Year-End Procedures

Product: WinTAM Series 6

The Year-End procedure automatically runs upon posting the last month of your fiscal year. This procedure zeroes out the income and expense accounts and places the net profit or loss in Retained Earnings. To close your year, follow the normal Month-End procedure with a few extra steps, detailed below.

Install Latest Updates

Before running Year-End, visit the Updates page and install all current updates for your version of TAM.

Scan all Databases

Run a scan of all databases 2-3 days before running Year-End. This allows adequate time to correct any potential problems. Scan Databases may be run manually through the DBMAINT utility on V6.3.0, or through DOSTAM-UT-2-2-1, or the Night Utilities menu on V6.2.0 and below. If you receive a Shifted Data Report as a result of running this utility, fax the report to Support at 708-534-1937 or 319-341-7789.

Notes:

  1. Shifted "N" and "P" records should correct themselves; there is no need to contact Support. For more information about the Scan Databases utility, access the Scan Databases DOSTAM Utility and Shifted Data Errors or the Database Maintenance Utility (DBMAINT.EXE) document. 
  2. If Night Utilities was run the night before doing Year-End and it has already scanned the databases, there is no need to run another scan on the databases.

Run a Year-End Balance Sheet or Income Statement

The option to print Year-End journal entries appears when the last month of the fiscal year is posted. To run a Year-End Balance Sheet, follow the procedure listed below:

TAM

  1. Access WinReports and run Type=Report-General Ledger, Choice=Balance Sheet
  2. Choose the Year-End option. 

DOSTAM

  1. Access DOSTAM-GL-13 with an accounting month of "YRE00" (where 00 is your fiscal Year-End). For example, if the year ends in December 2000, use YRE00. If your fiscal year ends in June 2001, after posting June of 2001, you would use the month of YRE01 to get the Year-End Balance Sheet for that fiscal year. 

Note: When running the Year-End Balance Sheet, the following message displays in a red box: "Reminder: 00 Year-End Procedure must have been run in order for values to be correct." This is not an error message. It is a warning message that displays regardless of whether the Year-End Procedure has been run or not. An Income Statement for the last month of your fiscal year includes the Year-End Net Profit/Loss figure. A "Full Year" Income Statement can be run as well.

Follow these steps to begin working in the new fiscal year without posting the last month of the current fiscal year 

  1. Initiate Month-End at the end of the calendar month in the last month of the fiscal year. 

Although Year-End is normally run at the end of the month, you can also run this prior to the 31st or after the 31st. Close-Day can be run for the range of dates being missed. Once the month is initiated, keep in mind that all activity (including installments processed and voids done) is filed in the new accounting month. If these items should be in the last month, then take necessary precautions, such as voiding and processing installments prior to changing the month in Close-Day, in the Signon menu, or when initiating Month-End. If you change the month without initiating Month-End, remember to Replicate the Chart of Accounts in DOSTAM-UT-6-7-4.

  1. Begin working in the new fiscal year. All general ledger accounts show a zero opening balance until the last month of the fiscal year has been posted. Also, the Balance Receivables Report shows a Year-to-Date difference until the balance for Accounts Receivable is brought forward by posting the last month of the fiscal year. 

Follow these steps if the last month of the fiscal year has been posted and Year-End adjustments need to be made 

  1. Backpost the adjustments. 

WinTAM: 

  1. Access Accounting, Journal, Backpost Adjustments
  2. Enter the backpost Journal Entry

DOSTAM: 

  1. Access GL-1-5
  2. Specify whether the adjustments affect non-cash (1) or cash accounts (2). If the Year-End adjustments affect cash, the entry to the cash account must be placed on the first line of the backpost entry. For entries affecting multiple cash accounts, separate backpost entries must be made. 
  1. Rerun the Balance Sheet, Income Statement, and Status of Accounts for months affected during the past and current fiscal year. 

Note: If there is a problem with these figures, contact Accounting Support for assistance in running the Rebuild General Ledger Balances utility to correct this problem.

