Overview of Annual Close Report (R098201)

As part of your year-end procedures, you must close your books for the fiscal year. To close your books, you close the following systems on the Company Setup form:

EnterpriseOne Accounts Payable and EnterpriseOne Accounts Receivable for year-end reconciliations to the GL.
EnterpriseOne General Accounting for retained earnings calculations.

After you close the fiscal year for these systems, you should run the Annual Close program (R098201). This sequence is suggested to prevent users from posting to the fiscal year while you are running the program or after you have completed running the program. Changing this sequence can cause integrity issues such as out-of-balance issues.

Scope

This document provides an overview of the Annual Close Report (R098201), including the overview of functionality, setup requirements, information on reviewing the annual close report and common error messages.

Details

Program Functionality

The Annual Close program (R098201) does the following:

Sums all net income/loss for all Income Statement (Profit/Loss object accounts from GLG6 to GLG12 AAIs) and populates the retained earnings (account specific to GLG4 AAIs).
Calculates retained earnings for all ledger types for which the Close to Retained Earnings Account check box is selected in the Ledger Type Rules Setup program (P0025).
Creates account balance records in the F0902 table for the new fiscal year for the AA ledger and other budget ledger types.
Updates the Balance Forward (APYC) and Prior Year End Net Posting (APYN) fields in the F0902 table for the new fiscal year for all Balance Sheet (object accounts from GLG1 - GLG5 AAIs) and Income Statement (object accounts from GLG6 to GLG12 AAIs).
Prints the Annual Close report (R098201) that lists the company that was closed, and the retained earnings account along with the net amount.

NOTE: Regardless of the type of account, the system always updates the Balance Forward field in the F0902 table. 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.

Closing Fiscal Year for Budget Ledger Types

When you close a fiscal year, you can roll the original budget amounts in the F0902 table to the next year for budget ledger types, such as:

BA (budget amounts)
JA and JU (job cost budget amounts and units)
PA and PU (job cost commitment amounts and units)

You control how to "Roll" the balance in the budget to the next fiscal year using:

"Roll Original Budget to Next Year" option in Ledger Type Rules Setup (P0025).
Original Budget Processing option under the Orig Budget Tab for Annual Close program (R098201).

If you check the option "Roll Original Budget to Next Year" in Ledger Type Rules Setup (P0025), and run the Annual Close program with Original Budget processing option as '1', the program will generate new Account Balance records with the budget amount that was established for the previous year for that ledger type. The program simply copies amounts in the Original/Beginning Budget (BORG) field on the Account Balance record for the fiscal year being closed to the Original/Beginning Budget (BORG) field on the Account Balance record for the next fiscal year. For more information on setting up Ledger Types, refer to Setting up Ledger Type.

If you leave the option unchecked, a balance record will be generated, but amounts will not be copied.

Depending on how often you redefine your budgets, rolling the budget amounts forward could reduce the amount of time you spend establishing new budgets.

Specific Considerations

Retained Earnings

AAI item GLG4 defines the account that the system uses for the retained earnings of each company. The account must be a posting account that allows machine-generated entries. During the annual close, the system posts retained earnings to the account assigned to AAI item GLG4.

You can close more than one company to a single retained earnings account. This procedure is necessary if corporate divisions are set up as companies. You would close these divisions to a single retained earnings account to consolidate reporting for the legal corporate entity. If you are closing multiple companies to the same retained earnings account, ensure the following:

The companies must have the same fiscal date pattern.
You must use a single version that selects all of the companies that are being closed together.
You must select a fiscal year.

By setting a processing option, you can print a detailed list of the accounts and balance amounts that are used in the retained earnings calculation. This is useful if you need to research an incorrect retained earnings amount. The detailed list for retained earnings can be lengthy. Do not print it unless you need to research the retained earnings calculation.

Intercompany Settlements

After you run the Annual Close program, you might need to create journal entries for intercompany settlements to keep the companies in balance. The Annual Close program posts retained earnings to a retained earnings account for a single company but does not create automatic entries for intercompany settlements.

Balance Sheet Entries

If you close a fiscal year and later find out that you must create entries for balance sheet accounts for that year, you do not have to reopen the year (that is, change the current period back to the prior year ending period) and rerun the Annual Close program. Instead, create the entries for document type ## (prior year transactions) using the Journal Entry program (P0911). The system generates a warning message but accepts the transactions. Post the transactions as usual. The system updates the beginning balance forward amounts in the F0902 table for the balance sheet accounts affected. Because the entries are balance sheet entries, they do not impact the retained earnings account so there is no need to reopen the fiscal period and year and run the Annual Close program.

