Preparing for Year End in Finance

As the end of the calendar year approaches, many of you are preparing to close your financial year in Baan. To assist you in preparing for this, Baan Support has created the information below. Our goal with this list is to uncover and clear up as many situations as possible prior to year end so that when you’re ready to close, everything goes smoothly.

This list is derived from cases we typically see in conjunction with the year-end process. It is not intended to be a complete list of everything required in conjunction with year-end.

Should you have any questions on anything contained in this document, please contact Finance Support at 800/925-2226.

PRE-YEAR END CHECKS/STEPS:

1. Depreciation has been run (if applicable), is correct and has been posted.

2. All Transactions for the year to be closed should be posted/entered and finalized. No entries can be made to a closed year.

Finance Batch Related:

What to Do

Session to Use

Special Settings

Frequency

Finalize Batches

tfgld1110m000

All

Daily

Check for erroneous batches

BaanIV

tfgld1506m000

BaanV

tfgld1106m000

or tfgld1401m000 and zoom to tfgld1502s000

NA

Weekly; Daily the week prior to your month end

Run rebuild

tfgld3206m000

Monthly

Finance Other:

What to Do

Session to Use

Special Settings

Frequency

Control Account Checklist ACP to ensure open items matches ledger

tfacp2415m000

Wide open except Print Differences Only = Yes

Monthly

Control Account Checklist ACR to ensure open items matches ledger

tfacr2415m000

Wide open except Print Differences Only = Yes

Monthly

Print Receivable Invoices Checklist to ensure AP Accrual Account matches ledger (requires other sessions to be run if not used on a regular basis; see “Informational solutions” below if you are unfamiliar with the sessions involved in this process.)

tfacp1438m000

Wide open except Print Differences Only = Yes

Monthly

Print Receivable Invoices

tfacr1432m000

Wide open except Print Differences Only = Yes

Monthly

Finance Integration Related:

What to Do

Session to Use

Special Settings

Frequency

Post all Integrations

tfgld4200m000

Wide Open for Current Fiscal Year

Daily

Check for Unposted and Erroneous Integrations

tfgld4410m000

Wide Open except set Trans. Status = Unposted to Erroneous

Weekly; Daily the week prior to your month end

Check Integration Tables

BaanIV

otfcor0615

BaanV

tfgld4532m000 and tfgld4410m000 for unposted and error

NA

Monthly

Resolve all Integration errors:

Common Integration Errors:

Error

Remedy

Cannot find Dimension Code for XXX, mandatory link…

Setup required in Maintain Options by Integration Element (tfgld4121m000)

Invalid dimension

Setup required in Maintain Dimension Ranges by Ledger Account (tfgld0109m000)

Ledger Account not found

Setup required in Maintain Inventory and WIP Accounts (tdinv8150m000 or if PCS related in tipcs8150m000)

Already Open Item Present

Log a case with Support

Ledger Account not found tdsls600/tcmcs036

Setup required in Maintain Tax Codes by Country (tcmcs0136m000)

No additions present of this transaction

Log a case with Support

Transaction type not found

Setup required in Maintain Transaction Types by Transaction Origin (tfgld4126m000) and Maintain Options by Integration Element (tfgld4121m000)

Document not reserved

Log a case with Support

Batch being used

Log a case with Support

3. Set up the Year End Balancing Account, Interim Closing Account and a transaction type with the Transaction Category = Journal Voucher and an update mode of finalization in session “Maintain Company Parameters (tfgld0103m000)” on form 3. *

4. All account types are correctly set up as Balance Sheet or Profit and Loss

5. Period 1 of the new year (the year after the year you are closing) must be open for all period types, Fiscal, Reporting and Tax.

6. The debit and credit balances match. Run session tfgld6403m000, Print Unbalanced Ledger Accounts During Year End to verify they are in balance.

7. Finally Close all modules for all periods for Fiscal, Reporting and Tax EXCEPT for the GLD module for the LAST period, Fiscal, Reporting and Tax.

8. Update all the year end close objects with the latest solutions**

Rebuild sessions: tfgld3201m000, tfgld3202m000, tfgld3203m000 & tfgld3206m000

Year End sessions: tfgld6201m000, tfgld6202m000, tfgld6203m000,

Other sessions: tfacp2415m000, tfacr2415m000, tfacr1432m000, GRINYA/GRNI, 1099′s

9. Run a rebuild (optional but recommended) tfgld3203m000

10. Create a history company to which the finalized transactions are to be moved. This history company is defined in the session “Maintain Company Parameters (tfgld0103m000)”

11. Ensure that the temp db space available is at least 4 times the size of the oas_docline table.

12. Verify that there are no documents on the oas_dochead with a status of 77.

13. IMPORTANT – Ensure that the system has been backed up and the data verified immediately preceding running yearend.

YEAR END CLOSE

1. CLOSE YEAR PROVISIONAL (tfgld6201m000)

This process is the transfer of balance sheet balances to the new fiscal year before you are ready to do a final close. This session is a check option. If results are OK, then continue year-end procedure. This will enable you to produce financial statements in the new fiscal year with opening balances from the prior year. No opening balance transactions are actually created, but two history tables (tfgld203 and tfgld206) are updated with opening balances for the new year (tfgld004.year + 1)

Period status can be closed or open, batches can be in a non-finalized status. The key with the provisional close is that you must continually rerun it as you finalize entries in the prior year. Baan will update the balance sheet balances each time you rerun the provisional close and repost the prior year profit to the interim closing account defined in the Company Parameters.

