Year End issue- How to extract the Full Year TB from GL Balance Analysis after completing the Year End Process

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

1. When you clear Cost/Revenue balances, select period 13. Post the voucher and update to GL.
2. Close period 13.
3. Create a new period 14. Add user group YE.
4. Go to Final Year End and select Create Year End Vouchers.
5. Enter From and To Accounting Years.
6. Select User Group and Voucher Type. 
7. Click OK

The vouchers are created in period 14.

Now when you analyze GL

1. 0..12 is all accounts balances. 
2. 0..13 is BS accounts. P&L is transferred to retained earnings.
3. 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

Furkan Zengin wrote:

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

 

 

1. When you clear Cost/Revenue balances, select period 13. Post the voucher and update to GL.
2. Close period 13.
3. Create a new period 14. Add user group YE.
4. Go to Final Year End and select Create Year End Vouchers.
5. Enter From and To Accounting Years.
6. Select User Group and Voucher Type. 
7. Click OK

The vouchers are created in period 14.

 

Now when you analyze GL

1. 0..12 is all accounts balances. 
2. 0..13 is BS accounts. P&L is transferred to retained earnings.
3. 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.

​@Thomas Peterson  Thank you for your response.

Regards,

MalinG.

We have a related question,  when closing out the Revenue/Cost balances to Retained earnings we would like the posting to Retained Earnings to be apportioned accordingly by PC [as in the net Revenue/Cost for each PC to be posted separately to Retained Earnings].   I was thinking that is what this setting (see below) is for in the Clear Revenue/Cost Balance screen, but have tried it in a few different iterations and it is not doing so.  Is posting by PC to Retained Earnings possible?  If not, what is this setting for?   Thanks, Joseph

Hi.

If you make a manual voucher (via excel or other such as keying) you can do anything you want. 

For an example, external voucher can represent anything you want - in terms of the postings. 

If you are in a country that does not require system generated year end postings then manual voucher is highly effective. 

At final year end, IFS mandates that balance sheet balances (profit was moved to balance sheet). How that happens - does not really matter from IFS logic perspective. In other words, IFS does not mandate clearing of P&L accounts. They can remain as is provided we move profit to balance sheet. A 1-minute posting once per year can allow a final year end. 

Best regards, 

Thomas

Thanks Thomas.   Makes sense.

And the switches for PC, Dept, etc are to have the system sum up the activity in each Revenue/Cost account by PC, Dept, etc and generate a clearing balance accordingly.   But only one total posting will be made to Retained Earnings which is total of all activity in the Revenue/Cost accounts regardless of PC, Dept., etc.    ←  I believe my understanding is correct.  We will just have to do a manual entry at year end to apportion the Retained Earnings amounts by PC.