Running the end-of-year process in SFM

How do I process an End Of Year in SFM?

Overview

SFM allows posting into two financial years simultaneously. This means that users do not need to finalise 2024 before starting to post entries into 2025. The end of year procedure will move the “Current Year” data into the "Previous Year". When complete, users can start posting into 2025 while allowing authorised users to keep on posting transactions into the previous year.  While the examples listed in the article refer to a financial year commencing 1st January, the same process can be applied to any financial year.

Year-End Process: Preliminary Checks

To ensure a smooth transition, please complete the following checks:
  1. Post All Previous Year Transactions: Ensure all transactions for the previous year have been posted. Once the End of Year is processed, the Previous Year will be archived, and will become read only.
  2. Transfer SIMS Data (SIMS Users only): Export all relevant data from SIMS to SFM: SIMS > Admin > SFM Interface > Export to SFM
  3. Clear SFM Gateway: Clear the SFM Gateway by importing any pending data: SFM > Current/Previous Year > Utilities > Import Gateway > Import
  4. Update Opening Entries: Update the opening entries from the previous year: SFM > Previous Year > Update Opening Entries > Update (option will be disabled if there are no updates required)
  5. Finalize the Previous Year: Finalize the previous year to prepare for the new year: SFM > Previous Year > Utilities > Finalize > Finalize
  6. Generate Reports: Generate all necessary reports from the previous year. Some reports such as the P&L report will no longer be accessible after the year is archived.
  7. User Log-out: Request all users to log out from all Shireburn Systems including SFM, SIMS and SFS.

Running the End of Year





The End of Year option is found in the Current Year > Utilities menu. The option is only available to those users who have access to the End of Year permission. This permission is automatically removed after the running of the End of Year program.




What happens in the End of Year procedure?

During the End of Year procedure the system will perform the following events in the respective order:
  1. Take a backup of the company.
  2. Check that the Yearly Profits for the Year and the Retained/Accumulated Profit account codes exist as balance sheet and set within the System Control Accounts.
  3. Run all validation checks for the previous and current year (if any validations fail, the system will stop the End of Year process).
  4. Checks if there is a balance brought forward in the Yearly Profits nominal account in the current year:
    1. 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.
    2. On confirmation by the user, the system will automatically post a journal entry between the Profit/Loss for the year and the Accumulated account.
    3. The user has the option to Cancel the process if required to enable further checking.
    4. Transfer the Nominal Ledger data from the Previous Year (where applicable) into the Archive Data.
  5. Transfer the current year nominal ledger data to the Previous Year.
  6. Calculate the opening balances for the new financial year and updates the previous year figures.
  7. Appends all debtors and creditors data from current year to the Archive.
  8. Reset year to date and update previous year turnover figures for debtors and creditors.
  9. Clears all the sales and purchases allocated entries from the current year.
  10. Update the accounting period for the new financial year.
  11. When complete, the system will remove the End of Year function permission.
  12. Run a Reindex.

Troubleshooting

There are a number of reasons why you will not be able to run the End of Year. The points below provides some troubleshooting solutions:

Problem: End of Year program menu option is not highlighted (greyed out).
Solution: This reason is that the current user does not having access rights to the ENDOFYEAR secure permission. Add this function from Admin > Groups & Permission > Highlight the Permission Group of the User > Click on the "Permission Available for" Tab > Highlight permission "ENDOFYEAR" > Add Permission to Group (CTRL + R).

Problem: Error: The Data Directory is in use.
Solution: This error usually occurs when users are still logged into the system. Check for Active Users: Contact your IT department to identify users from the server who may be actively accessing or locking files.  As a last resort, restarting the server hosting the SFM Data may resolve the issue.

Problem: Error: Update Opening Entries.
Solution: You need to update the Current Year opening balances by clicking on the Previous Year > Update Opening Entries option.

Problem: Error: Yearly Profit & Loss Account does not exist.
Solution: The End of Year function transfers the net balance of non-balance sheet items to a yearly profit & loss account. This error will occur if no Yearly Profit account (not Retained Earnings) has been defined in Support Files > System Control Accounts.

Problem: Error: Assets End of Year needs to be performed.

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.

    • Related Articles

    • Allocating unallocated entries before running the End Of Year

      After running the end of year in SFM, all outstanding entries including unallocated entries are brought forward to the new financial year. To minimise the number of these outstanding entries we suggest that one goes through all the entities that have ...
    • How do I process the Assets End of Year through SFM?

      In SFM, if the Assets module is enabled, you must complete the Assets end-of-year process before running the SFM end-of-year process. Running the Assets End of Year Navigate to: Previous Year > Assets > Assets End Of Year The system will then present ...
    • Do I need to Process an End-of-Year in SIMS?

      SIMS does not require an end of year procedures to be run. However, SIMS controls users to only allow posting of transactions, such as sales invoices, cash sales, adjustments and purchases, within a range of dates referred to as the Posting Period. ...
    • How do I update the opening balances after posting in the previous year?

      After the end of year run, SFM provides the option to authorised users to keep on posting into the Previous Year for the next 12 months. When users post in the previous year, SFM will trap this and makes available a function, 'Update Opening ...
    • 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 ...