How do I finalise the previous year?
Overview
SFM allows posting into two financial years simultaneously. This means that users have the option to finalise the previous year (during the current year) and at the same time keep on posting in current year. The Finalise Previous Year procedure will close the previous year from further postings. If it is required to post any entries after the year was finalised, there is a permission function that will allow authorised persons to un-finalise the previous year.
Finalising the Previous Year
The Finalise Previous Year option is found in Previous Year > Utilites > Finalise. The option is only available to those users who have access to the Finalise Previous Year permission.
If you don’t have access to the Finalise option (it is greyed out), add the secure permission from the Groups & Permissions option under the Administration menu. This is done by clicking on the permissions available tab sheet , selecting the permission having the code “FINALYEAR” and then clicking on the Add Permission to Group button (circled in red) or pressing CTRL+R on the keyboard.
What happens when you Finalise the Previous Year?
During the Finalise of the Previous Year procedure the system will perform the following events in the respective order:
- Check that a Yearly Profits (not retained) nominal account exists as a balance sheet item and set within the System Control Accounts. This account is not the Accumulated Profit & Loss / Retained Earnings account.
- Run all validation checks for the previous (if any validations fail, the system will stop the Finalisation process).
- Checks if there is an opening balance brought forward in the Profit for the Year nominal account in the current year:
- If a balance other than 0 exist, the system will prompt the user to select the Profit & Loss (Accumulated) nominal account as shown in the screen shot below.
- On confirmation by the user, the system will automatically post a journal entry between the Profit/Loss for the year and the Accumulated account.
- The user has the option to Cancel the process if required to enable further checking.
- Runs the Update Opening Entries procedure.
- Closes all the postings in the Previous Year.
Why isn’t it Working?
The table below provides some troubleshooting solutions:
Problem: The Finalise menu option is not highlighted (grayed out).
Solution: This reason is that the current user does not having access rights to the FINALYEAR secure permission. Add this function from the Groups & Permission option under the Systems Administration menu. If after having added the permission, the End of Year menu option is still unavailable, then you need to update the Current Year opening balances by clicking on the Previous Year > Update Opening Entries option.
Problem: Yearly Profit & Loss Account does not exist.
Solution: If the Profit & for the Year or the Accumulated/Retained Earnings Account are not defined in the System Control Accounts, the process will not run.
Problem: Data Validity Failed.
Solution: This indicates the existence of Invalid data and requires our support team to fix this. Please send an email to support@shireburn.com and paste the Validity errors in the email.
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