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cats:procedures:closeyear [2022/06/29 16:27] – [After Closing the Year] wiki_admin | cats:procedures:closeyear [2022/06/29 16:52] (current) – [After Closing the Year] wiki_admin | ||
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At the end of every financial year, all information for that year should be verified for accuracy and checked against other records, such as those received from banks and auditors. Then the accounting periods should be frozen and moved to the history file to prevent users from making entries that change the year's totals. This is called " | At the end of every financial year, all information for that year should be verified for accuracy and checked against other records, such as those received from banks and auditors. Then the accounting periods should be frozen and moved to the history file to prevent users from making entries that change the year's totals. This is called " | ||
- | <note warning> | + | <note warning> |
+ | Make sure that the data in the current and end-of-year isolation is accurate before closing the year.</ | ||
==== Before Closing the Year ==== | ==== Before Closing the Year ==== | ||
The following steps should be made before closing the financial year in CATS: | The following steps should be made before closing the financial year in CATS: | ||
- Ensure that the information in the isolated area to be used as the year end is correct. If you have made any changes to the current area that need to be reflected in the isolated area, you will need to re-isolate or make changes in the isolated area.\\ | - Ensure that the information in the isolated area to be used as the year end is correct. If you have made any changes to the current area that need to be reflected in the isolated area, you will need to re-isolate or make changes in the isolated area.\\ | ||
- | - Post or delete all pending invoices dated from before | + | - Run the Accounting Recalculation in the end-of-year isolated |
- | | + | |
- | - Check that the G/L file contains the consolidation account number for Retained Earnings. Make sure the System Field for this account number says **'' | + | |
- | - Back up the data from the current | + | |
- Make sure the ending balances in the isolated area match the G/L trial balance. These balances will be brought forward as the opening balances in the beginning of the new year.\\ | - Make sure the ending balances in the isolated area match the G/L trial balance. These balances will be brought forward as the opening balances in the beginning of the new year.\\ | ||
- | - Run the Accounting Recalculation in the isolated period | + | - Post or delete all pending invoices dated from before |
+ | - Enter and post all accounting transactions dated from before the year-end close.\\ | ||
+ | - Check that the General Ledger has an account for the Retained Earnings consolidation entries. Make sure the " | ||
+ | - Back up the data from the current period and from the year-end isolated period.\\ | ||
- Run the Check Contracts procedure and, if needed, reindex all files. | - Run the Check Contracts procedure and, if needed, reindex all files. | ||
- **ALL USERS MUST BE OUT OF CATS BEFORE YOU BEGIN THE CLOSE YEAR PROCESS** | - **ALL USERS MUST BE OUT OF CATS BEFORE YOU BEGIN THE CLOSE YEAR PROCESS** | ||
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==== Automatic Changes Made by CATS When Closing the Year ==== | ==== Automatic Changes Made by CATS When Closing the Year ==== | ||
- | * **Loans** - Loan balances become opening balances. Inactive loans are deleted. | + | * **Loans** - Loan balances become opening balances. Inactive loans are removed. |
* **1099** - Recalculates all of the 1099 values for records within the year selected. | * **1099** - Recalculates all of the 1099 values for records within the year selected. | ||
- | * **Set up current charges** - The file for current | + | * **Set up current charges** - Current |
* **Set Account Balances to Opening Values** - Account opening period balances are set to the current balance. A/R and A/P and bank balances are updated. | * **Set Account Balances to Opening Values** - Account opening period balances are set to the current balance. A/R and A/P and bank balances are updated. | ||
* **Update History File** - G/L transactions for the period being closed are moved into the history file. | * **Update History File** - G/L transactions for the period being closed are moved into the history file. | ||
- | * **Purging Transaction File** - The G/L is purged of transactions from the period being closed. | + | * **Purging Transaction File** - All completed |
- | * **Setting Invoice Balances** - The opening period balance for any open invoices is set to the current balance. | + | * **Setting Invoice Balances** - The opening period balance for any open invoices is set to the current balance. |
- | * **General Ledger** - For the end of the year, the revenue | + | * **General Ledger** - Revenue |
* **Purchase** - Opening period quantities and amounts are set for purchases. | * **Purchase** - Opening period quantities and amounts are set for purchases. | ||
* **Sales** - Opening period quantities and amounts are set for sales. | * **Sales** - Opening period quantities and amounts are set for sales. | ||
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==== After Closing the Year ==== | ==== After Closing the Year ==== | ||
- | * Check that the isolated period has ending balances | + | * Check that the ending balances |
- | * [[cats:manual:accountmaintenance|Move the accounting periods forward one year]], so the current | + | * [[cats:procedures:accounting: |
* [[cats: | * [[cats: | ||