General Ledger Period Ending Procedures

This section lists the steps for the day-end, month-end, and year-end procedures that are necessary for updating general ledger.

Note: For a complete checklist of period-ending procedures, refer to Key OPs. To ensure that you always have the most accurate, up-to-date information, Key OPs publishes period-ending procedures each November.

 

Day-End Procedures

  1. Print the (O) A/R Batch Report, and release the batch. See Printing an A/R Batch Report (Custom). If the Auto Post field in the (L2) screen is set to Y, the information automatically flows to the G/L batch file. If the Auto Post field is set to N, you must manually post the information from this report in the General Ledger Posting window.

  2. If you are using the A/P module, print the (QR) A/P Batch Report and release the batch. See Printing the A/P Batch Report. If the Auto Post field in the (L2) screen is set to Y, the information automatically flows to the G/L batch file. If the Auto Post field is set to N, you must manually post the information from this report in the General Ledger Posting window.

  3. Print the (QR) A/P Report and release the checks. See Printing the A/P Batch Report and Releasing A/P Checks. If the Auto Post field in the (L2) screen is set to Y, the information automatically flows to the G/L batch file. If the Auto Post field is set to N, you must manually post the information from this report in the General Ledger Posting window. We recommend that you do this during the day, so that you can check the accuracy of the information.

  4. Print the (V) Payroll Register Report and release payroll checks. If the Auto Post field is set to Y, the information automatically flows to the G/L batch file. If the Auto Post field is set to N, you must manually post the information in the General Ledger Posting window. This is done only at the end of your pay period.

  5. Manually post or make corrections to any transactions in the General Ledger Posting window.

Note:  The above steps must be done before you release the G/L Batch Report.

  1. Print the (WA) G/L Batch Report without releasing it, and verify that it is balanced and accurate. If there are adjustments to be made, you can make the corrections in the General Ledger Posting window. See Printing the General Ledger Batch Report.

  2. Print the (WA) G/L Batch Report and release the batches. All the information in the G/L batch file flows to the GL-MASTER file. All G/L accounts are updated with this information from the batch file. See Releasing General Ledger Batches.

Month-End Procedures

  1. At the end of the business period, perform your regular day-end procedures.

Note:  To create finance charges, you should do so before releasing the batches in A/R. You create finance charges by running the (O) Finance Charge Report. (This step is optional. See Calculating Finance Charges (Custom).) This calculates and posts finance charges to the customers' accounts.

  1. After you release the batches, reset the Current Period field in the (L2) screen.

Note: If you perform your month-end procedures through the (MK) Period End Functions screen, the period in the Current Period field is automatically updated.

 

Year-End Procedures

With the DDMS G/L application, you can close out the old fiscal year and begin to make current postings to the new year. Any postings for the old fiscal year can automatically be posted to the old year. These are posted to business period 12 and 13 for the prior year. When you release these batches with the G/L Batch Report, you must specify the correct period and year.

  1. Perform the month-end procedures.

  2. Reset summaries. When you reset summaries, the system reads the GL-MASTER file and rewrites the totals that are stored in the file CHARTFILE. The totals are used when printing financial reports and journal reports (Level 1 through 4) in the (W) screen. Resetting summaries is done through the Chart of Accounts Special dialog box. For instructions, refer to Resetting Chart of Accounts Totals.

  3. Print a Trial Balance Report. The G/L Trial Balance Report shows all posting details and totals for each general ledger account. This report is part of your permanent audit trail. You should print this report for all profit centers and request full detail. You can save time by specifying Y in the Suppress Zero Accounts field of the (W) screen so that accounts with zero balances are not printed. The Trial Balance Report is printed through the (W) screen. For more information, refer to Printing the General Ledger Journal Report.

  4. Copy and rename BUDGETFILE and CHARTFILE so that you have a record of that year’s chart of accounts information. For details on copying a file, refer to System Utilities.

  5. Create a tape backup. You can save information from your CHARTFILE and the GL-MASTER file by creating a tape backup. For more information about creating a tape backup, refer to Backing Up Files.

  6. View the Carry Forward box in the Chart of Accounts Special dialog box. Verify that Y is specified for your balance sheet accounts and that N is specified for all of your income accounts.

  7. Execute the Year-End Action Code in the (J) screen. This is a dedicated function. For instructions, see Executing the Year-End Procedure.

  8. Specify the new file names for GL-MASTER, BUDGETFILE, and CHARTFILE for the year you are closing. This is done in the (LJ1) General Ledger Posting screen. For details, go to In the (LJ1) Screen.