Setup

Prerequisites

Setup Requirements

Setup	Description
Chart of Accounts	Following accounts must be set up: Profit and Loss account Beginning Balance sheet Ending Balance sheet
Automatic Accounting Instructions (AAIs)	Following AAIs items must be set up: GLG4: Retained Earnings account GLG6: Beginning Revenue (profit and loss) account GLG12: Ending Revenue account AAI item GLG4 for retained earnings is the only GLG item that is company specific, whereas GLG6 and GLG12 are always specific to base company (00000). For more information on setting up AAIs, refer to Overview of Automatic Accounting Instructions (AAI) in General Accounting (P0012).
Ledger Types	Ledger type AA and all Budget ledger types must be set up in UDC table 09/LT and on the Ledger Type Rules Setup form (P0025). For the AA ledger, select following check boxes on the Ledger Type Rules Setup form: Close to Retained Earnings Account Ledger is Required to Balance For Budget ledger types, select the Roll Original Budget to Next Year check box. For more information on setting up Ledger Types, refer to Overview of Ledger Types Setup (P0025).

NOTE: If you close the year, change any of the above mentioned AAI items, and then rerun the close, you might get different results.

Common Tasks

The specific process for closing a fiscal year is unique for each company. Each organization should develop its own year-end detailed closing tasks and include them in internal documentation. Before closing the fiscal year, you may want to perform following tasks appropriate for your company:

Verify that all transactions have been posted.
Run integrity reports and correct errors. Integrity reports supplement your internal balancing procedures and locate any data inconsistencies. For more information on how to run different integrity reprots, refer to Overview of General Accounting Integrity Reports (R007021/R007031/R007011/R097001/R09706/R007032/R097011/R09705/R099102/R097041/R097031/R097021/R09707) Overview of General Accounting Integrity Reports.
Enter and post audit adjustments. Many companies reserve an accounting period for audit adjustments.

Assume that you want to enter and post audit adjustments to record the final adjusting entries for fiscal year 2008. Ensure that the fiscal year on the Company Setup form is 2008. If the fiscal year is 2009, reopen fiscal year 2008 by entering the beginning start date (for example, January 1, 2008) and change the current period to the last period of fiscal year 2008 for General Accounting only.
You can make audit adjustments without changing the current period back to the prior year ending period. To do this, create an entry using document type ## (prior year transactions). The system generates a warning message but accepts the transaction. You can use this document type only in the Journal Entry program (P0911).

Close the fiscal period and year for Accounts Payable, Accounts Receivable, and General Ledger.
Run year-end financial reports, trial balances, and any other reports that are required.
Close the fiscal period and year for financial reporting.
Back up your entire environment for fiscal auditing purposes. You might be asked to provide reproductions of your reports as well as your electronic data files during a tax audit of your information system.
While running the Annual Close, verify that no users are accessing the F0902 balance file. If other programs that update the F0902 file are running, records could be skipped during the calculation of Retained Earnings.

Now you are ready to run the Annual Close program.

Processing Options

Profit/Loss Tab

Profit/Loss

Enter '1' to create profit/loss account records for next year if the net posting for year being closed has a zero balance.
Default of blank will not create profit/loss records

Orig Budget Tab

Original Budget

Enter '1' to override the original budget regardless of whether record for next year already exists.
Default of blank will not override the original budget.

NOTE: With job cost accounts, you enter an original budget and then make changes using change orders. For example, assume that you have a job in 2008 that you budgeted for and expect to complete in 2010. You added budgetary information to the original budget in 2008. To override the original budget with new information, enter 1 for this processing option.

Print Tab

Enter '1' to print supporting detail information for the retained earnings calculation.
Default of blank will not print supporting detail information.

NOTE: The detailed list for retained earnings can be lengthy and should not be printed unless you need to research the retained earnings calculation

Data Selection

It is mandatory that the Data Selection includes Century with a particular Fiscal Year. Further, data selection by Company and Ledger Type are optional.

NOTE: You cannot close multiple years at the same time. To close several fiscal years, create separate versions with the fiscal years specified in each version. Each Annual Close version should not be active in the job queue at the same time.

Data Sequence

Do not change the Data Sequence setup. The default sequence is by Fiscal Year, Company and Ledger Type. Changing the Data Sequence could damage the F0902 file and/or produce unpredictable results.

Reviewing the Report

The Annual Close report (R098201) sums all Income Statement (Profit\Loss) accounts (object accounts from GLG6 to GLG12 AAIs) and populates the Balance Forward field (APYC) field and Prior Year Net Postings (APYN) values in the retained earnings account i.e. 91009.4980 for ledger types - AA and CA. It also creates account balance records in the F0902 table for the fiscal year 12 for ledger types AA and CA for all income statement and balance sheet accounts and updates the Balance Forward (APYC) and Prior Year End Net Posting (APYN) fields for the same.

Common Error Messages

If any errors prevent a company from closing, the errors are listed on a report. Examples of errors and resolutions include:

Error Message	Resolution
Company not closed. Retained earnings account or AAI (GLG4) not set up.	Set up a valid retained earnings account corresponding to AAI item GLG4 with Posting Edit Code of 'M'.
Company not closed. Beginning P/L AAI (GLG6) not set up.	Set up AAI item GLG6 for company 00000 to define your beginning revenue (profit and loss) account.

NOTE: If AAI item GLG12 is not set up, an error message does not appear on the annual close report. The system uses account 999999.99999999 as the default.

Frequently Asked Questions

For frequently asked questions, please refer to Frequently Asked Questions on the Annual Close Report (R098201).