October 6, 2009

gptip42day - Year End Close - Sales

Closing the Fiscal Year in Sales updates Year-to-Date, Last Year, and Life-to-Date information in the Customer Payment Summary window and Customer Yearly Summary Inquiry window.

Closing the Calendar Year does not affect amounts in those windows but does update information in the Customer Finance Charge Summary window.

In preparation to close the Fiscal Year -

1.  Post all transactions for the current Fiscal Year.  If you need to enter transactions for a future period before closing the year, save the transactions in a batch but don't post it until after closing the Fiscal Year.

2.  Backup the company database.

3.  Perform a Receivables Aging (Tools>Routines>Sales>Aging) and print an Historical Aged Trial Balance as of the last day of the Fiscal Year.  Keep this report for your records.

4.  Close the Fiscal Year.  If your Fiscal and Calendar Years coincide, choose the 'All' radio button in the Year-End Close window.  If not, choose the 'Fiscal' radio button.  Click 'Process'.

Tools>Routines>Sales>Year-End Close

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5.  Close the Fiscal Periods for the Sales series (optional).  Tools>Setup>Company>Fiscal Periods.

6.  Close the sales tax periods for the year (optional).  When you close the Tax Year, accumulated totals in the Tax Detail Maintenance window are cleared and transferred to last year's tax totals.  (Note - you should close the Tax Year only after both Sales & Purchasing series are closed.)

Tools>Setup>Company>Tax Details

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Year-to-date tax totals can then be added for the new Tax Year.  Tax amounts entered after closing the Tax Year are added to the new year's totals.   

Tools>Routines>Company>Tax Year-End Close

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Refer to GP Help for further information on the effects of closing the Tax Year.

7.  If your Fiscal and Calendar Years do not coincide, close the Calendar Year at calendar year-end.  Post your Calendar Year transactions, backup your company database, then choose the 'Calendar' radio button and click 'Process'.

Tools>Routines>Sales>Year-End Close

* click image to enlarge

8.  Make a final backup of your company database.

Tomorrow we'll look at closing the Purchasing series, a process which is very similar to the Sales series close.

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