Closing the Financial Year
After completing the year end procedures and finalizing the financial statements, the financial year needs to be closed. This is to comply with legal and auditing requirements which is over and above the maintenance of open periods and requires its own dedicated action, the effect of which is almost irrevocable.
Financial Years must always be closed sequentially in ascending order.
The normal process is that all the periods for the year are first closed from within the Manage Periods (FCP) option. This function lists the business units that are using calendars and displays the earliest open year for each.
Years are closed in ascending sequence and there can be no gaps. For example, if the years 2010-2014 are open then 2010 must be closed before 2011, then 2012 can be closed and so on.
You can also select a business unit and re-open the previous year. This option works backwards in time from the earliest open year and is only the first stage in making the year available for posting. To complete the process you must select .
Closing the Financial Year
To close the financial year, from SunSystems select Close Financial Year (FCY) and select the Calendar Code.
Enter the business unit from and to and the earliest open year from and to. Click .
The business units are listed in Business Unit Code order, displaying the earliest year that is open for each business unit irrespective of the calendar.
The following columns are displayed:
- Business Unit Code
- Description
- Earliest Open Year
- Calendar
- Periods Open
- End of the Financial Year
You cannot close multiple years at once. Each year needs to be closed individually. Once you have selected the required year select . A confirmation message is displayed, 'Year YYYY in Business Unit will be closed. Do you wish to continue?' Select to close the financial year.
If there are any open periods in the year then the following message is displayed, 'The Year cannot be closed when there are open periods'.
Re-opening the Financial Year
If a financial year has been closed and subsequently needs to be re-opened you can opt to use the option from the menu within Close Financial Year (FCY).
SunSystems first validates that the previous year to the selected earliest open year exists. If it does, the following message is displayed, 'YYYY in Business Unit will be opened. Do you wish to continue?' Select to re-open the financial year.
If the previous year to the selected earliest open year does not exist then the following message is displayed, ˜The previous year does not exist' and the financial year will not be re-opened.