YEAR END PROCEDURES
SPECIAL NOTE:
If your year ends September 30th, please change all references of 12/31 or December to 09/30 or September. Run annual payroll reports after the last physical payroll of the current year.
Payroll Year-Ending After posting the last day’s payroll for the current year:
•Run normal Payroll
•Run normal Quarterly Payroll reports
•Run W-2s and electronic W2 file (unless your year ends on 09/30)
•Run any annual Payroll reports needed (unless your year ends on 09/30)
•In Payroll Constants: Payroll Year Dates update your Payroll Year Start Date
•Begin posting new year's payroll
After December 31st:
•Close December as you would any other month
Start New Year:
•Change Payroll rates if necessary
•Run Equipment Rental Update to update new year’s equipment rates before posting January time cards
•Update Annual Banks as required
•Post in the new year as desired
•The old year can be closed at your leisure without holding up your new year's postings since reports are date-sensitive
Closing the old year (make sure you use 12/31 – or 09/30 – for the effective date!)
•Post accounts payable bills for goods received in the old year to the old year simply by using 12/31 (or 09/30) as the effective date. Post new year bills to a new year effective date.
•Complete Schedule III and IV of the supporting schedules (Fringes & Cost of Roads).
•Make up T/Vs to spread Fringes and CORD. Fringes Spread and Cost of Roads Spread help a lot with this.
•If you spread tire costs, run EQUWHEEL. Show on T/V Totals posted, but do not post again.
•From the old year's Capital Outlay costs, make up a T/V to record the old year's Capital Additions to the Asset and Equity accounts.
•Run the Fixed Assets programs.
•Make up a T/V to remove Fixed Assets sold in the old year.
•Post any miscellaneous T/Vs, such as adjusting A/R to actual, adjusting Inventory to physical, etc. Record January’s MTF in December, FAS adjustments, use of Forest Funds, and any corrections or adjustments needed.
•Run final reports for Annual Report.
•After posting auditor’s adjusting entries for the old year, run Post Balances Forward (under the General Ledger menu) after closing the old year to bring asset and liability account balances to the first day of the new year and to create the closing entries for expense and revenue accounts. (See Year-End General Ledger Procedures.)
NOTE: It is very important that you use 12/31 (or 09/30) as the date for your adjusting entries!
Payroll Year-End Procedures
•Complete the last payroll for the year, including checks, journals and any reports.
•Do your quarterly reports including 941 Employer’s Quarter Tax return, 941 Employer’s Schedule B, UC-1017 and UC-1020.
•Do the W2s (unless your year ends on 09/30). Run first on plain paper to check accuracy.
•In Employee Maintenance, change inactive employees to INACTIVE status. Update active employees’ withholding allowances, if necessary.
•If applicable, post payroll time through December 31st. If you do not need to post up through December 31st, just backup and close later.
•Look at the Accrued Payroll Account to get the year end accrued payroll amount (remember to do this step if your fiscal year ends on September 30th).
•Do not post the next year’s payroll until you have changed the Payroll Year Start Date in the Payroll Constants: Payroll Year Dates program.
•Do not post time cards dated 01/01 until Equipment Rental Update has been run.
•Run PR Bank Balances report.
•Run PR Bank Liability report. Depending on your union contract and policy, add the old year's Vacation and Sick using Bank Calculation.
Equipment Year-End Procedures
•After the last posting, run the Equipment Hours Report.
•See "Fixed Assets Year-End Procedures" to complete the Equipment Year-End process.
•Run Equipment Wheel Hour Calculation.
•Run Equipment Questionnaire Calc (profit and loss).
•Run Equipment History for file.
•Run Equipment Rental Update after State Rental Rates.INI file is received from Cogitate. Do this before posting time cards dated 01/01.
•Run Equipment List in State Code sequence to submit to the State for approval.
Inventory Year-End Procedures
•Take a physical inventory. Make sure of cutoffs.
•Check with your auditor on appropriate procedures.
•Use Inventory Post to change quantities and amounts in inventory.
•Run the Inventory Print report for your year-end balances and file away.
Suggested Fixed Assets Year-End Procedures
(Do these procedures last)
•Run Fixed Assets Maintenance and enter Disposal Dates and New Purchases (900 Accounts).
•Run Fixed Assets Calculation with 12/31 (or 09/30) as the "through date."
•Run FA Status or FA Activity to check and see if the amounts calculated look reasonable.
•Run Equipment Profit and Loss for the new year.
•Run Equipment History to check the YTD Depreciation.
•Run Equipment List in State Code sequence.* At this time, you should be able to make up Transfer-Vouchers for:
oCapital Additions
oReserve for Depreciation
oDepreciation
* Fixed Assets Calculation automatically posts the depreciation to the General Ledger File.
•Do the Equipment Expense Page of the Annual Report using Equipment Questionnaire Calc.
General Ledger Fiscal Year-End Procedures
The following procedures are set forth here as a guideline for various methods you may use to perform your fiscal year-end closing.
Closing After Auditor’s Adjustments
This method for performing your fiscal year closing does not really close your accounts: Your asset and liability accounts will remain "true" (e.g., the balances will continually be updated); however, your revenue and expense accounts will still carry your old year’s balances and be increased by the current year’s postings on trial balance reports until the actual closing of the old fiscal year is performed by running the Post Balances Forward program (under the General Ledger menu).
Continue your postings for general ledger adjustments, due to/due from entries, payroll entries, inventory, and accounts payable entries as you normally would. When your audit is concluded and you’ve received a list of adjustments from your auditor, post those adjustments with the GL Post program using the last day of your old (unclosed) fiscal year for the Effective Date. After posting these adjustments, run the Post Balances Forward program to close your expense and revenue accounts and to bring your asset, liability and equity balance accounts forward into the current fiscal year.
Posting Balances Forward
All clients must run the Post Balances Forward program at some point during their new fiscal year.
Year-End Procedures Summary
The only thing you need to be aware of is that at some point after your fiscal year closes, you will have to run the Post Balances Forward program.
Printing New Fiscal Year General Ledger Reports
Until you run the Post Balances Forward program, any general ledger reports you need to run will have to be based on your prior fiscal year’s start date.