Financials Year-End
Processing
Paul Sterzinger
Senior Business Analyst
Lawson R&D
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Accounts Payable
• AP195 – Period Closing is run to insure all
transactions have been processed and interfaced to
the general ledger.
• After the last period is closed for the fiscal year, run
AP199 – Vendor Balance Year End
– Updates the new year period end dates on the vendor group.
– Transfers the current year vendor balances to last year.
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Accounts Payable
• Archiving/Purging Vendor Invoices
– Archiving invoices is used to speed up batch and on-line
performance (AP198).
• Moves historical invoice, distribution and payment records to
archive files.
– May be used instead of purging
– You can inquire and or report on archived invoices.
– Purged invoices permanently deletes records and archives
them to a csv file (AP300).
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Asset Management
• Make sure you are finished adding, adjusting, transferring and
disposing of asset records.
• Release transactions using AM170.
• Determine if the 40% tax rule applies to the depreciation
calculations.
– This rule requires that if 40% or more of all assets are placed into
service in the last fiscal quarter, special depreciation calculations
apply
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Asset Management
• 40% tax rule determination.
– Run AM220 to list assets added during the past year.
– Run the AM220 again for assets added during the last quarter.
– Compare the reports to determine if 40% of the assets placed
in service during the year were placed in the last quarter.
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Asset Management
• If the 40% rule applies, adjust the depreciation
conventions for the assets that were placed in service
during the fourth quarter of the year.
– Run AM125 – Mass Adjustments. On the Asset Book
Adjustment tab change the convention code to MQ (Mid
Quarter)
– Update the changes made in AM125 by running AP170 –
Processing Release
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Asset Management
• Continue running the normal period close process.
– Run AP180 - Depreciation Calculation.
– Run system reports and verify asset information.
– Once satisfied that the reports and assets are correct post
and close the period by running AM190 - Period Close.
– Running AM190 with the release parameter set to yes is
irreversible.
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Asset Management
• Run year end reports.
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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 Deprecation Report AM280
Book Comparison Report AM285
Tax Credit Report AM290
Recapture Report AM292
FASB Reconciliation Report AM295
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Asset Management
• Make sure you have run all reports. You can not run
them once year end is processed.
– Note: If you have depreciation history enabled for the books
you can use AM281 – Depreciation History Report to report
on previous year depreciation history
• Back up the data.
• Run AM195 – Year End Close to close out the year.
• Verify the year end was successful by opening
AM01.1 – Calendar and inquiring on the company
and book.
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Activities
• There are no mandatory procedures for year end
processing.
• Optional - run AC195-System Control to close
activities on a monthly basis.
– Closing the activities allows the users control over
transactions for balancing purposes.
– Most clients do not close activities because there is no back
posting functionality
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Accounts Receivable
• AR199 – Period Closing Report is also used for year
end processing.
– The AR199 is run with the year end parameter set to “Y”.
• In addition to normal period end processing the
AR199 will rolls the following balances from current
year to last year.
– Period Billed, Chargebacks, Credits, Write-offs and Paid
• Moves any value for the next year to the first period.
• Moves the year-to-date Invoice Payment Average
(IPA) and Days Beyond Terms (DBT) totals to last
year to update customer statistics.
• The AR199 should prompt you to run the year end
option for the last period
– Do NOT run the AR199 twice .
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Lawson General Ledger Year-End
Procedures
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Year-End Process Flow
Backup Lawson
Data
Verify Fin.
Stmts. for LY (2004)
•Run GL291, GL292
& GL293
Final Close all
periods of LY (2004)
•Run GL190 to post
all entries
•Run GL199 with
Final Status
Verify all subsystems
are closed in CY (2005)
•Required if using
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permission. control
Verify Fin Statements for Last Year (2004)
•
•
Verify totals
Verify company is in balance
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Final Close All Periods of Last Year (2004)
•
May want to verify year-end fin statements after running this
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Verify Subsystems are Closed in Current Year (2005)
•
•
Access from Drill around on Company field
Interface subsystem entries, then close subsystems
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Year-End Process Flow
Are you using
Currency
Exchange?
