variance should be run (if applicable – It is recommended

to run this for Balance Sheet Variance only with an automatic reversal in the next

month).

7. Run the Stock Accounting Interface (FUNSTKACC) to ensure it is error free.

8. Run the WIP Accounting Interface (FUNWIPACC) to ensure it is error free.


9. Review the Accounting Tasks (Journal Status Monitor in previous versions) to

ensure:

a. Recurring task status = Active

b. Journals on hold = 0

c. Matching = 0 (highly suggested, but optional)

d. Query Status = Standby (ready and waiting to process journals)

i. In progress = when journals are processing

ii. Suspended = Need to activate the Accounting Task

10. All periods for the ‘closing’ fiscal year must be closed to ensure that all monthly

processing is complete and up to date including Final Validation.

11. Run all reports necessary for year-end balancing (AP/AR Aged Trial Balance),

Stock Status, etc.)


12. Year End Close – can be run for all ledgers if more than one.

a. Select Company. Tab

b. All Ledgers = No. (Default is Yes. However, if you set all ledgers to “No”

and then Tab, X3 will fill in the ledger and Document and Journal

automatically).

c. Ledger = Legal. Tab

d. Note that X3 will automatically default to the New/Next Year

e. The ANX Document should be set to NEWPR. Tab

f. The ANX Journal should be set to NEWPR. Tab

g. The Closing Document and Closing Journal should be blank (controlled in

the Ledger setup)

h. Click “OK” in the upper right corner.

i. Validate the log.


13. Once Year End Close funs, you’ll have two or more New Period Journal Entries

to review:


14. The Fiscal Year is now in closed status

15. Cost updates and transfers must be entered and updated (if applicable and may

be performed after the year is closed).

16. Budget maintenance should be performed (can be done after the year is closed).


Re-Open Fiscal Year If after year end close you realize you have adjustments that need to be made, X3

enables you to do this through the Re-Open Fiscal Year and Re-Open Fiscal Period

1. Ensure the Accounting Task is Active, with 0 Journals on hold and 0 matching.

2. Use Reopen Fiscal Year to delete New Period Journal Entries. Check the Y/N

Box and click OK.

3. Then use Reopen Period function to make adjusting entries in December. Check

the Y/N Box and click OK.


4. If the NEWPR Journal entry from Year End Close is already in Final status, it

cannot be deleted, and you will receive a message that states:

a. Carry-forward NP0000xx : Posted Entry, cancellation not possible

b. If this occurs, you will need to submit a support ticket.

c. Once you change the status to Temporary on the relevant NEWPR

Journal Entries, you can re-run the Re-open Fiscal Year Function.

d. Important Note – NEVER manually change or delete an NEWPR journal

entry. This will cause serious data corruption in your environment.

5. Run Year End Simulation as instructed on the log file.

6. Re-open the necessary periods to complete the adjustments. Periods must be re-

opened sequentially (if you need to make an adjustment in November, you’ll

need to reopen December first).

7. Follow the Close Fiscal Year steps to reclose the Fiscal Year.

how to guide for sage x3 · 1. go to financials > utilities > closing > year end...

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