| Purpose |
| Questions and Answers |
| General Questions |
| Question 1: A Company has already closed its fiscal year. Can a particular year be closed again? |
| Question 2: How is the F0902 affected if R098201 report is submitted multiple times? |
| Question 3: Can the Annual Close be run in proof mode? |
| Question 4: Can the Annual Close be run if the company is not in balance? |
| Question 5: Is the Annual Close dependent on the company’s current period and fiscal year in the Company Names and Numbers (P0010)? |
| Question 6: What are the ramifications of ending the Annual Close prior to a successful completion? |
| Question 7: Is it possible to run Annual Close for past years only for certain accounts without affecting the Retained Earnings? |
| Question 8: What is the difference in logic while processing balance sheet accounts and income statement accounts during annual close run? |
| Question 9: What is the standard process to perform annual close for Accounts Payable and Accounts Receivable before closing General Ledger? |
| Question 10: How do I prevent calculation of retained earnings for a specific ledger type when running Annual Close? |
| Question 11: Why is there a difference in Retained Earning amounts when re-running the annual close? |
| Question 12: Is it necessary to run Annual Close after office hours when users are not log into the system? |
| Question 13: Can R098201 close program clear budget figures for balance sheet accounts? It does clear the income accounts. |
| Data Selection and Processing Options |
| Question 1: What data selection is recommended while running the annual close ? |
| Question 2: How do you determine the fiscal year for data selection, if you are not running on a calendar year? |
| Question 3: How does the processing options (Zero Balance Accounts/ Profit & Loss) for Annual Close report relate to the Job Cost module? |
| 52 Period Accounting |
| Question 1: Are there any specific recommendations for performing the Annual Close for 52 Period Accounting? |
| Common Issues |
| Question 1: After inactivating accounts and business units (no longer required), will retained earnings still roll up correctly after running the annual close? |
| Question 2: Why do income statement transactions in another ledger type, such as GP, not post to the retained earnings account? |
| Question 3: During auditing, client has found certain entries that had been posted to the GLG4 Retained Earnings account. How to avoid this in future and how can these be corrected? |
| Question 4: Why does the ending balance from previous year not match the beginning balance for current year after running the Annual Close? |
| Question 5: The Annual Close was run by mistake for a future fiscal year. Is it possible to undo the updates the report created in the F0902? |
| Question 6: Why does Annual close not update CA ledger for the following fiscal ledger, if the CA balance shows zero for the previous fiscal year? |
| Performance |
| Question 1: How can I improve the performance of the Annual Close? |
| Security |
| Question 1: What security should be applied after closing a financial year to prevent users from accessing the closed year data? |
| Print Output |
| Question 1: Is it possible to get a summary of each account on the Annual Close report rather than multiple pages of detail or just one line item? |
This document contains some frequently asked questions and answers on the Annual Close Report (R098201).
Answer 1: You can close the same fiscal year as often as needed as multiple closings are often necessary to handle audit adjustments or unexpected final adjustments. For example, you can:
If you close the fiscal year multiple times, the Annual Close program calculates and posts the correct balances without doubling or otherwise inflating balances. For example, if you run the program twice, balances are not doubled. If you run the program three times, balances are not tripled.
Answer 2: The Annual Close can be rerun as often as necessary for the same fiscal year and company combination. Only Account Balance records for the next fiscal year will be updated. If the records do not exist, they are created. If changes are made to the prior year, the accounts affected will have their balance-forward amounts refreshed into the new year and the retained earnings will be updated (if the accounts affected fall within the profit and loss account range).
Answer 3: The Annual Close does not have a proof or final mode. The Income Statement report (R10211B) gives you the retained earnings when run for period 12 for the fiscal year you want to close.
Answer 4: The Annual Close will not check whether the company is in balance. It will just calculate retained earnings and bring the closing balance of the Balance Sheet accounts to the balance forward of next financial year.
Answer 5: The current period and fiscal year have no bearing on running the Annual Close. However, it is recommended to run the Annual Close program after closing the fiscal year in Company Names and Numbers.
Answer 6: Although it is not recommended to end the annual close job prior to completion, it will not cause major damage to your existing data. The company you ran it for may be out of balance if the retained earnings calculation was only partially completed and all of the beginning balances and prior year net postings were not moved forward correctly. But re-running the annual close report again would recalculate all of the partial calculations and correct any issues that may have been caused during the first time.
In case the records in the Account Balance table (F0902) become damaged or if balances appear to be incorrect, run the Repost Account Ledger program (R099102) to update the period balances and then run the Annual Close report (R098201). For more information on R099102, refer to Overview Repost Account Ledger Integrity Report (R099102).
Answer 7: It is possible to run Annual Close only for certain accounts (data selection on Ledger Type, Fiscal Year and Account ID). The annual close will process only the records being selected. If the user wants to reclass an entry (debit/credit) between balance sheet accounts, Annual Close will not create any adjustments made to the Retained Earnings account. If the entry is between Balance Sheet and Profit and Loss accounts, then there will be an adjustment to Retained Earnings account. For example, if a user runs R098201 for a cash account, the report will not show any change to retained earnings. However, the cash account will be changed when reviewing the opening balance.