Yes
Run Currency
Revaluation (GL191)
No
•Run AP191 and AR196,
if applicable
Are you using
Currency
Translation?
Yes
Run GL195 or
GL196 to translate
multiple CUs
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into a common CU
No
Year-End Process Flow
Do you store
statistical
amounts/units
in Budgeting?
Yes
Roll statistical or
historical budgets
forward one year
using FB120
Backup Lawson
Data
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
No
Roll Statistical/Historical Budgets Forward
•
Roll statistical or historical budgets ahead one year so RW reports don’t
need to be modified
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Roll Statistical/Historical Budgets Forward
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Year-End Process Flow
Verify Year-End Fin.
Stmts. for CY (2005)
•GL291, GL292 & GL293
Review period end dates
for NY (2006)
•GL10.1
Close last period
of the current year
•GL199-Limited status
Verify Fin. Stmts.
for pd. 1, CY (2006)
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Verify Year-End Fin Statements for Current Year
(2005)
•
•
Verify totals
Verify company is in balance
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Review Period Ending Dates
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Close Last Period of Current Year (2005)
• Closes the last period and the year
• Rolls account balances forward
– Current year
– Next year
last year
current year
• Creates consolidation records for next year
• Calculates beg. balance for all BS accounts for next
year
• Creates a closing entry with a status of history in
period 99
– Undistributed RE
RE
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Close Year - Consolidation Company
• Doesn’t auto-reverse entry in next period
• Reverses out balance sheet account balances in
period 1
– Prepares system for translation in new year
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Year-End Closing Entry
•
Use Journal Control (GL45), Journal Analysis (GL41) or Trans. Analysis (GL90)
to display year-end closing entry
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Processing in NY before Closing CY
•
Select Next Yr Beg Bal prior to closing year to calc beg balances for the next
year
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Processing in NY before Closing CY
•
•
Use to bring adjustments from CY to NY prior to closing year
Can run multiple times for multiple batches of adjustments
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Verify Fin Statements for Period 1 (2006)
•
•
Verify totals
Verify company is in balance
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Year-End Process Flow
Adjust dates on CA
and RJ entries
•Use CA10.2 & GL70.2
to adjust dates for CY (2006)
Delete Transaction
History using GL300
Delete unused accounts
•Use GL122 for
posting accounts
•Use GL100 for
detail accounts
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Adjust Dates on CA Entries
•
May want to adjust ending dates beyond the end of the CY (2006)
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Adjust Dates on RJ Entries
•
May want to adjust ending dates beyond the end of the CY (2006)
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Delete Transaction History
•
•
Can delete unwanted transactions, balances & budgets
Can optionally save information in archive files
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Delete Unused Posting Accounts
•
Accounts must have no budgets or transactions for at least two years
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Delete Unused Detail Accounts
•
Accounts must have no budgets or transactions for at least two years
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Special Considerations – Period 13
• Can I use period 13 as an adjustments period?
– At least one day must be dedicated to this period
– Journal entries can be auto-reversed from period 12 to period
1, other entries cannot
– Spread action in budgeting spreads to all periods
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Special Consideration – Commitment
Accruals
• What is the purpose of Period Year End GL
Commitment Accrual?
– Optional process
– Updates period/year on outstanding commitments &
encumbrances
– Create accruals for outstanding commitments &
encumbrances
• Auto reverse accruals in next period
– Year-end – can create a budget journal entry for NY instead
of an accrual entry
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Related Knowledge Base Articles
• General Ledger Year End Closing Process
– Articles 83938, 74398, 532032, 550248
– What Happens When I Accrue Encumbrances & Commitments?
– Articles 73832, 100884
• Consolidation Company Year-end Entry
– Article 72115, 83940
• Performing Optional Year-end Procedures
– Article 532046, 92992, 73910
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
QUESTIONS ??
Paul Sterzinger
Senior Business Analyst
This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.