Introduction

Once an End of Period has been done for June, the End of Year function for the financial year just ended is made available. Stockyard has made the End of Year a flexible process so that it is not an ‘all or nothing’ function. It is possible to -

1. Zero income and expense accounts as a separate process to entering/applying EOY journals,
   
2. Enter EOY journals at any time,
   
3. Choose when to apply EOY journals.
   

Note: The End of Year accounting period is NOT designed to be used as an accrual accounting period.

Preparation

Stockyard database backup.

Take a back-up BEFORE you end the June period.

1. On the server workstation, on menu bar, select System > Backup.
   
   
2. Select your backup folder, to create the backup file. The file name should be meaningful, ie Stockyard - Before - EOY - DD-MM-YYYY.
   
3. It is good practice to copy the file to another storage medium (cloud, USB, external HD).
   
4. Keep this backup and DO NOT overwrite it.
   If you need help backing up your data, please call Outcross Systems Support on 1800 799 107, before ending the June period.

Click the Accounting button

Select from top menu Actions > End Of Year

                  or                       

“End Of Year dialog” appears, the button at the bottom of the dialog has either:

If Un-apply EOY - EOY has been completed. It's safe to close current June accounting period or,

Apply EOY - This needs to be completed (Steps outlined directly below) before closing the current June accounting period.

Closing previous financial year.

1. Check for unreconciled bank statement entries and/or banking journals.
   
   
2. Don’t wait till the End of Month to check-out your bank reconciliation.
   
   You can generate a new Bank Rec report at any time, by clicking the ‘Print’ button in the top task bar on the Bank.  Reconciliation screen.  Go to Report > Bank Reconciliations to see previously generated reports.
   NB - this report is only automatically generated at the end of the month.  Please generate each reconciliation if you would like to view these at a later date.
   

Any ledger entries marked with asterisks are older than the current accounting period - the number of asterisks denoting the age of the journal to a maximum of four.

Bank Reconciliation screen or report

1.  The left (bank statement) side should have NO entries,
   
2. The right (bank journals) side may have un-presented cheques and bank journals entered since the last bank statement was entered.
   

All other entries need to be investigated and appropriate journals entered so they can be cleared from the bank reconciliation. It is preferable that the new financial year starts with a clean bank reconciliation.

Printing EOY Reports For Your Accountant

The following table lists reports & figures accountants commonly request, which Stockyard report to use and what the report parameters are to ensure they are included in the report.

Important Note: You do not need to process End of Year to generate these reports.

Processing the End Of Financial Year

‘End of Year’ is an Accounting process that allows the entry of general journals into a 13th period before moving yearly income and expense account totals for the End of Year period to a Profit/Loss ‘Proprietorship’ ledger account. The final step applies the End of Year journals and closes off the financial year.

The process does not need to be completed at the one time, however it is important that each step is completed before the next step is started.

Normally your accountant will advise you of the journals that need to be processed before a financial year is closed. These are usually balance sheet adjustments such as depreciation.

End Of Year journals.

In general, anything that would be included in a BAS total cannot be processed as an End of Year journal as there is no BAS reporting for the 13th period. Therefore, only ‘Financial’ journals can be processed as End of Year journals.
The following should not be processed as an end of year journal -

1. Journals that involve GST.
   
2. Journals that involve a client account.
   
3. Non-financial journals that involve income and expense accounts.
   

Remember to take a back-up of the database BEFORE you end the June period.

1. Click the Accounting button
   
2. Select from top menu Actions > End Of Year
   

It is important you follow the steps, completing them sequentially before moving to the next step.

The End Of Year Processing screen is divided into three steps.

Step One gives you access to the EOY period for any EOY journal adjustments.

Step Two journals Income & Expense account balances to the specified Profit/Loss account for the year that is ending, effectively zeroing these accounts for the new financial year.

Step Three applies EOY journals (balance sheet items) to Year to Date figures of the first month of current financial year.

See the following outline for detailed information about each step.

STEP ONE - Accessing EOY Period / Returning to Current Period

Set-up

Select the EOY Period you are processing from the drop-list.

Note: The EOY period for the financial year just ended will be listed once an End of Period for June has been done.

Accessing the EOY Period

Click the ‘Access EOY Journals And Reports’ button to access the EOY period.

Note that there is a small change in the caption on the accounting screen (the period becomes “EOY Process”).

Note: If this button is greyed out it is because an End of Year has been applied previously. To access this period for the selected financial year you will need to first Un-apply EOY by clicking the third step button.

Returning to Current Period

When you want to return to the current Accounting month select ‘End Of Year’.

1. In the Accounting  Actions’ Menu, select Actions > End Of Year.
   
2. Click the Step One button which will display the words ‘EOY JOUNALS OFF (Back To Normal Processing).
   

Once you have clicked this button you will be returned to the Accounting Menu.

This will return the caption bar to the normal blue “Accounting” caption and subsequent processing will be for the current month.

The design of the End Of Year process allows you to access the EOY Period and return to normal processing as many times as required, however EOY journals are not applied until step three is completed.

STEP TWO - Zeroing Income & Expense Accounts

Setup

If you journal each financial year into a separate account you will need to create a ledger account for Profit/Loss for the year that is ending (e.g. PL1213). This is usually a Proprietorship account but get advice from your accountant if unsure.

If you journal the profit/loss for each year into the same Proprietorship account there is no need to create a new account.

You will be asked to confirm – Click the “Yes” button and journals will be generated to transfer all the June End Of Year Balances for Income And Expense accounts to the selected P & L GL Account.

Note: Once this has been done the Profit/Loss journal batch created can be viewed/printed via the ‘Journals’ function. Change the period you are viewing to ‘JunXX(EOY)’ and the batch will be listed, along with any other EOY journal batches entered.

STEP THREE - Applying EOY journals

Applying EOY Journals to current YTD figures

This process applies the End of Year journals entered in the first step to Year To Date figures.

In the Accounting Actions’ Menu, select Actions > End Of Year option.

Click the Apply EOY button.

The EOY journals will then be applied to the YTD figures for months following the ‘End Of Year’.

Once EOY has been applied the EOY period is effectively closed and Step One & Two buttons will be greyed out, however it is possible to re-open an EOY period by Un-applying the EOY. The Step Three button changes to ‘Un-apply EOY’ for this purpose.

Verification

Before checking anything, ensure you are in your current accounting period, i.e. the caption on the accounting screen does not include the words “EOY processing”. If not, exit STOCKyard and restart. If you have issues, call Outcross Systems Support on 1800 799 107.

Checking Step 2

To check that Income and Expense accounts have been zeroed for the current financial year, select an income or expense account and click ‘Activity’. Then click ‘All’ to view all journals. The Total for the Jun YY(EOY) entry should be 0.00.

Checking Step 3

Once you have completed step 2 verify that End Of Year journals have been applied correctly by printing a Trial Balance for the month following the End Of Year. End of Year journals will be included in the Year To Date balances of this month (The Income and Expense accounts will have the same value inboth the “Current” and “YTD” columns).

Important note: A second backup is recommended after completing the End of Year process.