Year end

Note: Before performing year end, you should ensure that the final period end for the financial year has been completed. This ensures that all the necessary postings have been made in the ledgers.

About the year end

The Year End routine prepares the Nominal Ledger for the new financial year, as well as the Sales Ledger, Purchase Ledger and Cash Book by setting the period number in all modules to 1 (one).

The routine produces a balancing journal (the difference between the debit and credit balances on each Profit and Loss account) that represents the retained Profit and Loss for the year and posts the value to the accumulated profit nominal account.

Note: A report is produced showing the credit and debit year to date values for each account and the value of the entry made to the account for Profit and Loss. This report should be retained for auditing purposes.

You run Year End at the end of the current working year, in order to tidy up your system and move forward into the new year.

The routine has the following effects on nominal accounts:

Balance Sheet Profit and Loss

This period's figures are set to zero.

This period's figures are set to zero.

The year to date balance is carried forward.

The year to date balance is set to zero.

The balance this year figures are moved into the balance last years figures. Then the balance this years figures are set to zero.

The balance this year figures are moved into the balance last years figures. Then the balance this years figures are set to zero.

 

A balancing journal representing the retained Profit and Loss is posted to the Accumulated Profit nominal account.

Note: Consolidated ledgers require additional tasks to those described in this section.

To archive or remove your previous years transactions, use the Nominal Ledger Account Maintenance option.

Before you begin

You must have:

  • Ensured that at least one backup of your data has been made.

Note: Transactions for the new year can continue to be posted in all ledgers, as Sage 200 is date sensitive; it retains transactions in the Nominal Ledger until the appropriate ledger period is reached.

  • Closed periods correctly for all Sage 200 modules. This includes reconciling your debtor and creditor control accounts as well as producing reports.
  • Ensured all transactions dated in the current year have been posted.
  • Ensured all normal period end tasks have been carried out, up to the final period.
  • Checked the integrity of account balances by running the Balance Ledger routine.
  • Made any corrective postings on the advice of your accountant. This needs to be done before the periods are closed.
  • Printed the final Trial Balance.
  • Printed the Profit and Loss and Balance Sheet financial statements.
  • Printed all other reports required in the Nominal Ledger, such as budget reports, transaction listing, and the deferred postings list.

Note: You may want to check with your accountant or auditor which reports are required.

Perform the year end

Open: Nominal Ledger > Period End Routines > Year End.

  1. Confirm your final reports have been printed by selecting the Year end reports confirmation boxes.
  2. Click OK to proceed.
  3. Once year end processing is complete, you are prompted to open the accounting periods for the next financial year.

    If you don't want to do this now, you can do it later using Maintain Accounting Periods.

    • Transactions for the new financial year will not appear in the Nominal Ledger until you open the accounting periods for that year.

    • When you open the first period in the new financial year, all eligible transactions will be posted to that period, including any unposted transactions from the previous year.

Once this has completed, we recommend that you run the Nominal Ledger Account Maintenance option (Nominal Ledger > Period End Routines > Account Maintenance). This will archive or remove your previous years transactions, and updates the brought forward balance on your accounts.

If you do not run Account Maintenance, the brought forward balance on your accounts will be updated the first time you run the Verify Data option in the new financial year.

Outcomes of the year end

Note: Take a backup of your Nominal Ledger data immediately after running the Year End routine and before you begin making postings in the new financial year. Also print a Trial Balance and check the account balances in the report before you starting entering transactions for the new financial year.

Once you have run the Year End routine you can only make postings that affect the last year balances using the Previous Year Journal Entry routine.