Differences

This shows you the differences between two versions of the page.

--- cats:procedures:closeyear [2022/06/29 16:39] – [Closing the Financial Year in CATS] wiki_admin
+++ cats:procedures:closeyear [2022/06/29 16:52] (current) – [After Closing the Year] wiki_admin
@@ Line 44: / Line 44: @@
 ==== 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.
-  * **Set up current charges** - The file for current period inventory transactions is set up to include only those transactions with dates later than the closing date of the period.
+  * **Set up current charges** - Current period inventory transactions include only transactions with dates later than the closing date of the period.
   * **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.
-  * **Purging Transaction File** - The G/L is purged of transactions from the period being closed.
+  * **Purging Transaction File** - All completed transactions from before the current year are removed.
-  * **Setting Invoice Balances** - The opening period balance for any open invoices is set to the current balance. All details for open invoices, A/R, and A/P are retained.
+  * **Setting Invoice Balances** - The opening period balance for any open invoices is set to the current balance. Open invoices, A/R, and A/P carrying over from the prior year are retained.
-  * **General Ledger** - For the end of the year, the revenue and expense accounts are zeroed by summing them and placing the result into the Retained Earnings account. An isolated area may be used to obtain the opening period balances. The opening [[cats:procedures:accounting:glmaintenance|G/L balances]] are set to the current balance. If a path is specified for the opening period balances, then the ending balances in the G/L from the directory specified become the opening balances in the current directory.
+  * **General Ledger** - Revenue and expense accounts are zeroed by summing them and placing the result into the Retained Earnings account. Ledger account opening balances are copied from the end-of-year isolated area.
   * **Purchase** - Opening period quantities and amounts are set for purchases.
   * **Sales** - Opening period quantities and amounts are set for sales.
@@ Line 59: / Line 59: @@
 ==== After Closing the Year ====
-  * Check that the isolated period has ending balances that match the current period's opening balances.
+  * Check that the ending balances from the end-of-year isolated period match the current area's opening balances.
-  * [[cats:manual:accountmaintenance|Move the accounting periods forward one year]], so the current period is now Period 1 of the new year. Keep in mind that in isolated areas, the periods will be what they were before the you moved them forward.
+  * [[cats:procedures:accounting:accountingsetup|Move the accounting periods forward one year]] in the current area. The current area's Period 1 should be the first period of the new year (e.g. January 31). Be careful not to run this procedure in the isolated area. The end-of-year isolation should not be modified.
   * [[cats:questions:accounting:readaccountrecalc|Run an Accounting Recalculatio]]n in the current area to set the new periods and to check that no errors have appeared since you closed the year.