Year End issue- How to extract the Full Year TB from GL Balance Analysis after completing the Year End Process
Hi All,
One of our customer’s completed the Year End Process and complained us about 0-13 Periods balances are now zero in GL Balance Analysis, and they are not able to extract the Full Year TB from the IFS Application. In our investigations we found that in Period 13 contains following categories posting transactions only,
Automatically created Clear Revenue /Cost Balances related Voucher entry which include GP8 (Retained Earnings) posting. Here they use a different Voucher Type YEM
Audit Adjustment manually created Voucher entries- They use a separately created Voucher type for this, AE
Automatically created Final YE Voucher entry - They use a separately created Voucher type for this, YE
Issue:
From the Clear Revenue /Cost Balances related Voucher entry all Cost and Revenue accounts balances transferred to Retained earnings , so Cost and Revenue accounts balances not available in the GL Balance Analysis for Period 13
Automatically created Final YE Voucher entry transferred all balance sheet related accounts balances, so those accounts balances also not available in the GL Balance Analysis for Period 13
Since the Audit Adjustment entries are there in the Period 13 , customer couldn’t run the GL Balance Analysis for Period 12 to get the Full Year TB
Could you experts Pls explain us how the Full Year TB could be extracted in this situation …?
Regards,
MalinG.
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Hi @TopMalinG
If you are closing the year with year end voucher and you want to see P&L records then my recommendation is using 2 or more closing periods. See my setting below
When you clear Cost/Revenue balances, select period 13. Post the voucher and update to GL.
Close period 13.
Create a new period 14. Add user group YE.
Go to Final Year End and select Create Year End Vouchers.
Enter From and To Accounting Years.
Select User Group and Voucher Type.
Click OK
The vouchers are created in period 14.
Now when you analyze GL
0..12 is all accounts balances.
0..13 is BS accounts. P&L is transferred to retained earnings.
0..14 is all BS accounts are closed and transferred to next year.
Open up the closed accounting year, process the way I described. Analyze the records.
P.S. if you have specific accrual records that you want to track after clearing cost/revenue balances, then you can create more closing periods.
Hope this helps
Hi,
Another option…
For year end a good number of clients simply create a manual voucher to clear the profit or loss and move that value to equity.
IFS does not require clearing of P&L accounts. We (IFS) require that all profit is moved to the balance sheet. Balance sheet must total 0. That can be a two-line voucher 1 P&L account such as year profit / loss and then an equity account.
This process retains your ability to report and analyze using existing reports.
Some countries mandate a voucher process to clear, others it's an option.
I have even had a few clients continue an old process (long before IFS) of booking this and audit adjustments to a separate department or even better a financial project. In IFS the financial project is probably better / easier than a new department (IMO).
Best regards,
Thomas
Hi @TopMalinG
If you are closing the year with year end voucher and you want to see P&L records then my recommendation is using 2 or more closing periods. See my setting below
When you clear Cost/Revenue balances, select period 13. Post the voucher and update to GL.
Close period 13.
Create a new period 14. Add user group YE.
Go to Final Year End and select Create Year End Vouchers.
Enter From and To Accounting Years.
Select User Group and Voucher Type.
Click OK
The vouchers are created in period 14.
Now when you analyze GL
0..12 is all accounts balances.
0..13 is BS accounts. P&L is transferred to retained earnings.
0..14 is all BS accounts are closed and transferred to next year.
Open up the closed accounting year, process the way I described. Analyze the records.
P.S. if you have specific accrual records that you want to track after clearing cost/revenue balances, then you can create more closing periods.
Hope this helps
@Furkan Zengin Thank you for your response.
Regards,
MalinG.
Hi,
Another option…
For year end a good number of clients simply create a manual voucher to clear the profit or loss and move that value to equity.
IFS does not require clearing of P&L accounts. We (IFS) require that all profit is moved to the balance sheet. Balance sheet must total 0. That can be a two-line voucher 1 P&L account such as year profit / loss and then an equity account.
This process retains your ability to report and analyze using existing reports.
Some countries mandate a voucher process to clear, others it's an option.
I have even had a few clients continue an old process (long before IFS) of booking this and audit adjustments to a separate department or even better a financial project. In IFS the financial project is probably better / easier than a new department (IMO).
