GL Closing

• Overview
• Add or Amend Activities
• Activity Sign-Off
• Period Closing
• Year End Processing
• • Request the GL Year End Process EY1
  • Request the GL Path Balances Rebuild EP1
  • Request the GL Group Category Rebuild Process EP2
  • Close the Year

Overview

This section explains how to perform the following tasks, which relate to closing:

• Add or amend activities
• Sign off activities
• Close periods
• Perform year end processes
• Close the year

Add or Amend Activities

You can add or amend an activity before you sign-off on activities. The user code you enter on the Activity screen MEAN must be set up on the User screen MAFD.

Activity Sign-Off

Use this option to sign-off an activity, for example, extracting the trial balance before closing a period or year. This indicates you have completed your specific task related to closing a period or year.

Period Closing

With the exception of the last period, you should close the period at the end of each period. This causes the Current Period Number on the Company Controls screen MEAB to move forward one increment. The system also resets the Activity Codes table for the next period.

Year End Processing

When you reach the last period of the year, you must run the Year End process to move the period on to period 1 for the new year. You must perform the following four tasks in the order they appear before closing the year:

• Request the GL Year End process, EY1.
• Request the GL Path Balance Rebuild, EP1.
• Request the GL Group Category Rebuild process, EP2.

NOTE Completing the above tasks positions your GL at the first period of the new year. Perform the following tasks at your convenience. You must complete the two following tasks before running another Year End process.

• Enter all year end adjustments.
• Close the year (see below for an explanation of this action).

Request the GL Year End Process EY1

Submitting the GL Year End process causes the following actions:

• The system creates an adjustment period, which is the last period number of the year, incremented by one. The adjustment period allows you to post adjustments without affecting already closed periods.
• The GL starts operating in period one of the next year. Any adjustments will post to the adjustment period for the last year and the relevant account codes are automatically updated.
• The system adds the net effect of all P&L account codes to the balance in the Retained Earnings account. The Retained Earnings account is defined in Close Out on the Ledger Control screen MEAD. The sum of these two becomes the opening Retained Earnings balance for the new year.
• The system moves balances for BS account codes forward into the opening balance for period one.
• The system purges path key balances that are older than the new year less the number of history balances specified on the GL Company Controls screen MEAB.

See Background Processing for more information on submitting processes.

Request the GL Path Balances Rebuild EP1

Process EP1 can either delete the balance or delete and rebuild the balance held against a non 00 path. You cannot rebuild any system or user-defined path which contains an analysis code. The system automatically initiates this process when you update the path code flag.

See Background Processing for more information on submitting processes.

Request the GL Group Category Rebuild Process EP2

You must rebuild balances at a group level using the GL Group Category Rebuild process when the last period of the year has been closed or if you change a nominal's group and/or category.

If Nominal Balances is checked on the Element Definition screen MECF, process EP2 rebuilds nominal balances. See Background Processing for more information on submitting processes.

Close the Year

After you have submitted requests EY1, EP1 and EP2, you can close the year. This closes the adjustment period and prevents further postings to the adjustment period of the closed year. This should ONLY be performed once all required year End Adjustments have been actioned as once closed, a year cannot be re-opened.

See also

General Ledger Home Page