Change an Agency's Fiscal Year (includes Zap Instructions)

Product: WinTAM Series 6

This document takes you through the steps to change an agency’s fiscal year. Use these instructions whether you are changing from a calendar to a non-calendar year or vice versa. Changing the fiscal year requires that your completely zap your general ledger, meaning all prior general ledger history is cleared off the system. Read this entire document thoroughly before continuing.

This procedure should be run only under the guidance of an Applied Systems support technician. Accounting support requests that you schedule an appointment at least 2 weeks before you plan to change your fiscal year.

When you normally complete the fiscal year, the Year-End procedure zeros out the income and expense accounts and transfers the net profit or loss to retained earnings. However, since this fiscal year is a shortened one, you will not be able to run this procedure, and have to enter the JEs manually.

You should do the following procedure after you have posted the current month. To change your Agency’s fiscal year you need to do the following:

Follow the steps below. Make sure everyone is out of the system before you attempt this procedure and also make sure that you have you have a good backup.

Manually Move Net Profit or Loss to Retained Earnings

  1. Make a backup of your system’s data.
  2. Make sure that you have completed the Month-End procedure.
  3. Run the Status of Accounts Report for all accounts and all accounting months. This is necessary because it will be your only source of reference of prior general ledger activity in each account.
  4. Run the Cash Journal Entries Report for all cash accounts and all accounting months. This is necessary because it will be you only source of reference after the databases are emptied.
  5. Make sure that you have run an Income Statement and Balance Sheet for all prior accounting months. If you are missing any of these financials, rerun them. This is necessary because after the General Ledger Zap, the data will be gone and you will not be able to rerun these reports.
  6. Enter your manual Year-End using WinTAM Home Base - Accounting - Journal Entries - Backpost Adjustments or DOSTAM-GL-1-5-1. Make the backpost journal entry to the month that you just posted. To do so, locate the Income Statement for the last month of your shortened fiscal year. Zero out all income and expense accounts by entering a reversing entry for each income and expense account with a balance.
  7. Enter the net profit or loss on the income statement into the appropriate retained earnings account. To do so, look at the year to date figures found on the income statement. Use the following rules when making the entry.
  1. While in the backpost menu, select to view the journal entry and print it. After verifying the entries are correct, post the backpost entry (in DOSTAM this is done with separate menu options, in WinTAM, the JE can be printed and accepted from the same menu).
  2. Rerun your financials (Status of Accounts, Balance Sheet and Income Statement).

Zap the General Ledger

You have two choices when you Zap the General Ledger:

Before the Zap

Applied Systems recommends the following steps. Should you decide that some of the items are not necessary for your agency, you may choose to omit them, but remember that the hard copies of the reports will be all you have to refer to in the future. At the end of this document are worksheets that must be completed and faxed to the support department prior to beginning the Zap procedure.

  1. Complete and verify a backup.
  2. Run the Aged Receivables report.
  3. WinTAM

DOSTAM

  1. Print the Chart of Accounts.
  2. WinTAM

DOSTAM

  1. Run the Client History report
  2. WinTAM

DOSTAM

  1. Obtain a list of installed User Defined JEs. From DOSTAM select UT-6-3.
  1. Run a Status Accounts report for all accounts for all years on file.
  2. WinTAM

DOSTAM

  1. Run the Stay in Balance Checks for Accounts Receivable. From the Month-End menu, select In-balance checks.
  2. Run the Stay in Balance Checks for Cash Journals. From the Month-End menu, In-balance checks.
  3. Run the Checkbook Reconciliation Worksheet and verify that you are in balance.
  1. Print the GL Setup Options. From DOSTAM selectUT-6-8.
  2. Complete the Zap Worksheets.
  3. Verify that all updates have been installed from the Updates page.
  4. Fax the completed Zap Worksheets and GL Setup Options report to your appointed accounting support technician.

Run the Zap Procedure

  1. All users must exit completely out of TAM.
  2. Access DOSTAM UT-3 Support Utilities.
  3. Enter the Support Technician’s Name, then the Access Code. (The support technician provides the correct code.)
  4. Select4 Empty Files/Zero Balances.
  5. Select 2 OR 3.
  6. Select 2 Zap General Ledger and Leave Chart of Accounts (to keep the Chart of Accounts) OR 3 Zap General Ledger Including Chart of Accounts (to Zap the Chart of Accounts).
  7. The system proceeds and empties the Database files. When the utility is complete, the system suggests that you reindex all files (DOSTAM-UT-2-1-1-1 ).

After the Zap

Complete the following steps. You need the worksheets that you faxed to support to begin this part of the process.

Note: you must complete steps 1-10 before exiting out of the system installation menu. Failure to do so results in startup errors and nobody is granted access to The Agency Manager.

  1. Open an MS_DOS prompt, access your TAM drive and the \TAM directory.
  2. Type SYS_INST and Enter
  3. Select Yes to proceed.
  4. Enter the EXECUTIVE USERCODE andPASSWORD.
  5. Select 2-1 Install Initial Accounting Month.
  6. Enter the current accounting month.
  7. Select 2 Install Agency Structure.
  8. Access options option 2 Add/Revise Agency
  9. Change the agency's fiscal year to the correct fiscal year.
  10. Select 5 Chart of Accounts Maintenance. Complete this option only if you select to Zap the Chart of Accounts.
  1. Select 6-Enter General Ledger Opening Balances.
  2. Select 7-Enter Payroll Reports Installation if you use this option.
  1. End all the way out back to the TAM prompt
  2. Re-enter TAM. 
  3. Access UT-6-3
  4. Enter any of the User-Defined Transactions that you want to use.
  5. Reindex all files through DOSTAM-UT-2-1-1-1.

