46,532
Like
Share
ReportI was going to wait until nearer the end of the year to discuss this topic but a very good friend of mine at Kissimmee Utility Authority asked me to cover the topic now as their fiscal year ends September 30. We'll cover these procedures over the next few days because it's too much to cover in one post. So here we go with an overview for today's installment.
First, it's important to know that the only series in GP that has a true year-end close is the Financial series. Closing the year in all other GP series' only updates annual statistics for the year being closed and clears the annual statistic accumulators for the coming year.
These series in GP have a year-end close routine associated with them -
- Financial (the big one)
- Sales
- Purchasing
- Inventory
- Fixed Assets
- Payroll
Other series, such as Project Accounting, Manufacturing, Field Service, Returns Management, etc., do not have a year-end close routine, although they may have routines that you would want to run at year end. For instance, Manufacturing has a 'Roll-up and Revalue' routine that resets standard costs to prepare for the new year. However, it's a routine that can be run anytime during the year that you wish to reset standards, so it doesn't qualify as a year-end closing process.
We should mention here that in the Sales and Purchasing series' there are two types of year-end close (actually 3, if you include the Tax Year close), the Fiscal Year Close and the Calendar Year Close. In many companies, the fiscal and calendar years coincide so the fiscal and calendar year closing will be done simultaneously. However, in those companies (go KUA!) that have a fiscal year that does not end on 12/31, the two closes will be done separately. We'll discuss the differences in those closes in more detail later.
GP Help recommends closing the series in the following order -
GP Help recommends closing the series in the following order -
- Inventory
- Sales
- Purchasing
- Fixed Assets
and then the Financial series last. Payroll is an independent close that creates a file of annual wage information from which (in the U.S.) W2 and 1099 statements are produced. The Payroll close will always be done at the end of the calendar year.
Okay, now that we have the overview out of the way, on Monday we'll start with closing Inventory. Have a great weekend, friends!
*This post is locked for comments