Year-End Closing Workspace

Use this workspace to close your books and calculate annual results for one or multiple companies.

When you close the fiscal year, Maconomy prints a report for each company that shows the year-end closing for each account with posted entries, and the year-end result.

Use the Selection Criteria island to specify a range of companies and a fiscal year. Maconomy performs the year-end closing for those companies that match the selection criteria and have the specified fiscal year. You define each company's fiscal in the Company Information workspace. If a company has a parent company, Maconomy uses the parent company's fiscal year as the company's fiscal year.

It is important that you set the fiscal year template correctly before you close the fiscal year. For example, if your company wants to calculate the year-end result for 2014 in April 2015, you must set the fiscal year template to the one that covers 2014 in the Company Information or System Information workspace before you close the fiscal year.

Before you close the fiscal year, you must post all journals that are relevant to the period.

After you close the fiscal year, you should update the fiscal year in the Company Information workspace in the General Ledger module or the System Information workspace in the Set-Up module.

Effect of Year-End Closing

When Maconomy closes the fiscal year, the following actions occur:

• The year-end result is transferred to the Retained Earnings Account, which you define by means of a posting reference in the System Information workspace in the Set-Up module.

  To perform this step, Maconomy takes the total of all closing balances for all P&L accounts in the old fiscal year and transfers them to the opening balance of the Retained Earnings Account in the new fiscal year.

  After you perform a year-end closing, Maconomy continues updating the Retained Earnings Account if you make entries to the closed year. This ensures that the Retained Earning Account amount that appears on G/L reports reflects any entries made to the closed year.

• Opening balances on balance sheet accounts in the new fiscal year are set to the closing balances from the old year. As in the case of the Retained Earnings Account, Maconomy keeps these opening balances updated if you subsequently make entries to the closed year.

  Maconomy updates the current balance on all P/L Accounts if the system parameter Update balance on account information card is marked.

  The current balance is is shown in the account information card. The current balance is calculated as the sum in enterprise currency of all finance entries that belong to the acoount in the the fiscal year following the closing year.

• If you use a local chart of accounts (you defined a local dimension in the System Information workspace), Maconomy also performs a year-end closing for the local chart of accounts. Maconomy takes the total of all closing balances for all local charts of accounts linked to a P&L account in the old fiscal year, and transfers them to the opening balance of the local chart of account used for Retained Earnings Account in the new fiscal year.

  To determine which local accounts should be considered P&L accounts (and thus which local account balances should be transferred to the Retained Earnings account and reset), Maconomy checks the Derived Account No. field on the information card for each local account. The local account is considered to be of the same type as the derived account.

  By selecting the appropriate layout, you can have the report show the year-end closing amounts of either the global accounts or the local accounts. However, if a local chart of accounts has been specified in the System Information workspace, Maconomy performs year-end closing for both global and local accounts, regardless of your layout choice.

Reprocessing Year-End Closing

You can process any number of year-end closings for a given year, and you can process them at any time. Maconomy calculates a new year-end result, ignoring earlier results, including previously calculated opening balances for the Retained Earnings Account and other accounts.

It is important to run a new year-end closing if you make back-dated entries to the closed year, so that your year-end closing report shows current information.

If you reprocess a year-end closing for a fiscal year that lies several years back, you must also reprocess year-end closings for the years in between. Otherwise, the balances for intervening years will be incorrect.