Additional Year-End Procedures 

  1. Run and store a Year-End backup tape in your archives after posting the last month of your fiscal year. 
  2. Run a successful Night Utilities that includes packing and reindexing as well as scanning databases prior to closing the month. 
  3. Verify that you have a printed copy of the Balance Sheet and Income Statement on file for at least the last month of the fiscal year or, if desired, each month of the fiscal year you just closed. 
  4. Run an Aged Accounts Receivable Report at the end of your fiscal year, if desired. The Aged Receivables report cannot be recreated to balance back to a prior month. It must be run as of right now to match the GL. You cannot run these reports on the 15th of June and try and get it to match the 31st of May. If you want to get a report to balance as of May 31st, then the reports must be run on that day. For more information, refer to the Aged Receivables Report Balancing to the GL document. 
  5. Prevent a Retained Earnings Not Defined error during Year-End by checking the Retained Earnings account setup in DOSTAM-UT-6-1-1. The account should be set to Yes for All agencies and Yes to Allow in GL entry. Also check DOSTAM-UT-6-1-3 to make sure the account that you believe is Retained Earnings account is the same account set up as Retained Earnings in the required accounts. 
  6. Check your client accounts for accuracy. Once the month has been closed, there is no way to adjust the accounts in the prior month. 
  7. Enter writeoffs. Writeoffs needed after the month has been closed can be done by doing the writeoff in the current month, reversing the Journal Entry on the accounts receivable account in the current month, and then backposting the Journal Entry reflecting the adjustment to the Accounts Receivable. This should be the complete opposite of the entry, reversing it out in the current month. Run a Miscellaneous Production report for JE1 and JE2 transactions to get the exact amounts for the journal entries. 
  8. To prevent duplicate account errors while posting your Year-End, run the following utility: 
  1. Open an MS-DOS prompt and access the TAM drive. 
  2. Type CD\TAM and press [Enter]
  3. Type COPY GLEDGER.DBF *.xxx and press [Enter]
  4. Type SET DELETEREC=1 and press [Enter]
  5. Type DOUBLE and press [Enter]
  6. When the Ready Printer message displays, press [Enter] without changing the printer.
  7. When the utility finishes, type EXIT and press [Enter] to close the MS-DOS window. 

Note: Please call Accounting support if this utility needs to be run. This utility should be run only with the assistance of a support technician.

  1. Print additional copies of the Year-End Journal Entries if needed by following the steps below: 
  1. Click Start, Programs, Accessories, Notepad. Notepad Editor opens. 
  2. Click File on the menubar and select Open
  3. Select All Files in the Files of type dropdown box at the bottom. 
  4. Pull down the Look in dropdown box at the top and access the TAM drive. (If TAM is on F:, select the F: drive). 
  5. Double click to open the TAM folder. 
  6. Double click to open the SAV folder. 
  7. Double click to open the YEAREND folder. This lists the existing Year-End Journal Entry files. 
  8. Find the desired file by looking at the file names. For example, the YRENDA0.1 file indicates A0 is the year 2000 and 1 is agency 1. 
  9. Double click to open the correct file for the year and agency desired. 
  10. Click File on the menubar and select Print
  11. Click File on the menubar and select Exit to close the Notepad Editor

Note:  If you are re-printing these journal entries after you have made some backpost adjustments the year-end, this report will only show what was posted when you closed out your year.  If you need updated figures including any adjustments that you have made, run an income statement and that will show your figures including any adjustments.

Balance Sheet Problems 

If you run the Balance Sheet for the last month of your fiscal year and feel that the figures are incorrect, run a Status of Accounts Report for the same month and compare it to the Balance Sheet. If the two totals match, then the problem is not with the Balance Sheet Report; the problem possibly lies with an entry in one of your accounts. Is the Balance Sheet in balance (total assets= total liabilities + net worth)? If not, run the Balance Sheet backwards until you can find a month that is in balance. Try to track down the incorrect or missing entry and contact Accounting Support for assistance.

If the Status of Accounts Report balance does not match the account balances on your Balance Sheet for the last month of your fiscal year, contact Accounting Support for assistance.  

Common Year-End Questions and Answers 

If I close out on a day other than the 31st, what do I do about Close-Day and changing the date?

System date and accounting month are two separate dates. You can run Close-Day for a range encompassing the dates that are going to be gone over for the month. This processes any installments into the correct month. If you choose to change the accounting month through Close-Day to the next month, then you need to replicate the Chart of Accounts before exiting TAM. The Replicate Chart of Accounts Utility can be run at DOSTAM-UT-6-7-4 (V6.2.0 and below), or The Agency Manager for DOS-Utilities Menu-System Setup-Accounting Setup-7-4 (V6.3.0).

How do I run my Year-End financial reports, and what other reports do I need to run?

To run the Year-End financials:

Make sure that the Aged Receivables report is run based on the report mode of Balance to Month-End (as outlined in the Aged Receivables Report Balancing to the GL document). This report cannot be recreated later. All other reports should be run as needed by the agency.

When do I have to Replicate my Chart of Accounts?

The Chart of Accounts is automatically replicated when the month is initiated through the Month-End menu. The only time a manual Replicate is needed is if the month is advanced through Close-Day or Signon because the Month-End is not initiated at the end of the month but items need to be entered into the new month. The Replicate Chart of Accounts Utility can be run at DOSTAM-UT-6-7-4 ( V6.2.0 and below), or The Agency Manager for DOS-Utilities Menu-System Setup-Accounting Setup-7-4 (V6.3.0).