Answer 8: The Annual Close updates the Balance Forward (APYC) and Prior Year End Net Posting (APYN) fields in the F0902 table for the new fiscal year for all accounts irrespective of whether the accounts are Balance Sheet or Income Statement accounts. However, the system does not show the balance forward amounts for profit-and-loss accounts in online inquiries or on reports that use AAI items GLG6 and GLG12. The system updates the Balance Forward field in the F0902 table to allow inception-to-date reporting, which is commonly used for job costing. When calculating retained earnings, the annual close will only consider amounts corresponding to Income Statement accounts defined by GLG06 and GLG12.
Answer 9: There is not any mandatory annual close process for AP and AR modules in EnterpriseOne system. However, there are certain procedures to follow before running the annual close as outlined as follows:
Answer 10: The Close to Retained Earnings Account option in the Ledger Types Rules (P0025) application specifies whether the Annual Close program (R098201) closes accounts in any ledger type to a retained earnings account or not. This flag must be selected for the AA and AZ ledgers. For other ledger types, disable the "Close to Retained Earnings Account " flag in order to prevent calculation of retained earnings.
Answer 11: The difference can be due to following reasons:
Answer 12: It is not necessary to run annual close after office hours. Users can still log into the system as long as they are not performing any posting to the fiscal year you are trying to close.
Answer 13: No, the R098201 will not clear budget balance sheet accounts. You would need to clear the APYC for the balance sheet accounts via some type of data base utility.
Answer 1: It is mandatory that the Data Selection includes Century with a particular Fiscal Year. Further, data selection by Company and Ledger Type are optional.
Answer 2: The fiscal year is defined as the last day of the first period. For instance, if your fiscal date pattern is June 2011 to May 2012, last day of the first period in this case is 30th June 2011 and hence the fiscal year will be 11.
Answer 3: Annual Close (R098201) Processing options related to Job Cost are as follows:
Profit/Loss processing option
It is not recommended to view Job Cost in any G/L program because the balance forwards for P&L accounts are not displayed in System 09. Please view these accounts in the Job Cost System.
Original Budget processing option
Answer 1: After you run the Annual Close program (R098201) at the end of a fiscal year, run the Annual Close for 52 Period program (R09820B). The Annual Close for 52 Period program updates the Account Balance - 52 Period Accounting table (F0902B) table with balances from the F0902 table.
Answer 1: The inactive accounts are treated just like active accounts by the Annual Close program. The Balance Forward (APYC), Prior Year End Net Posting (APYN) fields in F0902 and Retained Earnings are updated correctly in either case.
Answer 2: Please ensure to check the "Close to Retained Earnings Account" for Ledger Type GP in Ledger Types Rules Setup (P0025) and the retained earnings will get calculated correctly for GP ledger.
Answer 3: The GLG4 Retained Earnings account should never have any corresponding F0911 transactions. In future, if adjusting entries or beginning balances for Retained Earnings is desired, set the system up in the following way:
If existing transactions are in the Retained Earnings Account, correct in the following way:
Non-Currency environment:
Now all records will be fine. From this point on, Account 1 will have true Retained Earnings figures. Account 2 will be an adjustment account used in Financial Reporting as a rollup to the Retained Earnings account.
Multi-Currency environment:
Answer 4: When running the Annual Close for the year, the annual close calculates the retained earnings and plugs the calculated value in the beginning balance (APYC) for the next year, that is why the values are different from the last day of the year to the first day of the following year. The amounts would match only if the retained earnings would be zero, otherwise the difference between beginning and ending balance is equal to amount calculated to retained earnings after running the annual close.
Answer 5: Please note that the Annual close can be run as many times as required for any fiscal year. Hence running the Annual Close for an incorrect future year should not cause any issues as the balances will be recalculated, when you run the Annual Close next time. Anyhow, if you may like to reset the effect, you may consider the following:
Answer 6: The mentioned issue has been addressed under the following Bugs:
Answer 1: To get the annual close to run faster, its recommended to data select on the AA ledger, Fiscal Year and Company (or group of companies on the same fiscal date pattern). The processing option to show detail on the report will also impact performance.
Answer 1: After closing a financial year and moving on to the current period/year in Company Names and Numbers (P0010), the users can no longer post to the prior year, with the exception of ## journal entry types which were specifically created for posting to prior years. Furthermore, the standard method for controlling post to prior periods is through the PBCO option in General Accounting constants (P0000). Apart from this, there are no standard methods to secure users from accessing prior year data.
Answer 1: When the Print processing option under the Print Tab for the Annual Close is set to ‘1’, to print the supporting detail on the Annual Close report, each F0902 balance for each account will print on the report. This can result in a very large and detailed report. This is especially true when subledgers are being used as you will see all the subledger and subledger type information on the report. The only exception to this is if the posting edit code is set to “S” to post subledger information in summary format. When this processing option is blank, then the report prints only one line showing the retained earning calculation.