Introduction
The detailed step by step procedures for the Multi-level Year End Closing Process Functionality is described in this document.
Procedure
Define all the P&L GL accounts as below:
Balances of P&L G/L accounts such as 61, 62, 63, etc. will be closed to their associated P&L G/L account 81.
Balance of the resulting P&L G/L accounts 81 and 82 will then be closed to their associated P&L G/L account 83.
Balance of the resulting P&L G/L accounts 83 and 84 will be closed to their associated P&L G/L account 85.
After that, balance of the resulting P&L G/L accounts 85 and 86 will be closed to their associated net result P&L G/L account 88.
Finally, balances of all the P&L G/L accounts had been closed to a single net result P&L G/L account. It will require closing the balances of this net result P&L G/L account to the B/S G/L account 59.
1. In the System/General/Settings/General ledger settings, under the General ledger section, a new field Net result: Profit & Loss GL account is display for user to enter a G/L that will be used as the closing for all the associated resulting profit & loss GL accounts during the process P&L functionality via System/Finance/Process profit/loss.
ONLY type Profit & Loss GL account can be selected for this field. If the GL selected is an Associate GL, there will be a validation GL, there will be a validation 'Invalid value' as user is not allowed to use the same GL.
2. Under the Finance/General ledger/Chart of G/Ls, a new checkbox ?AShow: Associated account?¦ is added. When this checkbox is ticked, two columns Associated P&L and Associated G/L description will display. These columns will display its respective associated GL account as defined in the GL maintenance, Associated account tab, Account P&L field.
(i) Deletion any of the Associated GL accounts is not allowed. A message Linked to: GL account (Associated G/L) will prompt.
(ii) When user presses the Template button to import or export GL accounts, the import or export file is already incorporate with the associated P&L G/L accounts.
(iii) When user recodes any of the GL accounts that already linked to an associated GL account, the system will update both the GL account as well.
(iv) In the GL maintenance, under the Associated account tab, all the GL accounts linked to this associated GL will automatically be updated and display here.
(v) When the Net result: Profit & Loss GL account is not filled in the settings. While saving the GL maintenance, a message will prompt:
3. Go to Finance/General ledger/Chart of G/Ls Maintain G/Ls.
(i) When user opens a P&L GL account, e.g. GL 61, a new 'Associated account' tab is added. User is not allowed to link the same GL, e.g. GL 61 as an associate G/L itself.
(ii) When user opens the Net result P&L GL maintenance account as linked in the settings , e.g. GL 88. Since the net result GL account will only be allocated to the B/S GL account in the year end process P&L, no associate GL is needed. This Net result P&L account only allowed user to insert or delete those G/L accounts which are associated to it under the ?ATo be associated?¦ section.
When button is clicked, the general ledger accounts search browser will pop up. With this search browser, user can add multiple P&L GL accounts to be associated at a time. This will only show those P&L GL accounts which have no associate P&L G/L accounts.
4. Go to System/Finance/Process profit/loss, enter the Account: B/S and press <Display>.
Notes:
With this new multi-level year-end closing process, the system not required to close the balance of the net result P&L G/L account to the resulting B/S G/L account. Thus, the mandatory check for the resulting balance sheet G/L account is removed.
When the Resulting balance sheet general ledger account (Account: B/S) is blank, the year-end closing process will not consider as completed which user might experience with viewing the imbalance financial results.
When the <Display> button is clicked.
(i) The Process profit / loss message as below will be shown if financial period is closed.
(ii) The Process profit / loss message as below will shown if some of the profit and loss accounts have not been associated with a resulting profit and loss account.
(iii) The Process profit / loss message as below will be shown if the previous year-end closing process has not been performed.
(iv) The closing entries will be displayed temporarily on the process entries screen.
P&L Level combo box is used to filter the different levels of closing entries only, but not for filtering the closing entries to be processed. The purposes of this combo box are for audit and presentation only. Anyhow, the whole batch of the closing entries will be created once the Process button is clicked.
The maximum number of the levels will depend on how many levels the G/L accounts had been processed.
A new column Level is added in the browser to display the level of P&L processing.
(v) When Process button is clicked, the system will filter all the P&L GL accounts and group up each level base on their associated resulting GL account, up to net result P&L GL account.
Sum up all the processed entries for every P&L GL account and close each of the GL account by booking the double entry against its associated resulting GL account. All the balances allocate to the associated resulting GL account will then be closed to the net result P&L GL account.
The Process profit / loss message as below will be shown if the B/S GL account is supplied before the process to notify the user to continue with closing of the net result P&L GL account. When user decide to continue, it will close the net result P&L GL account to the resulting B/S GL account as filled in the Account: B/S field.
(vi) The Process profit / loss message as below will be shown when financial entry processed successfully.
5. Importing the GL accounts into a XML file via XML/Financial import/General ledger accounts with the associated GL accounts do supported:
Chart of G/L account structure can be import from one company to another company successfully which cater for the newly added field associated resulting P&L G/L account during the import process.
6. Functionality does support for XML export GL accounts via XML/Financial export/General ledger accounts:
Chart of G/L account structure can be export from one company to another company successfully which cater for the newly added field associated resulting P&L GL account during the export process.
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