Preparing
for Year End in Finance
To
assist in preparing for Year End, SSA Global Baan Customer Support has created
a document, see link below. The
information in this document will, hopefully, address any unforeseen situations
and point to areas in Finance that must be reviewed prior to Year End close.
The
document titled "Year End Close Process 2003" contains a list of
steps that should be performed prior to running the Year End process. It is recommended that these steps be done
now rather then at the time of Year End.
The
information in the "Year End Close Process 2003" document is derived
from cases typically seen in conjunction with the Year End process. It is not intended to be a complete list of
everything required in conjunction with Year End.
Should there be any questions please contact Finance Customer Support at 800-925-2226.
PRE-YEAR END CHECKS/STEPS:
1.
Depreciation
has been run (if applicable), is correct and has been posted.
2.
All
Transactions for the year to be closed should be posted/entered and finalized.
No entries can be made to a closed year.
Finance Batch Related:
What to Do |
Session to Use |
Special Settings |
Frequency |
|
Finalize
Batches |
tfgld1110m000 |
All |
Daily |
|
Check
for erroneous batches |
tfgld1506m000 |
NA |
Weekly;
Daily the week prior to month end |
|
Run
rebuild |
tfgld3206m000 |
|
Monthly |
Finance
Other:
What to Do |
Session to Use |
Special Settings |
Frequency |
|
Control
Account Checklist ACP to ensure open items matches ledger |
tfacp2415m000 |
Wide
open except Print Differences Only = Yes |
Monthly |
|
Control
Account Checklist ACR to ensure open items matches ledger |
tfacr2415m000 |
Wide
open except Print Differences Only = Yes |
Monthly |
|
Print Receivable Invoices Checklist to ensure AP
Accrual Account matches ledger (requires other sessions to be run if not used
on a regular basis; see “Informational solutions” below if unfamiliar with
the sessions involved in this process.) |
tfacp1438m000 |
Wide
open except Print Differences Only = Yes |
Monthly |
|
Print Receivable Invoices |
tfacr1432m000 |
Wide
open except Print Differences Only = Yes |
Monthly |
Finance Integration Related:
What to Do |
Session to Use |
Special Settings |
Frequency |
|
Post
all Integrations |
tfgld4200m000 |
Wide
Open for Current Fiscal Year |
Daily |
|
Check
for Unposted and Erroneous Integrations |
tfgld4410m000 |
Wide
Open except set Trans. Status = Unposted to Erroneous |
Weekly;
Daily the week prior to month end |
|
Check
Integration Tables |
otfcor0615 |
NA |
Monthly |
Resolve
all Integration errors:
Common
Integration Errors:
Error |
Remedy |
|
Cannot
find Dimension Code for XXX, mandatory link… |
Setup
required in Maintain Options by Integration Element (tfgld4121m000) |
|
Invalid
dimension |
Setup
required in Maintain Dimension Ranges by Ledger Account (tfgld0109m000) |
|
Ledger
Account not found |
Setup
required in Maintain Inventory and WIP Accounts (tdinv8150m000 or if PCS
related in tipcs8150m000) |
|
Already
Open Item Present |
Log
a case with Support |
|
Ledger
Account not found tdsls600/tcmcs036 |
Setup
required in Maintain Tax Codes by Country (tcmcs0136m000) |
|
No
additions present of this transaction |
Log
a case with Support |
|
Transaction
type not found |
Setup
required in Maintain Transaction Types by Transaction Origin (tfgld4126m000)
and Maintain Options by Integration Element (tfgld4121m000) |
|
Document
not reserved |
Log
a case with Support |
|
Batch
being used |
Log
a case with Support |
3.
Set
up the Year End Balancing Account, Interim Closing Account and a transaction
type with the Transaction Category = Journal Voucher and an update mode of
finalization in session "Maintain Company
Parameters (tfgld0103m000)" on form 3. *
4.
Ensure that all account types are
correctly set up as Balance Sheet or Profit and Loss
5.
Period 1 of the New Year (the year after
the year being closed) must be open for all period types, Fiscal, Reporting and
Tax.
6.
The
debit and credit balances match. Run
session tfgld6403m000, Print Unbalanced Ledger Accounts During Year End to
verify they are in balance.
7.
Finally
Close all modules for all periods for Fiscal, Reporting and Tax EXCEPT for the
GLD module for the LAST period, Fiscal, Reporting and Tax.
8.
Update
all the year end close objects with the latest solutions**
Rebuild sessions:
tfgld3201m000, tfgld3202m000,
tfgld3203m000 & tfgld3206m000
Year End sessions: tfgld6201m000, tfgld6202m000, tfgld6203m000,
Other sessions:
tfacp2415m000,
tfacr2415m000, tfacr1432m000, GRINYA/GRNI, 1099’s
9.
Run
a rebuild (optional but recommended) tfgld3203m000
10.
Create
a history company to which the finalized transactions are to be moved. This history company is defined in the session
"Maintain Company Parameters (tfgld0103m000)"
11.
Ensure
that the temp db space available is at least 4 times the size of the
oas_docline table.
12.
Verify
that there are no documents on the oas_dochead with a status of 77.
13.
IMPORTANT - Ensure that the system has been backed up and the data verified
immediately preceding running yearend.
1.
CLOSE YEAR PROVISIONAL (tfgld6201m000)
This
process is the transfer of balance sheet balances to the new fiscal year before
you are ready to do a final close. This session is a check option. If
results are OK, then continue the year-end procedure. This
will enable you to produce financial statements in the new fiscal year with
opening balances from the prior year. No opening balance transactions are actually
created, but two history tables (tfgld203 and tfgld206) are updated with
opening balances for the new year (tfgld004.year + 1)
Period
status can be closed or open, batches can be in a non-finalized status. The key with the provisional close is that
it must be continually rerun as you finalize entries in the prior year. Baan will update the balance sheet balances
each time you rerun the provisional close and repost the prior year profit to
the interim closing account defined in the Company Parameters.
