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If your company will be changing its fiscal year end, then several steps must be taken to make sure that AccuBuild will report this change accurately. Although there is a date field for the fiscal year end date that can be updated, you must first understand how the system views the data for the current fiscal year and the impact that the year end close will have on the data.
During the year end closing procedure, AccuBuild will always use the 12 months preceding the date as specified in the Fiscal Year End field to calculate the current year's activity. There are no 'short year' calculations when the company switches the fiscal year end date. For example, if a company's current fiscal year end was June 30, 2003 and is now December 31, 2003 then a normal year end close would be performed at June 30, 2003 but a close at December 31 will try to include all activity from January through December rather than from July through December. To ensure that the proper amounts are rolled, please follow these steps:
| 1. | Using the above scenario and assuming that June 30, 2003 has already been rolled, and you are now ready to close new fiscal year end December 2003, back up your company data through AccuBuild's Backup Data option. |
| 2. | Set up a new company and restore the backup of your data from Step 1. This will give you access to your existing data as it appears before the following adjustments are made. |
| 3. | Open the new company and print a trial balance as of December 31, 2003. Your fiscal year end in the new company will still be June 30, 2003 at this point. You will need to make sure that the trial balance totals to zero on all columns on the last page. If your trial balance is not in balance, then please contact AccuBuild's Technical Support Staff or your authorized AccuBuild consultant for assistance in reconciling this information before continuing to the next step. |
| 4. | Print a G/L Detail Report in account order for the period January through June 2003. Be sure to suppress the detail. Use this report to create a general journal entry dated June 30, 2003 to reverse the amounts for each account on this report. This includes amounts for both balance sheet and income statement type accounts. This activity will have already been included in the beginning account balances as of July 1, 2003. Be sure to proof your journal entry before posting to make sure that it foots to zero. (Note: Be sure to temporarily enable the 'Allow Prior Period Transactions' before posting.) |
| 5. | Print a Job Cost Capsheet - Job Totals Report with a Detail Cost Date Range of January through June 2003. This report will provide you with a summary of the detail costs for each job for the date range. Use the amount in the 'Total' field to create a general journal entry dated June 30, 2003 to reverse the amounts for each job on this report. We would advise creating a new job cost phase titled 'New FYE Adjs' with which to post these entries. Do NOT use a general ledger account number with the entries. This type of entry is a one-sided journal entry and the total of the journal should equal the opposite of the total costs for the date range as shown on the last page of the capsheet report. Post the journal. (Note: Be sure to temporarily enable the 'Allow Single Sided Journal Entries' before attempting to post the entries.) |
| 6. | Using the same Job Cost Capsheet - Job Totals Report, create another general journal dated December 31, 2002 to re-record these costs on the job. These costs need to be part of the job-to-date totals and must be considered part of the prior fiscal year costs based on the new fiscal year end date. Post these entries to the 'New FYE Adjs' phase for each job. Again, do NOT use a general ledger account number with the entries. This entry will also be a one-sided journal entry and the total of the journal should match the total costs for the date range as shown on the last page of the capsheet report. Post the journal. |
| 7. | Remember to disable the options that allow single sided journal entries and postings to prior periods. |
| 8. | Change the fiscal year end date to December 31, 2003 and the System Cutoff to December 01, 2003. The Payroll Cutoff date does not need to be changed if it is already set to a period in the current calendar year. |
| 9. | From the Ledger > Integrity Tests option, select the Update G/L Master. This will update the trial balance for all activity for the 'short year'. The activity for January through June will be zero so the YTD totals should represent activity from July through December. |
10. From the Job Cost > Integrity Tests option, select the Update Job Master. This will update the 'current year' job cost totals for the 'short year'. The activity for January through June will be zero so the YTD totals should represent activity from July through December. The prior year totals will include the reclassification of the January through June 2003 activity so that the job-to-date totals are accurate.
11. Print the trial balance and/or financial statements as well as the job cost reports that you would normally require before closing the new fiscal year end. Note: The 'New FYE Adjs' phase on each job should equal zero.
| 12. | Perform the System Administrator > Month End routine to close the year. |
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