Financials Year-End Processing

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Financials Year-End Processing

• Paul Sterzinger
• Senior Business Analyst
• Lawson RD

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Accounts Payable

• AP195 Period Closing is run to insure all
  transactions have been processed and interfaced
  to the general ledger.
• After the last period is closed for the fiscal
  year, run AP199 Vendor Balance Year End
• Updates the new year period end dates on the
  vendor group.
• Transfers the current year vendor balances to
  last year.

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Accounts Payable

• Archiving/Purging Vendor Invoices
• Archiving invoices is used to speed up batch and
  on-line performance (AP198).
• Moves historical invoice, distribution and
  payment records to archive files.
• May be used instead of purging
• You can inquire and or report on archived
  invoices.
• Purged invoices permanently deletes records and
  archives them to a csv file (AP300).

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Asset Management

• Make sure you are finished adding, adjusting,
  transferring and disposing of asset records.
• Release transactions using AM170.
• Determine if the 40 tax rule applies to the
  depreciation calculations.
• This rule requires that if 40 or more of all
  assets are placed into service in the last fiscal
  quarter, special depreciation calculations apply

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Asset Management

• 40 tax rule determination.
• Run AM220 to list assets added during the past
  year.
• Run the AM220 again for assets added during the
  last quarter.
• Compare the reports to determine if 40 of the
  assets placed in service during the year were
  placed in the last quarter.

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Asset Management

• If the 40 rule applies, adjust the depreciation
  conventions for the assets that were placed in
  service during the fourth quarter of the year.
• Run AM125 Mass Adjustments. On the Asset Book
  Adjustment tab change the convention code to MQ
  (Mid Quarter)
• Update the changes made in AM125 by running AP170
  Processing Release

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Asset Management

• Continue running the normal period close process.
• Run AP180 - Depreciation Calculation.
• Run system reports and verify asset information.
• Once satisfied that the reports and assets are
  correct post and close the period by running
  AM190 - Period Close.
• Running AM190 with the release parameter set to
  yes is irreversible.

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Asset Management

• Run year end reports.
• Addition Report AM220
• Adjustment Report AM225
• Transfer Report AM230
• Disposal Report AM240
• Projection report AM255
• Asset Report AM260
• Property Report AM265
• Account Balance Report AM270
• Current Year Deprecation Report AM280
• Book Comparison Report AM285
• Tax Credit Report AM290
• Recapture Report AM292
• FASB Reconciliation Report AM295

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Asset Management

• Make sure you have run all reports. You can not
  run them once year end is processed.
• Note If you have depreciation history enabled
  for the books you can use AM281 Depreciation
  History Report to report on previous year
  depreciation history
• Back up the data.
• Run AM195 Year End Close to close out the year.
• Verify the year end was successful by opening
  AM01.1 Calendar and inquiring on the company
  and book.

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Activities

• There are no mandatory procedures for year end
  processing.
• Optional - run AC195-System Control to close
  activities on a monthly basis.
• Closing the activities allows the users control
  over transactions for balancing purposes.
• Most clients do not close activities because
  there is no back posting functionality

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Accounts Receivable

• AR199 Period Closing Report is also used for
  year end processing.
• The AR199 is run with the year end parameter set
  to Y.
• In addition to normal period end processing the
  AR199 will rolls the following balances from
  current year to last year.
• Period Billed, Chargebacks, Credits, Write-offs
  and Paid
• Moves any value for the next year to the first
  period.
• Moves the year-to-date Invoice Payment Average
  (IPA) and Days Beyond Terms (DBT) totals to last
  year to update customer statistics.
• The AR199 should prompt you to run the year end
  option for the last period
• Do NOT run the AR199 twice .

