Process the Year End

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The year end process in IRIS Financials is unique because it is not a completely final process. Further year ends can be run until the financial year represents the final audited picture.

Processing the year end consists of the following processes:

1. Transferring Balances

2. Rolling Forward Balances

The year end processes consist of the following transactions:

1. Transfer of all income and expenditure nominal balances for the year to be closed into the Current Year Surplus/Deficit Balance Sheet nominal. The core nominal is 9900. This transaction is referenced with the document type YE and is advised to be processed in period .98 of the year to be closed.

2. Clear down of all balances from the Balance Sheet nominals for the year to be closed. These are referred to as carry-forward balances. This transaction is a separate YE document to the journal created in the previous step and this should be processed in period .99 of the year to be closed.

3. Re-entry of the carry-forward balances from the previous year to the Balance Sheet for the start of the new financial year. This transaction is carried out using a third YE document, which should be processed in period .00 of the new financial year.

The end of year process is separated into two parts:

1. Part 1 – transfers all the balances from trading nominals into a surplus/deficit nominal in period 98.

2. Part 2 – Rolls forward all balance sheet nominals into period .99 and reverses these into period 00 to form the opening balances for the new financial year.

The year end process must be carried out separately for each location within an establishment/organisation.

Before starting the year end process we recommended you check the following:

• The closing position of your trial balance is correct. Running a trial balance with the period criteria set to 'less than or equal to - period 12' should give you the closing balances. (Some organisations may also use period .97 as the final period). For more information, please see Running a Trial Balance.

• Ensure there are no intercompany differences and that the individual trial balances for each location balance to zero at the closing position. For more information, please see Investigating Location Differences and Checking all Locations Balance to Zero.

• Ensure that applicable accounting periods (periods .98 and .99 for the current financial year and period .00 for the next financial year) have been created. For more information, please see Manually Adding Accounting Periods or Adding Accounting Periods Using the Populate Period Year Wizard.

• Ensure that all users are logged out of all modules before running the audit. Once the audit has been run, without errors, users can log back in. If you are a PS Cloud customer, you can log your users out remotely. For more information, please see Logging off PS Cloud Users.

Back Up the Live Database

It is advisable to take a backup of your Live database before starting the end of year process. If you use PS Cloud, the backups are automatically taken each evening (including weekends).

If you do not use PS Cloud, then carry out a system backup in the usual way prior to starting the year end process. For more information, please see Backing up the Database.

Part 1 - Transferring Balances

Part 1 of the year end process transfers all income and expenditure nominal balances from the current accounting periods .01 to .12 into the current financial year surplus/deficit nominal in period .98.

1. Select Modules, then select Year End.
   
2. The PS Year End Processing dialog is displayed. Transfer Balances is selected by default in Select Type of Processing.
   Ensure the criteria selected for year end are reflective of your chart of accounts and database.
3. In the Destination panel, select Drill (...) in Nominal, then double-select to select AST9900 Surplus / (Deficit) For The Year (where AST represents the location of the nominal) from the List of Nominals window.
   
4. In the Select Entries to Process panel, select Process at Nominal/Account Level, then select the required financial year from the Year to Process drop-down list.
   
5. In the Document Selection panel, select ASYE (where AS represents the location code of the document type) from the Type drop-down list, select the end date for the current financial year from the Date drop-down calendar, then select Drill (...) in Period, then double-select to select period .98 for the current financial year from the List of Periods window. Then select Options.
   The reversing panel is greyed out and is only used in Part 2 of the year end process.

6. The Options dialog is displayed. Select Drill (...) in the first and second Nominal Range from fields, then double-select to select the trading nominals for the location for which you are processing the year end from the List of Nominals window, e.g. AST1000 to AST8230 (where AST represents the location code of the nominals).
   The trading and balance sheet nominals included are based on when you run the year end process.
   If a nominal range is not selected, the year end runs for all locations in the system and transfers balances into onelocation’s surplus and deficit nominal. If this happens, you need to cancel the year end document created and start again.

   If using version 6.0.28 or higher of the PS Year End Processing module, as the Trading and Balance Sheet nominals are automatically identified when processing, in Nominal Range from you must select nominals 1000 to 9900.

7. When you have selected the nominal range, select OK to return to the PS Year End Processing dialog.
   
8. On the PS Year End Processing dialog, select Validate to validate the lines to be posted during the year end process. The Validating Document window is displayed, which displays the progress of the document validation.
   
   
9. When the document has been validated, the Validation message is displayed. Select OK to return to the PS Year End Processing dialog.
   

10. On the PS Year End Processing dialog, selectProcess to begin the year end. The Posting Document window is displayed, which displays the progress of the year end process.

    
11. The year end document, e.g. ASYE (where AS represents the location code of the document type) is displayed in the Document Enquiry window, if you run a Document Enquiry. For more information, please see Running a Document Enquiry.
    If you want to transfer the balance from the surplus / deficit nominal to the restricted/designated fund nominals, you can do this using a general journal, after the year end has been processed in period 98. For more information, please see Recording a Journal Entry.

Part 2 - Rolling Forward Balances

This part of the process rolls forward all balance sheet nominals into period .99 and reverses these into period .00 to form the opening balances for the new financial year.

Rolling Forward Balances posts two documents:

• The document type selected in the Original section posts the closing balances of the year being closed into period 99.

• The document type selected in the Reversing section posts the opening balance into period 00 of the new financial year.

1. On the PS Year End Processing dialog, select Roll Forward Balances from the Select Type of Processing panel.
2. In the Document Selection panel, select Drill (...) in Period, then double-select to select period .99 for the current financial year from the List of Periods window.
   
3. The Reversing options can then be selected. Select ASYE (where AS represents the location code of the document type) from the Type drop-down list, select the start date for the new financial year from the Date drop-down calendar, then select Drill (...) in Period, then double-select to select period .00 for the new financial year from the List of Periods window.
4. Select Allocate, then select Options.
   

5. The Options dialog is displayed. Select Drill (...) in the first and second Nominal Range from fields, then double-select to select the balance sheet nominals for the location for which you are processing the year end from the List of Nominals window, e.g. AST9000 to AST9900 (where AST represents the location code of the nominals). The trading and balance sheet nominals included are based on when you run the year end process.
   If a nominal range is not selected, the year end runs for all locations in the system and transfers balances into one location’s surplus and deficit nominal. If this happens, you need to cancel the year end document created and start again.

   If using version 6.0.28 or higher of the PS Year End Processing module, as the Trading and Balance Sheet nominals are automatically identified when processing, in Nominal Range from you must select nominals 1000 to 9900.

6. When you have selected the nominal range, select OK to return to the PS Year End Processing dialog.
   
7. On the PS Year End Processing dialog, select Validate to validate the lines to be posted during the year end process. The Validate Document window is displayed, which displays the progress of the document validation.
   
   
8. When the document has been validated, the Validation message is displayed. Select OK to return to the PS Year End Processing dialog.
   
9. On the PS Year End Processing dialog, select Process to begin the year end. The Posting Document window is displayed, which displays the progress of the year end process.
   
10. The year end document, e.g. ASYE (where AS represents the location code of the document type) is displayed in the Document Enquiry window, if you run a Document Enquiry. For more information, please see Running a Document Enquiry.
    If you want to transfer the balance from the surplus / deficit nominal to the restricted/designated fund nominals, you can do this using a general journal, after the year end has been processed in period 00. For more information, please see Recording a Journal Entry.

If the documents are not automatically allocated during the year end process, you need to manually allocate the transactions posted in part 2 against the 99 and 00 period. For more information, please see Allocating and Unallocating Documents.