If you do not Replicate and change the date manually, you receive a Startup error listing missing accounts or you receive a message that accounts do not exist when trying to use them.

Follow the steps below to clear these errors:

TAM Series 6.0.3 Through 6.2.0 

  1. Open an MS-DOS prompt and access the TAM drive. (If TAM is on F:, type F: and press [Enter].)
  2. Type CD\TAM_EXE and press [Enter]
  3. Type DEL STARTUP.ERR and press [Enter]
  4. Type CD\TAM and press [Enter]
  5. Type SET NWC=1 and press [Enter]
  6. Type MENU and press [Enter]
  7. Replicate the Chart of Accounts. The Replicate Chart of Accounts Utility can be run at DOSTAM-UT-6-7-4 ( V6.2.0 and below). 
  8. Type EX from the main DOSTAM menu to exit back to the MS-DOS prompt. 
  9. Type EXIT and press [Enter] to close the MS-DOS window. Run Startup again or try to use the account. The error will no longer display. 

TAM Series 6.3.0 

  1. Open an MS-DOS prompt and access the TAM drive. (If TAM is on F:, type F: and press [Enter].)
  2. Type CD\TAM_EXE and press [Enter]
  3. Type DEL STARTUP.ERR and press [Enter]
  4. Type CD\WINTAM and press [Enter]
  5. Type SET NWC=1 and press [Enter]
  6. Type DOSMENU and press [Enter]
  7. Replicate the Chart of Accounts. The Replicate Chart of Accounts Utility can be run at the Agency Manager for DOS-Utilities Menu-System Setup-Accounting Setup-7-4
  8. Type EX to exit from the DOSTAM menu and close out of the Agency Manager for DOS. 
  9. Run Startup again or log into tam and try to use that account. 

Note: If you are still receiving an error, contact accounting support to get this taken care of.

When do I initiate my Month-End?

Initiating Month-End should normally be done on the last day of the fiscal year. This is not always possible for all agencies and, therefore, may be done at any time. If you manually change the month to the new month through Close-Day or Signon, remember to Replicate the Chart of Accounts. You can also Initiate Month-End to advance the month. The initiate process advances the month so that other users can work in the new month, but also provides the ability to change the month back for any entries that need to be made in the month that is currently being closed.

Do I need to do any utilities or backups differently for Year-End?

A few days before you plan to run your Year-End process, run a pack and reindex and scan all the TAM databases. If errors display during these utilities, Support will have enough time to correct problems before Year-End is run.

Validate Clients, Cash, and Accounts Receivable at least a week in advance if this is not done on a weekly basis. Running these on a regular basis is recommended, as this will prevent any delay at Year-End and make troubleshooting easier if any errors are addressed as they occur.

Is there anything else that I need to do differently for Year-End?

Year-End is incorporated into the Month-End process of the last month of your designated fiscal year. You should also run your Year-End financials and any other reports that you want a hardcopy of for the year. You may want to verify that your accounts are all set up correctly and that Retained Earnings is defined in Chart of Accounts Maintenance. Chart of Accounts Maintenance can be accessed through DOSTAM-UT-6-1-1 (V6.2.0 and below), or The Agency Manager for DOS-Utilities Menu-Accounting Setup-1-1 (V6.3.0). Aside from these steps, Year-End in TAM is just another Month-End process.

What happens to my account balances when I Replicate? How do I get my balances to pull forward?

The replication process has no affect on the General Ledger balances. It puts a shell copy of your current Chart of Accounts into the new fiscal year. The Balance Sheet accounts have their balance forwards carried into the new Chart of Accounts once the Month-End has been closed for the last month of your fiscal year.

I received an error message telling me that my Retained Earnings account is not defined, what do I do?

Check the accounts in Check GL Setup Options to verify the Retained Earnings required account in TAM. Check GL Setup options is available at DOSTAM-UT-6-8 (V6.2.0 and below), or The Agency Manager for DOS-Utilities Menu-System Setup-Accounting Setup-8 (V6.3.0). This account is not a standard number and it varies from agency to agency. After you note the account number for Retained Earnings, pull up the account in Chart of Accounts Maintenance. Chart of Accounts Maintenance can be accessed through DOSTAM-UT-6-1-1 (V6.2.0 and below), or The Agency Manager for DOS-Utilities Menu-Accounting Setup-1-1 (V6.3.0). Make sure that it says Yes to All agencies and that is says Yes to Allow in GL entry. Once these are verified, contact Accounting Support for a Rebuild to pull balances forward correctly.

