Consolidation - Year end

When you run the year end process, the year to date balance of all Profit and Loss accounts is cleared down and your profit is transferred to your retained profit account. The year to date balance on your Balance Sheet nominal accounts is kept.

This has implications when you're consolidating in to a parent companyreporting company. This is because the balance of each account the last time you consolidated is kept, to make sure balances are not transferred more than once.

At the beginning of the new financial year, you need to clear this consolidated balance from your profit and loss accounts, but keep it for your balance sheet nominal accounts. To achieve this, you must clear the balance of all nominal accounts in the parent, clear the consolidated balances in the each subsidiary and re-consolidate.

To run the year end

The following steps are the actions you need to take in the parent companyreporting company and subsidiary companyschool.

Subsidiary: Make sure you've finalised the year in each subsidiary companyschool and run the consolidation.
Subsidiary: Complete the Year End as normal for each subsidiary companyschool.
Parent: Complete the Year End as normal for each parent companyreporting company.
Subsidiary: Clear consolidated amounts for each subsidiary companyschool.

This resets the consolidated balance back to zero for nominal accounts, P & L and Balance Sheet.
See how to do this
Open: Settings > Cash Book / Nominal Ledger > Clear Consolidated Amounts.
- Click OK.
Parent: Use Zero Balances to clear all transactions for the parent companyreporting company.

This clears all transactions from the parent company. You need to do this to remove the year to date value from your balance sheet nominal accounts.

Note - danger
This clears all transactions from this company database. Do not use this in a subsidiary companyschool.
See how to do this
Open: Settings > Cash Book / Nominal Ledger > Zero balances.
- Click OK.
Subsidiary: Run the consolidation.

This posts the year to date balance for all balance sheet nominal accounts back into the parent.

Note: Before you run the consolidation, open Accounting Periods and make sure period 1 is Open for the next financial year.

Tip: Run the consolidation several times until you see a No items to Consolidate message. This makes sure that all balances have been correctly posted into the parent.

The following steps are the actions you need to take in the parent companyreporting company and subsidiary companyschool.

Subsidiary: Make sure you've finalised the year in each subsidiary companyschool and run the consolidation.
Subsidiary: Complete the Year End as normal for each subsidiary companyschool.
Parent: Complete the Year End as normal for each parent companyreporting company.
Subsidiary - Make sure any new nominal accounts for Accumulated Fund Profit are linked to the parent.

As part of the year end process, Sage 200 automatically creates an account for Accumulated Fund Profit for each cost centre, if they don't exist already. If any new accounts are created, you'll need to make sure you link them to your parent companyreporting company.
Subsidiary: Clear consolidated amounts for each subsidiary companyschool.

This resets the consolidated balance back to zero for nominal accounts, P & L and Balance Sheet.
See how to do this
Open: Settings > Cash Book / Nominal Ledger > Clear Consolidated Amounts.
- Click OK.
Parent: Use Zero Balances to clear all transactions for the parent companyreporting company.

This clears all transactions from the parent company. You need to do this to remove the year to date value from your balance sheet nominal accounts.

Note - danger
This clears all transactions from this company database. Do not use this in a subsidiary companyschool.
See how to do this
Open: Settings > Cash Book / Nominal Ledger > Zero balances.
- Click OK.
Subsidiary: Run the consolidation.

This posts the year to date balance for all balance sheet nominal accounts back into the parent.

Note: Before you run the consolidation, open Accounting Periods and make sure period 1 is Open for the next financial year.

Tip: Run the consolidation several times until you see a No items to Consolidate message. This makes sure that all balances have been correctly posted into the parent.