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Lawson General Ledger Year-End Procedures
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Year-End Process Flow
Backup Lawson Data

• Verify Fin.
• Stmts. for LY (2004)
• Run GL291, GL292
• GL293

• Final Close all
• periods of LY (2004)
• Run GL190 to post
• all entries
• Run GL199 with
• Final Status

• Verify all subsystems
• are closed in CY (2005)
• Required if using
• closing control

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Verify Fin Statements for Last Year (2004)

• Verify totals
• Verify company is in balance

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Final Close All Periods of Last Year (2004)

• May want to verify year-end fin statements after
  running this

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Verify Subsystems are Closed in Current Year
(2005)

• Access from Drill around on Company field
• Interface subsystem entries, then close subsystems

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Year-End Process Flow
Are you using Currency Exchange?
Yes
No

• Run Currency
• Revaluation (GL191)
• Run AP191 and AR196,
• if applicable

Are you using Currency Translation?
Yes
Run GL195 or GL196 to translate multiple CUs
into a common CU
No
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Year-End Process Flow
Do you store statistical amounts/units in
Budgeting?
Yes
Roll statistical or historical budgets forward
one year using FB120
No
Backup Lawson Data
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Roll Statistical/Historical Budgets Forward

• Roll statistical or historical budgets ahead one
  year so RW reports dont need to be modified

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Roll Statistical/Historical Budgets Forward
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Year-End Process Flow

• Verify Year-End Fin.
• Stmts. for CY (2005)
• GL291, GL292 GL293

• Review period end dates
• for NY (2006)
• GL10.1

• Close last period
• of the current year
• GL199-Limited status

Verify Fin. Stmts. for pd. 1, CY (2006)
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Verify Year-End Fin Statements for Current Year
(2005)

• Verify totals
• Verify company is in balance

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Review Period Ending Dates
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Close Last Period of Current Year (2005)

• Closes the last period and the year
• Rolls account balances forward
• Current year last year
• Next year current year
• Creates consolidation records for next year
• Calculates beg. balance for all BS accounts for
  next year
• Creates a closing entry with a status of history
  in period 99
• Undistributed RE RE

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Close Year - Consolidation Company

• Doesnt auto-reverse entry in next period
• Reverses out balance sheet account balances in
  period 1
• Prepares system for translation in new year

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Year-End Closing Entry

• Use Journal Control (GL45), Journal Analysis
  (GL41) or Trans. Analysis (GL90) to display
  year-end closing entry

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Processing in NY before Closing CY

• Select Next Yr Beg Bal prior to closing year to
  calc beg balances for the next year

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Processing in NY before Closing CY

• Use to bring adjustments from CY to NY prior to
  closing year
• Can run multiple times for multiple batches of
  adjustments

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Verify Fin Statements for Period 1 (2006)

• Verify totals
• Verify company is in balance

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Year-End Process Flow

• Adjust dates on CA
• and RJ entries
• Use CA10.2 GL70.2
• to adjust dates for CY (2006)

Delete Transaction History using GL300

• Delete unused accounts
• Use GL122 for
• posting accounts
• Use GL100 for
• detail accounts

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Adjust Dates on CA Entries

• May want to adjust ending dates beyond the end of
  the CY (2006)

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Adjust Dates on RJ Entries

• May want to adjust ending dates beyond the end of
  the CY (2006)

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Delete Transaction History

• Can delete unwanted transactions, balances
  budgets
• Can optionally save information in archive files

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Delete Unused Posting Accounts

• Accounts must have no budgets or transactions for
  at least two years

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Delete Unused Detail Accounts

• Accounts must have no budgets or transactions for
  at least two years

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Special Considerations Period 13

• Can I use period 13 as an adjustments period?
• At least one day must be dedicated to this period
  
• Journal entries can be auto-reversed from period
  12 to period 1, other entries cannot
• Spread action in budgeting spreads to all periods

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Special Consideration Commitment Accruals

• What is the purpose of Period Year End GL
  Commitment Accrual?
• Optional process
• Updates period/year on outstanding commitments
  encumbrances
• Create accruals for outstanding commitments
  encumbrances
• Auto reverse accruals in next period
• Year-end can create a budget journal entry for
  NY instead of an accrual entry

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Related Knowledge Base Articles

• General Ledger Year End Closing Process
• Articles 83938, 74398, 532032, 550248
• What Happens When I Accrue Encumbrances
  Commitments?
• Articles 73832, 100884
• Consolidation Company Year-end Entry
• Article 72115, 83940
• Performing Optional Year-end Procedures
• Article 532046, 92992, 73910

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QUESTIONS ??
Paul Sterzinger Senior Business Analyst