My Year-End entries did not print correctly, how can I print another copy?

Print additional copies of the Year-End Journal Entries, if needed, by following the steps below:

  1. Click Start, Programs, Accessories, Notepad. Notepad Editor opens. 
  2. Click File on the menubar and select Open. 
  3. Select All Files in the Files of type dropdown box at the bottom. 
  4. Pull down the Look in dropdown box at the top and access the TAM drive. (If TAM is on F:, select the  F: and click Open.) 
  5. Double click to open the TAM folder. 
  6. Double click to open the SAV folder. 
  7. Double click to open the YEAREND folder. This will list the existing Year-End Journal Entry files. 
  8. Find the desired file by looking at the file names. For example, the YRENDA0.1 file indicates A0 is the year 2000 and 1 is agency 1. 
  9. Double click to open the correct file for the year and agency desired. 
  10. Click File on the menubar and select Print
  11. Pull down the File menu and click Exit to close the Notepad Editor

Note:  If you are re-printing these journal entries after you have made some backpost adjustments the year-end, this report will only show what was posted when you closed out your year.  If you need updated figures including any adjustments that you have made, run an income statement and that will show your figures including any adjustments.

Now that I have closed my year, I would like to clean up my Chart of Accounts. What do I need to do to accomplish this?

Please note the following prior to deleting accounts:

  1. Make sure that the account has a 0.00 balance and that there is no activity in the current year. Check this by running a Status of Accounts report in WinReports - General Ledger.  Select Yes to Regenerate MJEs in the current month. 
  2. Run the Journal Entry Defaults report in WinReports - General Ledger. Make sure that this account is not being used in any recurring J/Es that may be set up. If it is being used, then make sure that the entry is modified not to include this account under Accounting - Journals - Setup Recurring JEs. 
  3. Check to see if the account is needed for backposts. If this is an account that will be used for backposts, the account cannot be deleted. It also cannot be reused. 
  4. Remember that “A” level accounts cannot be changed to “T” level accounts and vice-versa. 

If the above criteria are met, you should be able to delete the account in Chart of Accounts Maintenance. Chart of Accounts Maintenance can be accessed through DOSTAM-UT-6-1-1 (V6.2.0 and below), or The Agency Manager for DOS-Utilities Menu-Accounting Setup-1-1 (V6.3.0).  If this is a cash account, delete the Journal first (in Chart of Accounts Maintenance, type J for Journal), and then delete the account.

I need to add a few new accounts to this year, I added them but now I cannot seem to access them in my entries. What did I do wrong?

Try Replicating Chart of Accounts manually. If this does not work, verify in Chart of Accounts Maintenance that the account is set up and is allowed in GL entry and in the agency that you are trying to use it in. Chart of Accounts Maintenance can be accessed through DOSTAM-UT-6-1-1 (V6.2.0 and below), or The Agency Manager for DOS-Utilities Menu-Accounting Setup-1-1 (V6.3.0). If you still have a problem, contact Accounting Support.

My Balance Sheet and Income Statement do not match my Status of Accounts or my figures are way off. What do I need to do since this is my Year-End?

Verify that the Balance Sheet is in balance. You can do this by making sure that the Total Assets=Total Liabilities + Net Worth.  If these balance, contact Accounting Support for assistance. 

If the Balance Sheet is out of balance, you need to run it month by month backwards to find a month where it is in balance. Contact Accounting Support with your findings and they will run a utility to correct the problem. You may also want to run a Trial Balance for the current month to make sure there is not a problem with any entry.

I have closed my Year-End and now my accountant wants me to do some client writeoffs. What options do I have?

  1. Enter the write-offs in the current month and leave them there. 
  2. If you need to show these writeoffs in a previous month or year, follow the steps below: 
  1. Enter the write-offs into your current month. 
  2. Run a Miscellaneous Production report for JE1s and JE2s for the current month. This will give you the total amount of all the items that were written off. 
  3. Enter a Journal Entry in the current month to back out the amount of the write-offs (typically debit Accounts Receivables and credit Write-off Expense). 
  4. Backpost a Journal Entry to the previous month to completely reverse the entry done in the current month (typically credit Accounts Receivable and debit to Write-off Expense).

Note: Accounts Receivable will be out of balance until all steps have been completed and the current month has been closed.

I closed my Year-End and my accountant wants me to backpost entries to accounts that did not exist last year. What do I do since they will not come up to use in my entry?

Add the account into the current Chart of Accounts, then Replicate Chart of Accounts manually. If this does not pull up the account, contact Accounting Support for assistance in adding the account into the previous year.

Last Revised:  February 20, 2008 09:21 AM

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