Fiscal Year-end in Adagio Ledger 9.0

Previous versions of Adagio Ledger required a series of steps that all had to be performed at or near the fiscal year end to close the old year and open the new one.   Ledger 9.0 has “unbundled” these steps so they can be performed at different times. This allows posting to both the old and new fiscal years for as long as required.   Below are each of the groups of steps and when they should be performed.

Prepare Budgets in Advance (Optional)

At any time during the fiscal year you can open and prepare the budgets for the next fiscal year.  Select Maintenance / Create Next Fiscal Budgets.

You can then select Edit / Budgets.  Choose an account and the editing screen offers a choice of fiscal years to edit. 

Note:  this also opens the Forecasts for the new year which operate identically to Budgets.

Start New Fiscal Year

Before the first entries for the new year can be entered, the new year must be opened. 

Select Maintenance / Create next Fiscal year.    The only option that appears is a checkbox asking if you want to clear the budget data.  (This does not appear if you did the optional step above.)

Your toolbar at the top will now contain two icons, Batch is for batches in the current fiscal year (the old year) and Next Year is for the fiscal year you just opened.

Both years remain active and accessible.  Batches may be created, edited and posted in both years.  Batches may be copied from one year to the other.   Batches that are retrieved from sub-ledgers will automatically be assigned to the correct year based on the transaction dates.  If a sub-ledger batch contains transactions dated in both fiscal years, ledger will assign the transactions to separate batches in each year based on their dates.

Note:  All financial reports can be run for both years.  Transactions posted in the current year update the opening balances for the new year.

Finish and close the old year

When all transactions for the old fiscal year have been retrieved, entered and posted, except for accountant’s adjustments, you can take the final steps to close the year.

(Recommended) Print a closing trial balance.  (Reports / Trial Balance; select the correct year and the last fiscal period.)

Check that all income statement accounts are correctly assigned type I.

Back up your data.

Select Maintenance / Close Income/Expense Acct.   Select the source code for the year-end entries and enter the date for the last day of the fiscal year.    (Usually all departments are closed at the same time.  If you close them separately, you cannot proceed to the next step until they have all been closed.)

Print and clear the posting journal.

Select Reports / Batch Status.  Select Current Year and select all types of batches. When asked if you wish to clear, select Yes.

Select Maintenance / Close Current Fiscal year.

After completing this step, the New Year becomes the current year and the New Year icon disappears.

Post Accountant’s Adjustments

When these are received, enter them in a batch or batches with a transaction date of the last day of the previous fiscal year and the last fiscal period.

Select Post / To Prior year .  (If this option is not selectable, enable it in the Company Profile.)

Select the correct year and batch or batches.  Enter or select a source code.

If you check the box Post to YE adjustment period, the adjustments will only be reflected in the current year’s opening balances and will not change the period-by-period reports for the previous year. 

Looking for a checklist.  Softrak has one here.