Note: It is imperative that the GL Opening Balance for Accounts Receivables and the total of the Customer Opening Balances match. If not, you will never be able to balance your Account Receivables. If you were out of balance prior to the Zap, simply re-entering the same customer and GL balances from before the Zap as your new opening balances does not put you into balance. The agency must make any necessary adjustments to the customer balance and/or General Ledger Account balance to ensure that they match. Applied Systems cannot determine opening balances for you.

Note: After the GL Zap, your reconciliation worksheet will not balance to your bank statement until all of the outstanding items (from prior to the Zap) have cleared.

Zap Worksheets

Worksheet - Agency Structure

(If you have more than 1 agency or 4 branches, make additional copies of this worksheet)

Agency #

 

Agency Name

 

Attn

 

City, St, Zip

 

Phone Number

 
Fiscal Accounting Year  

 

Branch # Branch #
Name Name
Attn Attn
Address Address
City, St, Zip City, St, Zip
Phone Phone

 

Branch # Branch #
Name Name
Attn Attn
Address Address
City, St, Zip City, St, Zip
Phone Phone

Worksheets - Departments

1. H.
2. I.
3. J.
4. K.
5. L.
6. M.
7. N.
8. O.
9. P.
A. Q.
B. R.
C. S.
D. T.
E. U.
F. V.
G. W.

Worksheet – Month-End Options

Month-End Journal Entries

  SYSTEM GENERATED Month-End Journal Entries
  MANUAL Month-End Journal Entries

Agency Bill Accounting

  ACCRUE Agency Bill Income
  CASH BASIS – Include Partially Paid Items
  CASH BASIS – Only Fully paid items

Direct Bill Accounting

  ACCRUE Direct Bill Income
  CASH BASIS Direct Bill Income

Producer Payment Method – (Agency Billed Business)

  Pay on INVOICED items
  Pay on PARTIALLY PAID items

If Yes, will you be deferring producer commissions? Y / N

  Pay on FULLY PAID Items

If Yes, will be you be deferring producer commissions? Y / N

  Allocate 100% of commission to producers? Y / N
  Generate Month-End Journal Entry for producers? Y / N

Producer Payment Method – (Direct Billed Business)

  Pay on INVOICED items
  Pay on PAID items

If Yes, will you be deferring commissions? Y / N

Company Payables Reconciliation

  Reconcile company payable items in detail
  Do not reconcile company payable items in detail

Direct Bill Reconciliation

  Transact and do not reconcile
  Transact and reconcile commissions received
  Do not reconcile, but record commission received

Income Posting Breakdown

  No breakdown; single account
  By policy status: NEW, REN, etc.
  By user defined policy type class
  By producer code
  By company code

Worksheet - Account Groups

Groups are used to subtotal accounts on your Balance Sheet and Income Statement. For example, you may have many types of Asset Accounts but want to group them into Current Assets, Fixed Assets and Other Assets. Assigning a different group number to the different accounts in your General Ledger will allow you to accomplish this.

Example:

Group #

Description

   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   

Worksheet - Chart of Accounts

Make copies of this worksheet to complete entire chart of accounts

Acct# Title Level Type Group Balance
           

Is account a cash journal? Y / N (If yes, complete cash journal worksheet.)

Acct# Title Level Type Group Balance
           

Is account a cash journal? Y / N (If yes, complete cash journal worksheet.)

Acct# Title Level Type Group Balance
           

Is account a cash journal? Y / N (If yes, complete cash journal worksheet.)

Acct# Title Level Type Group Balance
           

Is account a cash journal? Y / N (If yes, complete cash journal worksheet.)

Acct# Title Level Type Group Balance
           

Is account a cash journal? Y / N (If yes, complete cash journal worksheet.)

Acct# Title Level Type Group Balance
           

Is account a cash journal? Y / N (if yes, complete cash journal worksheet)

Acct# Title Level Type Group Balance
           

Is account a cash journal? Y / N (if yes, complete cash journal worksheet)

Worksheet - Cash Journals

Make a copy for each cash journal you are setting up

Cash Journal #  
GL Account Number  
Bank Account Number  
Total Bank Account Balance  
Last Check Number  
Last Deposit Number  
Last Misc. Withdrawal  
Last Check Printed  

Agencies Sharing Cash Journal:

# Agency’s portion of balance # Agency’s portion of balance # Agency’s portion of balance
1 C N
2 D O
3 E P
4 F Q
5 G R
6 H S
7 I T
8 J U
9 K V
A L W
B M  

Worksheet - Required General Ledger Accounts

Required Account Account Number Type
Accounts Receivable   1
Company Payable Major Account   2
Producer Payable Major Account   2
Agency Fee Income   4
Service Charge Income   4
Producer Expense   5
Broker Expense   5
Bad Debt Expense/Allowance   5
Waive Small Balance Account   5
Retained Earnings   3
Transfer Account   1
Binder Bill Account   2
Pending Payables Account   2
Discounts Taken Expense   5
Payables Write-off Account   4 or 5
P & C Income   4
Direct Bill Commission Receivables

Used only if accruing direct bill

  1
Direct Bill Commission Income

Used only if accruing direct bill

  4
Unearned Commission Income

Used only if Cash basis for agency bill

  1 or 2
Earned Commission Income

Used only if Cash basis for agency bill

  4

Last Revised: March 20, 2008 10:49 AM

SWE26438