Process
the Close Year Provisional session, and Baan will ask how you want the balances
printed (By Ledger/Currency). Select
printer and Continue. After the process
has completed, a report will print showing the amounts transferred as provisional
opening balances. The
amounts of the opening balance sheet for the next year are based on the opening
balance sheet of the current year and the amounts of the current year that were
posted to the history. The provisional
closing still allows transactions to be processed for the current fiscal
year.
It is
important to mention that only one year can be provisionally closed. It is not
possible to provisionally close 2 years in a row. The previous year needs to be
finally closed and the yearend processing executed before the next year can be
provisionally closed.
2.
AUTOMATIC
BALANCING OF PROFIT AND LOSS ACCOUNTS (tfgld6202m000)
This
session automatically reverses balances in Profit and Loss Accounts so that the
total profit or loss amount becomes zero when the new opening balance sheet is
created.
Definition
of Balancing of Profit and Loss:
Subtotal The total of all Profit and Loss Accounts is recorded in
one combined entry. A P&L interim
account with sublevel = 0, no dimensions and no integration options, is
required. The subtotal option leaves
the balances in the individual accounts.
The P&L accounts will start with a zero balance in the new year.
Individual The interim profit and loss amounts are entered by individual
Profit and Loss Account. When using
this option, a correction period must be defined.
When the auto-balancing session is executed, the
user defines both the date and the period the entry should update. If a correction period is not used (setup in
Maintain Periods), the last period is then period twelve, all the P&L
balances will be reversed in period twelve.
The ability to run Financial Statements and the Trial Balance in period
twelve for P&L accounts is no longer
possible because the balances are zero.
If the individual account is the option selected, the user should have
defined a correction period for fiscal and reporting periods (if used), and the
auto-balance entry should be made to this period.
Bottom line if no correction period is identified do
not use individual accounts option.
The
system will check all Profit and Loss Accounts with Sublevel 0 that have been
incorporated into the history data. If
it appears that the balance of a Profit and Loss Account is not 0, then a
transaction is created to reverse this amount. The session will create a batch
for last open period, which will zero out the Profit and Loss Accounts, either
individually or in total depending on the above parameter setting and the
equity account is posted with the profit/loss result.
To
Process, enter following information in Automatic Balancing Of Profit and Loss
Accounts session:
Transaction
Type: Y/E
Transaction
Entry Date: Last day of
fiscal period
Statutory
Document Accept Default
Complementary
Document Accept Default
Fiscal
Period: Last
fiscal period
Reporting
Period: Last
reporting period
Tax
Year: Last
Tax Year
Tax
Period: Last
Tax Period
Transaction
Reference: Balancing of Profit and Loss Accounts (user defined)
Batch
Reference: Balancing of Profit
and Loss Accounts (user defined)
Click
on balance. A batch will be created in the final fiscal
period, which will need to be finalized before completing the final close.
Insert a new Finalization Run. Make
sure to select the correct year, when creating the finalization run.
User
must now final close all remaining fiscal, reporting and tax periods to
continue with Close Year process.
3.
CLOSE YEAR (tfgld6203m000)
This
is the FINAL CLOSE of the system. This
process will carry over all finalized transactions to the history company
defined in the company parameters dependent on the number of years you have
indicated to store history for in Maintain Group Company Parameters. If you opted to store years > 0, then the
finalized transactions are not deleted and will not be carried over to the
history company. The user can check the finalized transactions in the live
company for one single year if the option to store years is equal to
"1". If the value is equal to
0, then once the final close is complete the user will no longer have
visibility to finalized transactions.
The user will have to access the history company to review any prior
year activity. Prior year balances for
financial statement reporting are still available.
The
session:
uses tfgld201 and tfgld203 to check if debit and credit are
balanced.
uses tfgld206 and tfgld205 to post new
opening balances.
Click
on Continue process. Baan will flash a
message that it is checking to see if the year can be closed. If Baan finds no errors a screen titled
"Close Year" will appear.
Complete the following:
Transaction
Type: OPB (Update mode for this trans type MUST BE
Finalization
Statutory
Document: Baan will
assign
Complementary
Document: Baan will assign
Transaction
entry date: Start date of
New Year
Document
Date: Same as
Transaction Date
Fiscal
Period: 1
Transaction
Reference: 200x Close Year
- OPB (user defined as the New Year OPB)
With
Batch Reference: 200x
Close Year - OPB (user defined as the New Year OPB)
Baan
will then create a batch in fiscal period 1 of the New Year, which must be
finalized. This batch will post the
opening balances to the balance sheet accounts. Make sure to select the correct year, when creating the finalization
run.
At
this point the year's profit has been posted to the Interim Closing Account
defined in the Company Parameters. If this is not the retained earnings account
a journal entry will need to be created to move this.
ADDITIONAL YEAR END SESSIONS:
Please
contact Baan Support for assistance archiving transactions.
Please
contact Baan Support for assistance archiving VAT transactions
*if
your Maintain Company Parameters (tfgld0103m000)" session does not
require a transaction type on form 3, you have an old form and will need to
update the form and the object.
** To find the latest solutions for these
sessions, go to the Baan Support Knowledge Base. Search for latest solution for a session (found in the components
box on the lower right) and then enter the session and your version. The list returned will have the latest
solution at the top of the list. Review
the instructions for entering the session found below the input boxes.