Year End Process

This document explains the purpose and steps of this application in JobBOSS2. There is a breakdown of the concepts and functionality as well as specific instructions for using the application. If you need any additional information on this application, see the Additional Topics links to the right.

About Year End Process

The Year End Process is necessary to post and close your accounting year. The following information walks you through the preparation and processing of the year end. If you still have monthly adjustments to make, see Creating the Monthly Journal Entries for more information.

Steps Prior to Year End Processing

Make Year End Adjustments

After completing any monthly adjustments, year end adjustments may be needed for additional items that do not belong to any specific period, such as depreciation and amortization entries. These items can be entered into the 13th Adjustment (ADJ) Period to avoid distorting another month's figures while still having them show in the yearly figures.

For more information see Fiscal Year Settings - Reference Information.

Run the Financial Reports

Make copies of the monthly financial reports and verify that everything balances. The following reports can be found by going to the GL dropdown under the green Reports tab:

  • Trial Balance
  • Balance sheet
  • Income Statement
    • When running your income statement, Shoptech recommends the following settings:
      • Print Gross Profit Margin After - Sales (50)
      • Print Operating Profit Margin After - Other Income (80)
  • General Ledger Summary

Verify GL Account Settings

It is important to verify that the Retained Earnings GL account and the Current Earnings accounts are correct and set up as Equity accounts. When the year is processed, the Income and Expense accounts zero out, the Current Earnings profit or loss rolls into Retained earnings, and the Fiscal Year begin date rolls to the new fiscal year.

In order for the Current Earnings profit or loss to roll into a Retained Earnings account properly, the two accounts must have separate GL codes.

The Current and Retained Earnings GL accounts can be found and edited under Company Maintenance Defaults in the General Ledgers section.

Backup Procedures

Shoptech strongly recommends that all On-Premise users backup the JobBOSS2 database before posting a fiscal year in case something happens during the posting process that causes an error.

If you are a hosted user, ECI Software Solutions, Inc. recommends you record the time and date of your fiscal year process. If you experience an error during this process, this information may be able to help Shoptech restore your data as it was before the year end processing.

Processing the Year

  1. Go to the blue Data Entry tab, open the G / L dropdown menu, and select Journals.
  2. In the header section of the navigation screen, select Process.
    • This will take you to the Process Accounting Functions screen.
  3. Verify that only the periods being closed are posted.
    • If this is a short year, only the periods from the "Go-Live" date forward should be posted. Any period(s) prior to the "Go-Live" date must remain un-posted or your financials will be incorrect.
  4. Click Post Year.
    • Ensure that everyone is out of the system and no new information is being entered into JobBOSS2. This process usually takes about 15-20 minutes.
    • Be sure you are ready to post your year before doing so. Once the year has been posted, it cannot be edited.
  5. Click Yes to the prompt, "The current fiscal year of 2017 will be closed. Do you want to continue?"
    • If a short year is being processed, a warning message will inform you that at least one month exists in the current fiscal year that has not been posted. Click Yes to continue processing your short year.
  6. Click OK on the prompt, "End Of Year Processing Completed!"
  7. Click Close to exit out of the Process Accounting Functions screen.
  8. Click Close to exit out of the Journal Entries Navigator.

Verify Financial Reports

Rerun the following reports for each month and compare them to the ones that were saved before the year was processed. This process is done to make sure that your beginning balances in the new year match the ending balances o f your last fiscal year:

  • Trial Balance
  • Balance Sheet
  • Income Statement
  • General Ledger Summary

Closed and Historical Years

When looking at fiscal years within the Fiscal Year Settings screen (accessed through the Company Maintenance Navigator), you will see that each year can carry statuses of Current, Closed, and Historical. The statuses indicate the following things:

  • Current - this is the fiscal year in which you are currently working
  • Closed - this year has been posted
  • Closed, Historical - this year has been closed and manually marked Historical in order to prevent this year from appearing on any drop downs

After posting a year, the Closed check mark will automatically appear on the year. If you would like to make a year historical, you must manually check the Historical box for the desired year on the Fiscal Year Settings screen.

 

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