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Our company was purchased earlier this year so we eneded up with a 2-month stub year for 2010. 2011 was defined as March 2010 to March 2011, but now the new ownership wants to set the year end to November - which would make year 2011 run from March 2010 to November 2010 and year 2012 from December 2010 - November 2011. Needless to say that this is not ideal. Any suggestions on how to handle this?
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Thank you Victoria.
The best option at this juncture would be to extend the current year 2013 from July 1, 2012 to December 31, 2013.
Alan
Alan,
I have not tested this to be 100% certain, but I believe the year numbers must be in the right order. In other words, you cannot have 2012, then 1912, then 2013. If those are all the years you have, it could be 1912, then 2012, then 2013. But if you have years prior to 2012, that will not work either. So you would need to go back to all your prior years and renumber them one back. For example, if you started with Year 2010 which was July 1, 2009 to June 30, 2010, the new years would become:
Year 2009: July 1, 2009 - June 30, 2010
Year 2010: July 1, 2010 - June 30, 2011
Year 2011: July 1, 2011 - June 30, 2012
Year 2012: July 1, 2012 - Dec 31, 2012
Year 2013: Jan 1, 2013 - Dec 31, 2013
I have created two fiscal years for 2012. We need to perform two year end closing for the year 2012. Using the Fiscal Period Modifier.
Year 2012 = July 1 2011 to June 30, 2012 - historical year
Year 1912 = July 1,2012 to Dec 31, 2012 - open
Year 2013 = Jan 1, 2013 to Dec 31 2013
the original 2013 was July 1 2012 to June 30, 2013
After reconciling all of the years, the opening balance for 1912 is not the original balance from 2013.
I expected that the opening balances would be re-calculated for the stub year 1912. In fact the opening balances for 2013 starting Jan 1, 2013 remained the same as the opening balances when 2013 year started on July 1, 2012.
Any suggestions ?
Don't forget to consider your FRx or Management Reporter reports as well. Anything with YTD balances will include the additional stub period unless you modify them to subtract the stub period from the YTD balance. We accomplished this by adding to additional columns in front of each total and subtracting period 12 from YTD. Then we set the calculated column as the only one to print.
Thank you. This seems to be the approach.
We had a similar situation and the process we put together worked out well. Our company recently went from a C Corp to an S Corp which required us to change our fiscal year end from 06/30 to 12/31 and also to have 6 month additional stub year for tax reporting purposes from 07/01/2010 - 12/31/2010.
We used the Professional Services Toolkit (PSTL), specifically the fiscal period modifier to delete our fiscal period setup and then recreate it with an 18 month year. Fortunately we had not performed a fiscal year end close of the financial module for 2010 so that allowed us to make 2010 18 periods. You will need to recreate all fiscal years since using GP and then reconcile the modules so your summaries are correct and the GL10000 is updated with the correct open year. If your using budgets you would also need to export then reimport revised budgets reflecting the additional months.
Yuri,
There is a tool you can purchase from MS (part of the Professional Services Tools Library) called Fiscal Period Modifier - it will let you 'rename' your years. With this tool you can rename old, historical years which may not be as important, so that your new year can actually be called 2011.
So, for example, working backwards you would have:
Year 2011 = Dec 2010 - Nov 2011
Year 2010 = Apr 2010 - Nov 2010
Year 2009 = Apr 2009 - Mar 2010
This isn't about the number of "closes" it's about a fiscal period called 2012 for a calendar period starting in 2010 and ending in 2011 (and oviously moving forward the year is always ahead). It may be fine for the system (I think the year is more of label than anything else) but it doesn't make sense and could lead to future grief. One idea was to name the next fiscal year 9999 and then get back to proper the year after - but that too seems wrong (if even possible).
If Finance and Accounts don't have any issue why this should be an issue?
They are the owners and responsible to the internal and external world and authorities.
For us ( to support) it should not be a matter, even if they want to close it every month. What effect it would have on an or any appliation?
I think a judgement ( what is worng or right) by a support person will be crossing the line and there is no such law exists to stop anyone from closing the books any time.
This was my initial suggestion, but no, they quite opposed to it. They would prefer to create a new company if they have to. I'd rather not.
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