Process the Close Year Provisional session, and Baan will ask how you want the balances printed (By Ledger/Currency). Select printer and Continue. After the process has completed, a report will print showing the amounts transferred as provisional opening balances. The amounts of the opening balance sheet for the next year are based on the opening balance sheet of the current year and the amounts of the current year that were posted to the history. The provisional closing still allows transactions to be processed for the current fiscal year.

It is important to mention that only one year can be provisionally closed. It is not possible to provisionally close 2 years in a row. The previous year needs to be finally closed and the yearend processing executed before the next year can be provisionally closed.

2. AUTOMATIC BALANCING OF PROFIT AND LOSS ACCOUNTS (tfgld6202m000)

This session automatically reverses balances in profit and loss accounts so that the total profit or loss amount becomes zero when the new opening balance sheet is created.

Definition of Balancing of Profit and Loss:

Subtotal The total of all profit and loss accounts is recorded in one combined entry. A P&L interim account with sublevel = 0, no dimensions and no integration options, is required. The subtotal option leaves the balances in the individual accounts. The P&L accounts will start with a zero balance in the new year.

Individual The interim profit and loss amounts are entered by individual profit and loss account. When using this option, you need to have a correction period defined.

When the auto-balancing session is executed, the user defines both the date and the period the entry should update. If a correction period is not used (setup in Maintain Periods), the last period is then period twelve, all the P & L balances will be reversed in period twelve. The ability to run your Financial Statements and Trial Balance in period twelve for your P&L accounts is no longer possible because the balances are zero. If the individual account is the option selected, the user should have defined a correction period for fiscal and reporting periods (if used), and the auto-balance entry should be made to this period.

Bottom line if no correction period is identified do not use individual accounts option.

The system will check all Profit & Loss Accounts with Sublevel 0 that have been incorporated into the history data. If it appears that the balance of a Profit & Loss Account is not 0, then a transaction is created to reverse this amount. The session will create a batch for last open period, which will zero out the Profit & Loss Accounts, either individually or in total depending on the above parameter setting and the equity account is posted with the profit/loss result.

To Process, enter following information in Automatic Balancing Of Profit and Loss Accounts session:

Transaction Type: Y/E

Transaction Entry Date: Last day of fiscal period

Statutory Document Accept Default

Complementary Document Accept Default

Fiscal Period: Last fiscal period

Reporting Period: Last reporting period

Tax Year: Last Tax Year

Tax Period: Last Tax Period

Transaction Reference: Balancing of Profit & Loss Accounts (user defined)

Batch Reference: Balancing of Profit & Loss Accounts (user defined)

Click on balance. A batch will be created in the final fiscal period, which will need to be finalized before completing the final close. Insert a new Finalization Run. Make sure you select the correct year, when creating the finalization run.

User must now final close all remaining fiscal, reporting and tax periods to continue with Close Year process.

3. CLOSE YEAR (tfgld6203m000)

This is the FINAL CLOSE of the system. This process will carry over all finalized transactions to the history company defined in the company parameters dependent on the number of years you have indicated to store history for in Maintain Group Company Parameters. If you opted to store years > 0, then the finalized transactions are not deleted and will not be carried over to the history company. The user can check the finalized transactions in the live company for one single year if the option to store years is equal to “1″. If the value is equal to 0, then once the final close is complete the user will no longer have visibility to finalized transactions. The user will have to access the history company to review any prior year activity. Prior year balances for financial statement reporting are still available.

The session:

uses tfgld201 and tfgld203 to check if debit and credit are balanced.

uses tfgld206 and tfgld205 to post new opening balances.

Click on Continue process. Baan will flash a message that it is checking to see if the year can be closed. If Baan finds no errors a screen titled “Close Year” will appear. Complete the following:

Transaction Type: OPB (Update mode for this trans type MUST BE Finalization

Statutory Document: Baan will assign

Complementary Document: Baan will assign

Transaction entry date: Start date of New Year

Document Date: Same as Transaction Date

Fiscal Period: 1

Transaction Reference: 200x Close Year – OPB (user defined as the New Year OPB)

With Batch Reference: 200x Close Year – OPB (user defined as the New Year OPB)

Baan will then create a batch in fiscal period 1 of the New Year, which must be finalized. This batch will post the opening balances to the balance sheet accounts. Make sure you select the correct year, when creating the finalization run.

At this point the year’s profit has been posted to the Interim Closing Account defined in the Company Parameters. If this is not your retained earnings account you will need to do a journal entry to move this.

ADDITIONAL YEAR END SESSIONS:

Archive Purge Finance transaction – tfgld6205m000

Please contact Baan Support for assistance archiving transactions.

Archive Purge Vat Transactions – tfgld6207m000

Please contact Baan Support for assistance archiving VAT transactions

*if your Maintain Company Parameters (tfgld0103m000)” session does not require a transaction type on form 3, you have an old form and will need to update the form and the object.

** To find the latest solutions for these sessions, go to the Baan Support Knowledge Base. Search for latest solution for a session (found in the components box on the lower right) and then enter the session and your version. The list returned will have the latest solution at the top of the list. Review the instructions for entering the session found below the input boxes.

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