How To: Clear Down Accounts (Year End)
Close down procedures are normally performed annually; for the monthly close down procedure see Accounting Periods.
The annual close down procedure brings forward the Balance Sheet account and brings forward the profit or loss into the Balance Sheet. It should be done only when you have reconciled all transactions for the year and want to lock-off the nominal transactions for that year.
- Ensure all prerequisites have been completed.
- Open an Accounts screen .
- From the Other Actions menu select Accounts Clear Down (Year End).
- In the date range pop-up select the dates for the close down period.
- A warning message will state Perform year-end routine and clear down nominal accounts. Once done, this operation cannot be undone. Make sure that you have a backup of your data. Continue?.
- Once you are confident that you have a backup, and wish to continue to clear down the accounts, click on "Yes".
- In the Confirm popup stating the date range that the clear down will take place between, click on Yes.
Note: depending on the data in your system, this could take some time to complete.
- Click OK in the Information message to state that the end of year clear down has been completed.
- The accounts are only closed down; they are not deleted and may be viewed at a later date.
- A warning will be displayed when doing a Year-End if there are closed transactions in it.
- A warning will be displayed when doing a Year-End if there are unreconciled bank transactions in it.
- An exception will be displayed if you try to do a Year-End for a year that has already been closed.
- The system checks when it was last cleared down and retains this date for checking purposes.
- In the
[ Accounts | Nominal Accounts ]grid the option EoY Adjustment Journal allows manual journals to be posted for EOY adjustment journals, even when the Financial year has been closed. Postings will only be allowed on the last day of the previously closed financial year.
- During the Close Down process Khaos Control creates 'brought forward' postings for Balance sheet nominals however, these will only be generated if new postings have occurred in the period being closed. For example in the case of an infrequently used account, like 'opening balances', rather than seeing an entry for each year being closed down, only a single posting will be present, for the period when the data was originally posted.