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Year-Closure

This is an accounting procedure undertaken in Loan Performer at the end of the year to close out business from the previous year, carry forward balances from the previous year, and open posting accounts for the upcoming year. Year-end closing is part of a company's closing operations, and is used to create a company's financial statements.

Note:
1.You will not be able to run a month closure unless you have approved all manual transactions regardless of the accounting configurations that you make.

2. Also before attempting to close the year ensure that you have done Day Closure, and also done Month Closure. Otherwise message as one below will appear month closure won't proceed.

3. Closing the current financial year makes it impossible to book any transaction again in the closed year. This also regards the automatic posting of savings and loans transactions.

How to close the Financial Year

To close the financial year you go to Accounts ->Year Closure and the following screen will be displayed:

• Current transaction date: This field is read only and will automatically be populated with the current system login date, e.g., "14/08/2010".
• Current financial year runs from: .. to ......: These date fields will automatically show you where the current financial year starts and end, e.g., "01/01/2010" to "31/12/2010".

Note that if you are doing the year closure for the first time, the starting date will be the same as the Beginning of the Financial Year set at System-> Configuration-> Accounting-> Accounts Settings. However subsequent years closures will take on the start date determined the most recent year closure.

• (Change) Year end date: This field will be populated with the end of the current financial year date, e.g., "31/12/2010" . However if for any reason you need to change this date, then enter the new date in this editable field.   

• New financial year runs from ....... to ........: The date boxes will be automatically be populated with the system determined new financial year, e.g., "01/01/2011" to "31/12/2011". This will start the next day after the end of the current financial year end.

Click on the OK button to close the year. A Loan Performer dialog will pop up cautioning you about the effect of the year closure. See below.

If you find it ok. click on the Yes button to continue. A pop up screen will come up confirming that you have successfully closed the year.

Note that after the year closure all the Income and Expense accounts will be zerorized while the balance on the balance sheeet accounts will be carried forward to the new financial year.

Related Topics

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