Year End: Add Year End Journal Entries and Close a Year (Video)

Year End Adjustments Tab

The Year End screen opens to the Year End Adjustments tab.  Prior year end adjustments can be searched using the Search field, and filtered by source and the Include Posted Batches checkbox.

Add Year End Adjustment

Year end adjustments need to be entered after all months in the year have been closed, and before closing the year.

1. To add a new year end adjustment, click Add Year End Adjustment .
   
   
   
2. Enter a description, date, and select a source from the drop-down list.  Clicking Add New pops up a window to add new source types. Click Save / Exit to continue.
   

3. Add New Source

   1. If you need to add a new source category, click Add New .
      
      
      
   2. A pop-up window will appear for you to enter a code name and description for the new source, then click Save / Exit.
      
      
      
4. An adjustment batch number will be created and displayed in the top pane.  In the bottom pane, manual journal entries can be added to the adjustment batch.  Click Add Manual Journal Entry .
   
   
   
5. A Manual Journal Entry screen will pop-up to enter your adjustment.  The date, GL account, description, and division must be filled in as required fields, then enter the appropriate debit / credit amount.  The Entry Control Options in the bottom pane are optional - unless your system has been configured to require specific fields.  These may be useful if you do reporting or analysis of manual journal entries by specific locations, warehouses, customers, etc.  Click Save / Exit at the bottom of the screen to save the journal entry.
   
   
   
6. The manual journal entry will be added to the list in the bottom pane. Repeat the Add Manual Journal Entry steps to add additional manual journal entries. The credits and debits in the batch must be balanced.
   
   
   
7. When you are done adding manual journal entries to the adjustment batch, click Post.
   
   
   
8. If you need to un-post a batch, put a check next to Include Posted Batches to display batches that have been posted, then click the appropriate Un-Post button.
   

Year Depreciation Tab

If you use our asset deprecation module, yearly depreciation needs to be generated from the Year Depreciation tab to set up your depreciation schedule to continue into the next year.  This operation sums up the year-to-date depreciation for each asset and creates the new schedule for the next year (note this does not create journal entries).

Select a depreciation book from the drop-down list, enter the closing year, then click Generate.

Close / Open Year Tab

At the end of each fiscal year, after closing all months within the year, it is necessary to close the year from the Close / Open Year tab.

Closing years works in the same way as closing months.  Use the Close and Open buttons to close and re-open periods.  If there are errors, use the View buttons to display any errors.  Years must be closed in chronological order and re-opening years must be done in reverse chronological order, just as with closing and opening monthly periods.

Annual Budget Tab

Budgets can be created from the Annual Budget tab.

The Annual Budget screen is most useful after you have been using EMDECS for a full year, so the previous year's numbers can be used to calculate budgets accurately.

1. To create a budget, select a year from the drop-down list, then click on Define Division Ratio and Define Location Ratio to set up ratios for business divisions and locations.
   
   
   
2. The Define Division Ratio pop-up screen lists all business divisions in EMDECS.  Enter a ratio in each field, or click the Proportionate button to automatically spread the budget evenly. Click Save / Exit to close the screen and save the ratios.
   
3. After clicking on Define Location Ratio , enter the ratio for each location or use the Proportionate button to split the budget evenly for each location.
   
   
   
4. After setting division and location ratios, click Calculate Budget .
   
   
   
5. Enter a year to base the budget on (typically the previous year), a calculated percentage (i.e. 105 if you expect business to increase by 5%), and select a radio button to base calculations on either actual numbers or the previous budget numbers. Under the Include column, put a check next to each account group to be considered. Click Calculate at the bottom of the screen to calculate the budget.
   
   
   
6. A budget will be calculated and displayed by GL account numbers and amounts for each account.
   
   
   
7. Clicking on an account number will drill-down and allow you to see the budget amount by different divisions, locations and periods.
   
   
   
8. Clicking on any amount pops up a window to edit the budget amount.