End of Year Procedures - 2.6 Hosted

Best Practice Do not begin any End of Year process before you have read these instructions in full.

The Micronet General Ledger, Creditors Ledger and Distribution applications each have their own End of Year procedure that needs to be run. The End of Year processes for the Creditors Ledger and Distribution are very similar and they are run immediately after the last End of Month for the financial year. General Ledger is somewhat different and for the purposes of this document will be treated separately.

Warning It is essential that each of these processes is monitored. Do not start a process and then leave it unsupervised. If an End of Period or End of Year process has not completed, under no circumstances should it be restarted. Contact Service Desk immediately if you suspect that there has been, or is a problem.

Micronet General Ledger Version 2.6

Micronet allows users to have up to 24 accounting periods open at any time. If the Micronet General Ledger (MGL) is installed and interfaced, it is mandatory that before the end of period 24 (traditionally June in Australia) is rolled in the Distribution and Creditors packages, that the End of Year is run in the General Ledger. If the End of Year is not run in General Ledger, then an error will be received when trying to run the End of Period in Distribution and Creditors.

The End of Year in the General Ledger can be run at any time after the start of period 13, although it would normally be run immediately after the End of Period has been done for period 23. When the End of Year is run, periods 1 to 12 are purged and periods 13 onwards are re-numbered to periods 1 to 12. This then gives you the previous 12 periods still available for postings and sets the system to allow another 12 future periods to be run.

The normal process is as follows:

1. Lock the system date in MGL by selecting MAINTENANCE | SET LOCAL DATE.

Micronet records the End of Year processing date in the company files. As End of Year may be run in each module at different times, it is important that the correct date is recorded, e.g. 30/6/2020.

2. Go to MAINTENANCE | EDIT COMPANY | EDIT | APPLICATIONS | MGL | SPECIAL ACCOUNTS and ensure that all relevant accounts are entered, especially Unappropriated Profits Previous Years and Current Year Profit and Loss.

If special accounts are missing, the following message will appear when you try to run your GL End of Year.

3. Ensure that all batches in all applications have been printed, verified for accuracy and posted.
4. Print, verify and post the external file.
5. Enter, print, verify and post all End of Period journals as required.
6. Enter, print, verify and post all End of Year journals as required.
7. Verify all balances for all accounts.
8. Print all normal End of Period reports (Profit & Loss, Balance Sheet and Bank Reconciliation) with the addition of the General Ledger Transaction Listing if it is not normally run.

Technical Tip From this point on, ALL users should be logged out of ALL applications. Terminals must not be left at the Micronet main menu; they must be logged out using START | LOGOFF at the Windows Start Menu. Users are allowed back in to Micronet when you are confident that the EOM and EOY processes have been completed successfully.

9. If you are in period 13 to 23, run the End of Month as normal. Re-print reports to ensure that no problems have occurred.
10. Log out of the MGL module and then log back into MGL.
11. Run the End of Year. The following screen is displayed.

12. Select the EOY button. Micronet creates a copy of your End of Year data before the process for General Ledger End of Year occurs.

The End of Year process carries out a number of functions as follows:

1. All Year to Date values are moved to Last Year and the Year to Date values are then set to zero.
2. The balance of the current year Profit and Loss account is transferred to the Retained Earnings Previous Years.
3. All Profit and Loss accounts are initialised to zero.
4. The period number in all applications is reduced by 12 from that application’s current period.

13. Quit out of MGL and log back in again. The period number appearing in the bottom right corner of the screen should have reset.
14. Log in to each Micronet ledger and ensure that the period numbers have reset correctly.
15. Reprint the Balance Sheet, Profit and Loss and Bank Reconciliation to ensure that no unexpected problems have occurred.
16. The Bank Reconciliation will create a new opening balance. This new transaction creates a variance between the Op Bal and Bank Statement Bal in the Bank Reconciliation program. The new transaction should be the value of the variance between these two amounts.
17. To clear out the transaction and bring the two amounts back into balance, set only the new transaction to Presented in the Bank Reconciliation program and then run an End of Period.
18. Reset the system date in MGL by selecting MAINTENANCE | SET LOCAL DATE then selecting Reset.

When the date is locked, it must be reset prior to posting any transactions in MGL. Micronet sets the date back to the system date.

As long as there have been no problems, you can now allow the users back in to continue normal trading.

Micronet Distribution Version 2.6

In Creditors Ledger and Distribution, the End of Year procedure is run as an additional task, immediately after the End of Month procedure for the last month of the financial year.

You should read this document with your End of Month procedures.

Essentially, the End of Year process for this application runs through all of the data files and zeros the Year to Date values. For that reason, the process must be run immediately after you finish your normal End of Month procedure.

1. Lock the system date in MDS by selecting MAINTENANCE | CHANGE LOCAL DATE then enter the end of financial year date.
2. Go to the END OF PERIOD menu at the main Micronet Distribution screen. Select END OF MONTH | END OFMONTH. (If you are operating in period 24 and have not done an End of Year in GL as yet, the following error will appear:)

3. If that message appears, you will need to go to your General Ledger and run an End of Year before you can complete your Distribution End of Month.
4. If the message does not appear, an End of Month will process as normal.
5. When End of Month is complete, it is recommended that you run the System Summary, Debtors Aged Trial Balance and Monthly Sales Register to check that the current values have been reset to 0. Investigate and correct any problems before continuing.
6. Now log out of Distribution, log back in and check that the correct month/period appears on the main screen.

7. In the Distribution system select END OF PERIOD | END OF YEAR | END OF YEAR.
8. Once the End of Year process is complete, quit out of the Distribution system and log back in again. Run the System Summary to the screen and ensure all Year to Date values are now zero.
9. If all Year to Date values are zero, reset the system date in MDS by selecting MAINTENANCE | CHANGE LOCAL DATE then selecting Reset. You may now let users into the system to continue trading for the new year.

Should the Year to Date values not be zero, or you are concerned about any figures displayed in your System Summary, please contact the Service Desk before continuing to trade.

Micronet Creditors Ledger Version 2.6

As with Distribution, Creditors End of Year runs through all of the data files and zeros the Year to Date values. Again it is essential that the process is run immediately after you finish your normal End of Month procedure.

1. Make sure that all users are logged out of the Micronet Creditors Ledger (MCL).
2. Lock the system date in MCL by selecting MAINTENANCE | SET LOCAL DATE then enter the end of financial year date.
3. Run your Creditors End of Month procedure as normal.
4. Now log out of MCL, log back in and check that the correct month/period appears on the main screen.
5. At the main menu of MCL, select END OF PERIOD | END OF YEAR.
6. Once the End of Year process is complete, quit out of the Creditors Ledger and log back in again.
7. Select a regular Creditor account and run an account inquiry.

Select REPORTS | CREDITOR INQUIRY, select a creditor then select INQUIRY | ACCOUNT INQUIRY.

8. Run a Creditor Summary on the same creditor and ensure that all Year to Date values are zero.

Select REPORTS | CREDITOR INQUIRY, select a creditor then select INQUIRY | CREDITOR SUMMARY.

9. If all Year to Date values are zero, reset the system date in MCL by selecting MAINTENANCE | SET LOCAL DATE then selecting Reset.

You may now let users into the system to continue trading for the new financial year.

Should the Year to Date values not be zero, please contact the Service Desk before continuing to trade.