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:
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.
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.
Go to: Applications > Accounts Payable > (More) Subledger > Close
Close AP Subledger Screen
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.
Run the AP Ledger report by going to Applications > Accounts Payable > (Reports) AP Ledger.
AP Ledger Report Screen
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
The bank accounts in Cash Management should also be individually reconciled.
Complete a bank reconciliation by going to Applications > Cash Management > (Reconciliation) Bank.
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:
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).
Prior to closing, run standard financial reports to verify results
Go to Applications > General Ledger > Books > Close
Close Books Screen
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.