The process needs to be run in single sign-on mode, so make sure everyone is logged out of the company, and then log in with a supervisor password.
1. To start the New Year process: Cake Menu – Select Change -> New Year
2. Pie verifies that the last financial period has transactions, that is, whether it is appropriate to run the end of the year. If there are no transactions Pastel Accounting notifies you with a message.
3. The Pastel Year-End Wizard screen opens. Always make a backup before you start your New Year’s Eve. Even if you have already made a backup, do it now by clicking the Backup button.
4. The file backup screen opens.
5. On the File Backup screen, select a directory to back up and click process. A. For Verify method, select Ensure files are readable. b. For images: Select Image Backup.
6. Because we selected to make sure the files were readable, the backup process notifies us that it has completed compressing our data files and is about to test that this backup is readable. (This is done because it can happen that a backup is saved to bad sectors on the hard drive and cannot be restored – this procedure verifies that the files are readable.)
7. Once the backup is complete you will be returned to the Year End Wizard screen, click Next.
8. If there are open batches, the Wizard will display an error and the user will need to update the open batches.
– To view Open Batches: select Cake Menu – View – Open Batches
– Open quote sales order batches can be ignored because they do not create financial entries, but any type of transaction will need to be updated (including POS batches)
– The marks in the All Users column are fine, but there should be no marks in any other user column when you try to run the Wizard again.
9. The Copy Company to Another Company screen. The selection here is a matter of personal preference, but I personally like to copy the company to a new company (give it a name that indicates the new financial year) and do the year-end process at that new company. This allows users full access to historical information BUT requires year-end auditors’ adjustments to be entered in both companies, this is to ensure that the closing trial balance in one company matches the trial balance. opening in the new company. More effort, yes, but definitely beneficial when you want to analyze years and years of historical data, as this approach ensures that you don’t miss any historical detail. -Select Create a new company called -Enter the name of the new company (8 characters) -Select Run year end at new company
10. If you have chosen a 13-period fiscal year setup, with 13 being the first period of the new year, Pastel will ask if you want to copy the budgets from the periods to the new year. Make a selection and continue.
11. The Print Reports screen opens, reminding us of the most important reports that must be printed before starting the end-of-year process, these being: a. Trial balance b. income statement vs. Balance sheet d. Age analysis of customers and suppliers e. Detailed ledger for all accounts
12. The What’s the Year screen opens. This screen tells us exactly what the Pie Accounting Year-End Function does. Please read this to see if any alarm bells go off, but the effects listed are standard for all accounting systems. We are almost done%uF04A. Click Next.
13. The Confirm Operation screen opens, this screen is your final confirmation that you want to run the year-end procedure. If you are sure, click Process.
14. The end-of-year procedure is run and confirms that it is complete. If this process is interrupted, for example by a power outage, restore the previously created backup and start this process again.
15. Depending on your selection related to copy companies and which company to do the New Year’s Eve, you will find yourself in the right company to process New Year’s transactions.
Pie Accounting Year-End Procedure: Effect What the Year-End Procedure Does… The Year-End Procedure does the following:
1) General Ledger Balances For income statement accounts, balances from the current year are carried over to the prior year. For balance sheet accounts, last year’s balances are consolidated as a total and current balances are carried over to the prior year. Balances for the current year are set to zero. The system posts the profit or loss for the year to the retained income account.
2) Customer and supplier balances Balances from last year are consolidated as a total and current balances are carried over to the previous year. Current sales/purchase scales carry over to last year. This year the sales/purchases balances and values become zero.
3) General Ledger, Customer and Vendor Transactions The system removes transactions from the last year. This year’s transactions are converted to last year’s transactions, and the system creates a new, empty transaction file for the current year. On hold invoices have their period set to period one.
4) Inventory costs, sales and quantity values The system accumulates them in the last year’s totals and the present values become zero.
5) Periods The system increments the years by one year in the period table and adjusts the end dates of the periods if necessary, for example, for leap years. The system sets the current period to one for single period users. 6) Move period 13 If you set period 13 as the first period of the new year, the system transfers the transactions and balances from period 13 to period one of the new year.
Preparation Accounting Cake
What should you do first…
1) Update Open Batches – You cannot process year-end if you have open batches in your system.
2) Back up your business – We cannot overstate the importance of this step. You should keep this backup and NEVER overwrite it.
3) Make impressions:
– Trial balance for the year.
– Balance of the exercise.
– Detailed ledger for all accounts and all periods.
– Customer and supplier age analysis reports.
– Any other report you deem necessary.
4) Be sure to specify a retained earnings account
5) Copy the company to a new company: This is optional; we highly recommend it. To run the year-end procedure The system first validates the following:
– You have to be a supervisor.
– The Retained Earnings Account must exist.
– There can be no open batches.
– If there are no transactions in the last period of the current fiscal year, the system notifies you, since in all probability the closing of the fiscal year should not be running.
– The End of Year Backup screen appears: The Confirm Operation screen appears. Click the Process button to perform the end of the year, or click the Cancel button to leave the function unprocessed.
