YEAREND

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YEAREND.PNG
Name End Of Year Sequence
Shortcut YEAREND
Area NL

See the NOVUS Walkthrough Guide for general information about the system.


YEAREND Program Overview

Each year-end is processed using the year-end closing exchange rate for balance sheet items and the journal (booked) rate for profit & loss items.

This causes an imbalance in the nominal ledger (NL) which is corrected by writing an entry to the unrealised exchange gain/loss account. This NL account is set up in the SYSP program and is shown in the text at the top of the screen.

The retained income will be posted to the revenue reserves: account. Some clients use a single account, others use a new account for each year. This must be set up in the SYSP program.

NOVUS calculates the carried forward balances and converts the retained income account to the system base currency (usually GBP). Due to roundings during conversion, each currency may have small differences of 0.01 or 0.02. These must be manually adjusted. When these adjustments have been made a provisional opening trial balance can be viewed, printed or output to Excel.

If the results are as expected, committing the screen will post these balance to the NL in period 1 of the new year. If the program exits at this stage, the only work that has been done is the capture of the year-end rates.

Failure to run either of these routines does not prevent the everyday use of NOVUS. However, failure to run IBA (insurance brokerage account) reports at the end of a period can cause issues in the future as the IBA reports on outstanding amounts must be run on the day that the figures are required.

In order to confirm that the previous yearend has been performed the YEAREND program looks for opening balance journals for the year being closed. In this instance, there will not be as the previous year was not closed as it had no transactional data. Now YEAREND checks to see if there were any P journals in the preceding year. These are created when the period end is performed. In this case, there will not be any as there was no transactional data in the proceeding year.

Therefore, on entering the year to be closed in the year field the YEAREND program should allow yearend to be continued.


End Of Year Sequence

Enter the year to close (the previous year must be closed and PERIODEND must have been run for all periods in the year).

Select option A to capture the year end rates.


If option A is selected in the YEAREND program the EOYCUR program will be invoked when the user clicks the proceed button.

YEAREND.PNG


NOVUS will capture the rates currently in the currency table. If these are not the year-end rates then rates can be updated on this screen before saving. It is possible to 'recapture' or amend these rates at a later date if required.


YEAREND preserve ROX.PNG


'Option B' (only possible after option A)


YEAREND Option B.PNG


Helpful Hint:

"Due to roundings caused by currency conversion some divisions/currencies may not sum to zero. These rounding errors must be corrected manually to get the div/cur to sum to zero. To do so press [F7] to enter the enquiry. Then enter the account, div and cur from the line and press [F8]. Then amend the amount to achieve zero balance, and press F10 to commit. It may be necessary to repeat this process for several div/currency combinations."

YEAREND closings trial balance.PNG


Select from view, print or Excel to see the trial balance. Only [COMMIT] once figures are accepted.

Check that year-end has been processed successfully through the ENLACC program. Once YEAREND has been run, check ENLBATCH to confirm that year-end has run. Check the currency column for the currency that you amended. Check the column called ROX w.r.t Base which should contain the rate of exchange that had previously been entered.

You are advised to make a backup of the database prior to running this program. There are 4 steps to the end of year procedures. The steps should be completed in sequence.

  1. Enter the required year boundary. The program displays the prevailing exchange rates. Edit as appropriate and press [COMMIT].
  2. Report on this year's unrealised gains/losses. This option fires off the required report with the ‘request acknowledged’ message.
  3. Compute previous years' gains/losses (REVALUE).
  4. Enter the year boundary details. The program computes the gains and losses. [COMMIT] to preserve these records.


Caution: This program should only be used at the time for which it is intended – just prior to end of year. There is no need to run this program If you do not wish to compute exchange gains and losses automatically.

Once the year boundary has been entered (see below) the program checks that:-

The earliest open period has been incremented Calendar Maintenance program i.e. by setting the first period of next year to be the earliest open (current) period.

All IBA end of period processes has been run for the expiring year.

The end of year process for the retiring year has not already been run.

This program has not been run already for the retiring year.

The program computes the exchange gains and losses for convertible currency records in the nominal ledger. Records are written to the NL exchange gains/losses account with balancing records written to debtors and creditors, all expressed in convertible currencies.


Field name Description
Year End:
Enter the retiring year: The system displays the emerging year, runs the computations and displays the results in the main body of the screen. The computations are stored in a temporary table at this stage.
Batch No:
Displayed automatically.
Account: Displayed automatically.
Div:
Division. Displayed automatically.
Cur:
Currency. Displayed automatically.
Amount:
Displayed automatically.
Base:
Displayed automatically.
ROX:
Rate of exchange of currency to base currency as above. Displayed automatically.


Press [COMMIT] to write these records to the nominal ledger whereafter they can be reported in the trial balance program.

Consolidate P&L records provisionally into revenue reserve A/C options:-

  • Print EOY Trial Balance.
  • Close Year.


Field name Description
Year End:
Enter the year boundary. The system checks that the end of year has not already been run and that all end of period processes have been completed for the retiring year. If the REVAL option has not been run an advice notice appears indicating that you should do this before running the end of year routine. The program then runs the end of year calculations and displays these in the main body of the screen. These entries will become the new year journals. Use the normal navigation keystrokes to display the results. Press [COMMIT] to continue which will produce an end of year trial balance.
P&L Account:
Displayed automatically.
Trial Balance OK:
Enter ‘Y’ if you are satisfied with the trial balance, otherwise ‘N’ and leave the program. You may repeat the process repeatedly to this point until such time as the TB is acceptable.
Press {COMMIT]…
Press [COMMIT] to close the retiring year. After this point the process is irreversible. The records displayed in the main body of the screen are written as new year journals to the NL and the IBA rates of exchange for unconverted transactions are set to the rates held on the NL counterparts (adjusted by REVAL If this option was taken).


Version History

v 5.0.0 Updated to latest version

v4.2.0 – Updated to latest version

v7T - First version of this form to use the new style. No other updates except the restyle.

v11K - The current verison of this form to use.
v9K - First version of this form to use the new style. No other updates except the restyle.