Closing year-end

At the end of your company's fiscal year, you must close year-end. This procedure outlines the process for conducting year-end closing.

Before you can conduct year-end closing, you must be finished adding, adjusting, transferring, and disposing of asset records.

Close year-end

Release unreleased additions, adjustments, transfers, and disposals by running Processing Release (AM170).

AM170 edits and releases all the unreleased asset processing done during the current period and transfers journal entries to the General Ledger. You must run AM170 before you can continue with closing year-end.

Determine if the 40% tax rule applies to the depreciation calculations.

Access Addition Report (AM220).
Run AM220 to list assets added during the past year. Specify this information:

In-Service From Date, In-Service To Date

Specify the beginning and end dates for the period you want to report on.

Property

Specify or select P (Personal) as the type of property you want included in the report.
Run AM220 to track assets added in the last quarter of the same year you specified in step 2b.

Manually compare the reports from steps 2b and 2c to determine if more than 40 percent of the assets placed in service during the year were placed in the last quarter.


If	Then
More than 40 percent of the assets were placed in service during the last quarter	The 40% rule applies to you. You must adjust the tax book conventions. See step 3 for instructions.
Less than 40 percent of the assets were placed in service during the last quarter	The 40% rule does not apply to you. You may continue the year-end closing by moving on to step 4.

Conditional. If the 40% rule applies to your company, adjust the depreciation conventions for the assets that were placed in service during the fourth quarter of the year.
1. Access Mass Adjustments (AM125).
2. In the Convention field on the Asset Book Adjustments tab, change the convention code to MQ (Mid Quarter).
3. Select the Change form action.
4. Update the changes made in AM125 by running Processing Release (AM170).
  
  You have finished adjusting depreciation conventions. You can now continue with routine year-end closing by moving on to step 4.
Calculate the last period's depreciation by running Depreciation Calculation and Listing (AM180).

Specify this information:

Book, Book Group

To run AM180, you must specify a book or a book group. AM180 then calculates the current period's depreciation for the book or book group you selected.

Company, Company Group

You must specify the company or the company group for the book or book group.
Reconcile and verify asset information by running the appropriate reports. These reports are recommended. Related reports and inquiries
- Addition Report (AM220)
- Adjustment Report (AM225)
- Transfer Report (AM230)
- Item Transfer Report (AM235)
- Disposal Report (AM240)
- Item Disposal Report (AM245)
- Asset Report (AM260)
- Account Balance Report (AM270)
- Transaction Report (AM275)
- Activity Report (AM277)
- Current Year Depreciation Report (AM280)
- Book Comparison Report (AM285)
Based on the results of step 5, revise asset records as needed.

Note: If you have depreciation history enabled for the books, you can use Depreciation History Report (AM281) to report on previous year depreciation history.
Back up the data. After you have closed the period, you can no longer generate reports showing previous period depreciation unless you have depreciation history enabled for the book.
Close the last period and transfer journal entries by running Period Close (AM190). Specify this information:

Release

To review the journal entries before they are posted to the General Ledger, select No with Error Report (N) in this field and run AM190. AM190 will produce a list of journal entries and an error report, but will not post to the General Ledger. At this point you can still revise the asset records and correct errors if necessary.

To post journal entries to General Ledger with depreciation amounts and close the period, and create an error report, select Yes with Error Report (R) in this field and run AM190.

Note: The Yes With Error Report option can impact the run time and performance of AM190. Consider your time constraints and the number of assets before you select the Yes With Error Report option.

You can also select Yes without Error Report (Y), which posts journal entries to General Ledger with depreciation amounts and closes the period without the error report.

Running AM190 with the Release field set to Yes is irreversible. Ensure you are ready for this step.

Book, Book Group

Select a book or a book group.

Company, Company Group

Select a company or a company group.
Run year-end reports. Related reports and inquiries
- 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 Depreciation Report (AM280)
- Book Comparison Report (AM285)
- Tax Credit Report (AM290)
- Recapture Report (AM292)
- FASB Reconciliation Report (AM295)
  
  Note: If you have depreciation history enabled for the books, you can use Depreciation History Report (AM281) to report on previous year depreciation history.
Back up the data. After you have closed year-end, you can no longer generate reports showing year-to-date depreciation for the year you are closing, unless you have the depreciation history feature enabled for the book.
Report Close the year by running Year End Close (AM195).

Optional. Verify that the year closed correctly.

You can verify that the year-end close has been successful by opening Calendar (AM01.1) and inquiring on the company and book.


If	Then
The calendar shows the calendar for the new fiscal year but not the fiscal year you closed	The year closed correctly, and you are finished with the year-end close procedure.
The calendar for the year you tried to close is visible	The year-end close has not been completed. Review the year-end close process again.