The Year End Process in Sage Intacct – checklist & step by step guide.

Year End is quickly approaching, luckily Sage Intacct makes the Year End processes simple. Read on for our checklist and guide for performing Year End in Sage Intacct.

 

Before you start here’s an example checklist of tasks you will need to complete before performing year end. Click here to learn how to add this checklist to Sage Intacct:

  • Payroll entries for the prior month are entered and/or uploaded
  • All Accounts Payable (“AP”) bills for the prior month are entered (and paid where relevant)
  • Any recurring AP bills for the prior month are generated
  • All Accounts Receivable (“AR”) invoices for the prior month are entered (and payments received where relevant)
  • Any recurring AR invoices for the prior month are generated
  • All employee expense reports for the prior month are entered
  • All timesheets for the prior month are submitted and approved
  • All inventory receiving transactions are processed (to account for inventory on-hand balance and value)
  • All expenses for the prior month for company credit cards are entered
  • All deferred revenue/schedules for the prior month are processed and recognized
  • Subledger balances for the prior month tie to the General Ledger liability accounts
  • Checking accounts and credit card accounts are reconciled
  • Subledgers are closed
  • Any recurring Journal Entries for the prior month are posted
  • Final adjusting entries for the prior month are posted (i.e. bonuses, payroll taxes, vacations, use tax, etc)
  • Financial reports for the prior month are printed
  • Books in the General Ledger for the prior month are closed

 

 

What is a Year End Close?

A Year End Close is the processing of transactions, Journal Entries, and financial statements at the end of each fiscal year.  The financial statements should reflect only the transactions and Journal Entries having relevance to the current fiscal year’s revenue and expenses, and end-of-the-year assets and liabilities.  The yearly close enables a formal cut-off of the year’s financial/transactional activities and prevents transactions from being posted in prior years.

 

Common Tasks for Completing a Year End Close Using Sage Intacct

 

Close the Subledgers

Closing the subledgers prevents transactions from being created in the most recently closed period and prior periods, and ensures transactions entered in the future are not dated to post in prior periods.

 

Included below are instructions for closing the Accounts Payable subledger.  The same processes and steps apply for other subledgers such as Accounts Receivable, Cash Management, and Employee Expense.

 

Close the Accounts Payable Subledger

Go to:  Applications > Accounts Payable > (More) Subledger > Close

Close AP Subledger Screen

  • Select entity/entity group to close (if multi-entity)
  • Close Subledger from: Displays the start of the period that is currently open.
  • To the end of period: Select the reporting period listed that is to be closed in the “To the end of period” field.
    1. Note: Closing a current period will close all periods prior to the current period.  For example, if “Month Ended January 2018” is selected then all periods prior to January 2018 are also closed.  If a reporting period needed is missing from the list, go to Applications > Reports > Setup tab > (More) Reporting Periods to add additional reporting periods.
  • Close a Single Summary: If preferred, a single summary (i.e. batch) can be closed instead of the entire subledger.  To do so, select the summary to be closed from the list.

 

Complete Reconciliations

After the subledgers have been closed, it is time to reconcile the subledger balances to the General Ledger.  Reconciling involves ensuring a subledger balance equals that subledger’s liability account balance in the General Ledger.

 

Included below are instructions for reconciling the Accounts Payable subledger.  The same processes and steps apply for other subledgers such as Accounts Receivable and Employee Expense.

Accounts Payable Reconciliations

Run the AP Ledger report by going to Applications > Accounts Payable > (Reports) AP Ledger.

AP Ledger Report Screen

  1. Reporting Period: Current Month, as of the current month’s end date being reconciled
  2. Based on: GL Posting Date

 

Run the General Ledger report by going to Applications > (Reports) General Ledger for the Accounts Payable liability account for the month being closed/reconciled.

General Ledger Report Screen

  • Confirm the subledger balance and the General Ledger liability account balance match. If there is a balance variance between the subledger and General Ledger liability account, research the differences and make entries as necessary to reconcile.

Bank and Credit Card Account Reconciliations

The bank accounts in Cash Management should also be individually reconciled.

 

Complete a bank reconciliation by going to Applications > Cash Management > (Reconciliation) Bank.

 

Make Adjusting and/or Month End Journal Entries

Make Journal Entries to accounts for adjusting and/or other types of month end Journal Entries by going to Applications > General Ledger > Journal Entry.

Please note that Journal Entries to close Income Statement accounts into Retained Earnings are not required in Sage Intacct.  Sage Intacct utilizes a “virtual close” based on the reporting period selected when running a financial report with no actual Journal Entries made.  For example, if today is 11/15/2018 with fiscal year equaling calendar year then Retained Earnings would be determined by the system as follows:

  • Reporting Period in Financial Report is Current Month = Retained Earnings is the sum of all Income Statement accounts from 01/01/2018-10/31/2018
  • Reporting Period in Financial Report is Current Quarter = Retained Earnings is the sum of all Income Statement accounts from 01/01/2018 – 09/30/2018
  • Reporting Period in Financial Report is Current Year = Retained Earnings is the sum of all Income Statement accounts from 01/01/2017 – 12/31/2017

 

Close the General Ledger

Closing the General Ledger prevents any additional posting transactions in that period.  Closing the General Ledger also automatically closes any open subledgers (subledgers cannot be open if the General Ledger is closed).

 

Verify Results

Prior to closing, run standard financial reports to verify results

  • Trial Balance – Go to Applications > General Ledger > (Reports) Trial Balance
  • Balance Sheet – Go to Applications > General Ledger > (Financial reporting) > Financial reports
  • Profit & Loss – Go to Applications > General Ledger > (Financial reporting) > Financial reports

Go to Applications > General Ledger > Books > Close

Close Books Screen

  1. Close company books from: Displays the start of the period that is currently open.
  2. To the end of period: Select the reporting period listed that is to be closed in the “To the end of period” field.

Note: Closing a current period will close all periods prior to the current period.  For example, if “Month Ended January 2018” is selected then all periods prior to January 2018 are also closed.  If a reporting period needed is missing from the list, go to Applications > Reports > Setup tab > (More) Reporting Periods to add additional reporting periods.