The 3 Step Perfect Close Procedure



It is absolutely critical that you use the provided mechanism for closing the G/L year for any company. (Companies, remember are designated by qualifier. (Of course, if you are using only one G/L it can be "unqualified" meaning there is no qualifier used for it.) This procedure allows  you to correctly create a new qualifier to hold the active year's data and copy that data to it. This new qualifier is the previous fiscal year. The procedure will then close the active year and clear the Income and Expense accounts which makes you ready to do work in the new fiscal year. If need be, you can make further adjustments to the previous fiscal year by adding Journal Entries to it, and bring those changes forward to the active year, using the special Merge utility provided. Please carefully read the chapter on Closing the G/L year so that you do these 3 operations  properly.


To Close The G/L Year:


1) Use the "Close Year For G/L"  choice on the Setup/Configure G/L menu,

(Choice 2).  It is STRONGLY reccomended that you put the 2 digit year as the last characters of the current year qualifier when you run this utility. For example, if your active fiscal year qualifier is called "keep", do as follows:


                  Active      Previous

      Example:    "keep"  ->  "keep07"            (for the fiscal year 2007)


If your not using a qualifier for the active year, just use the two digit year by itself for the qualifier for the previous fiscal year, as follows:


            Active      Previous

      Example:            ->  "07"          (for the fiscal year 2007)


2) You can now continue working in the "new" active fiscal year in your original  qualifier "keep". Meanwhile, you can make journal entries to the previous fiscal year by working in "keeop07". It is only permitted to make Journal Entries in a previous year. Do not Enter A/R, A/P or P/R through those modules. This facility is strictly for End Of Year adjustments by Journal Entry.


3) When they are posted, you can then run the Special Merge Utility. Choice D on the "nexcfg" menu.


   Use "keep07" as the Source Qualifier and "keep" as the Destination Qualifier.


This completes the process and moves the new final postings and corrected previous year ending balances to the current year's beginning balances, for all

Balance Sheet accounts.


The Merge routine (Choice D) can be done as many times as required. For example, your accountant gives you several closing adjustment Journal Entries to make to the previous fiscal year. You make them, post them and then do the Merge. Later, he gives you some he forgot or sees he needs to add. Simply make them to the previous year as before, post them and do the Merge again. The new transactions will be moved to the current year and updated Beginning Balances will be put into place.


By using this method, you can keep any fiscal year's data on file *without* closing it and losing all the Income and Expense data. Therefro, you can pull a Profit & Loss Sheet for any period of any year.