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Year End Close

  • 1.  Year End Close

    Posted Feb 04, 2020 09:43 AM
    ​This is our first year end close and we are ready to close the GL for 2019, but I was reading and found where it said that we should close Inv, AR and AP first?  Is this a must to close the GL?  What are the ramifications if not done.

    Thank you for you advise.


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    Gennie Livingston
    Vance Brothers, Inc
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    Academy - Online Interactive Learning from Experts


  • 2.  RE: Year End Close

    Posted Feb 05, 2020 08:29 AM
    I don't know if it's a real requirement, but it is highly advised.  The order makes sense if you think about it.  First you close inventory.  If you find any issues, you can investigate and make needed corrections.  Could be an AR invoice not allocated correctly or an AP invoice not allocated correctly.  Then you have AR and AP.  Lastly, should always be the GL.  If you are to close the GL first, you would have difficulty correcting any errors discovered when closing the other modules.

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    Josh Case
    Great Lakes Forest Products Inc
    Elkhart IN
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    Academy - Online Interactive Learning from Experts


  • 3.  RE: Year End Close

    GPUG ALL STAR
    Posted Feb 05, 2020 08:34 AM
      |   view attached
    Hi @Gennie Livingston If you are not using Inventory, then you have no need to worry about that​.

    The AR and AP Closes simply reset some of the inquiries on prior year totals, but has no impact on transactioning.

    If you are using Fixed Assets you DO need to close that first.

    Otherwise you are good to run the GL Closing.

    Here is an older but still relevant manual for Year End Close in GP (Its from last year), it should answer any of your questions.

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    Attachment(s)

    Academy - Online Interactive Learning from Experts


  • 4.  RE: Year End Close

    SILVER CONTRIBUTOR
    Posted Feb 06, 2020 10:43 AM
    Edited by Cathy Huggett Feb 06, 2020 10:45 AM
    Thanks Jo for sharing the YE Manual !   You're such a rock star!!


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    Cathy Huggett
    Accounting Manager
    Persolvent/Simek's
    St. Paul Park, MN
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    Academy - Online Interactive Learning from Experts


  • 5.  RE: Year End Close

    Posted Feb 06, 2020 10:55 AM

    Thank you all for you replies and especially for the manual.

     

    It is greatly appreciated!!

     

    Gennie Livingston

    Vance Brothers, Inc.

     

     




    Academy - Online Interactive Learning from Experts


  • 6.  RE: Year End Close

    TOP CONTRIBUTOR
    Posted Feb 05, 2020 09:06 AM
    Hi Gennie,

    Welcome to Great Plains.  :-)

    The purpose of closing the other modules first is to ensure that all the transactions in those modules have been entered and posted... and that the fiscal periods in each of them are closed for that year.  The GL will then contain all data that it should for the previous year and the risk of entering new data incorrectly in the old year will be avoided.

    Since this is your first closing, be sure to verify the GL account settings before closing the GL.  The Posting Type (Balance Sheet or Profit and Loss) determines whether the balance gets carried forward to the new year or gets zeroed out into retained earnings.

    Regards,

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    Don McCready
    Retired Controller and IT Director
    The Schaefer Group, Inc.
    Beavercreek OH
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    Academy - Online Interactive Learning from Experts


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