Accounting>File>General Ledger>G/L Functions
Journal Close
Preparing to close the Journal
Closing the journal using a hand system often requires many hours or even days to complete. Because the RFMS system is so thoroughly integrated, this process can be accomplished in a matter of minutes. A complete explanation of what happens behind the scenes is given in the Information for Non-General Ledger Users. Since most people who keep the books for a company are not certified accountants, we will offer here just a simple step-by-step procedure on how to close the books.
While the user is able to continue doing day-to-day operations while processing the General Ledger, no postings to the period being closed can occur during this process. Only one workstation at a time will be able to Close the Journal, Close the General Ledger, or do a General Ledger End of Year. If the error message "Source File Does Not Exist" appears during the Journal Close, it means that another workstation is accessing the files that the journal needs for closing. Exit the workstation out and retry.
Pre-journal reports reflect balances prior to closing the journal for the specified period. Pre-G/L reports will reflect balances after the journal has been closed but before the General Ledger has been closed for the specified period.
Preliminary Journal Close
This selection will prepare the Journal for closing for a given month. It compiles all of the current figures in the journal. The user should check these figures for accuracy and note the adjustments that need to be made. A screen will be displayed with running totals of debits and credits for all files being posted.
Do not save the Journal Close until confirmation of all daily entries for the month have been made.
Doing so closes out the normal working files for the month and no further entries will go to the journal from that source. Any adjustments must then be made through the batch files. The user will be directed to a soft journal close if all receipts for the month have not been posted to a deposit.
Printing
Print the Journal
This routine will print a detailed report of records generated by the journal close of a specific month. See G/L Reports - Journal.
Print the Trial Balance
This routine prints a standard trial balance based upon postings done during the preliminary close routine. See G/L Reports - Trial Balance.
Print the Balance Sheet
This routine prints a balance sheet reflecting the financial position that would exist if the user saved the journal close. See G/L Reports - Balance Sheet.
Print the Profit and Loss Statement
This routine prints a statement of income for the month being closed as well as year to date information. See G/L Reports - Profit and Loss Statement.
Saving the Journal Close
Once all adjusting entries have been made, the user can go back to Journal Close and rerun steps to get "clean" reports. This can be done as many times as necessary until the user is satisfied that the records are accurate. The user will still be permitted to make adjusting entries through the normal daily routine menus as well until the journal close has been saved.
If the user exits the Journal Close routine at any time before saving the close, they must re-run the Preliminary Journal Close before they can save the Journal Close.
Abort Journal Close
This option allows the user to terminate the Journal Close before it is completed.
Sales Tax Liability
We recommend having your sales tax liability number for the month being closed on hand when beginning the preliminary journal close. Entering that number when prompted by the system will cause an automatic booking to the journal for the month being closed. The transactions will be booked as a credit to the "Sales Tax Payable" account as defined in Standard Account Codes and a debit to the "Sales Tax Expense" account as defined in Standard Account Codes. Typically you are doing your journal close some 10 to 15 days after the end of the close month. By booking your sales tax liability this way, you may, when remitting your sales tax payments, date such remittance with the current month"s date and post such payments to your "Sale Tax Payable" account. This will then cause a clearing of the liability created by the Preliminary Journal Close routine. If you have more than one store code, the sales tax liability will be amortized by store, based on sales volume of each store.
If you leave your sales tax liability number at 0.00 when closing the journal, no bookings to either of the accounts mentioned above will take place. Leaving this number at 0.00 would mean that you have already posted your sales tax liability to accounts payable through the "Add/View/Edit" routine in the Accounts Payable module, at which time you would have booked your sales tax directly to your "Sales Tax Expense" account. Of course, this method would require that you date your entry into Accounts Payable with the same period as the liability period. (i.e. If you had a sales tax liability for the month of July 1999 of $10,000.00, posting that liability directly to Accounts Payable instead of through the Journal Close routine would mean you would have to enter that payable prior to closing the journal and the payable would have to be dated with a July 1999 date. This would result in a credit to your "Accounts Payable" account and a debit to the account specified in your accounts payable record. On the other hand, if at Journal Close you entered the $10,000.00 figure as your tax liability, the system would automatically credit your "Sales Tax Payable" account with $10,000.00 and debit your "Sales Tax Expense" account with $10,000.00. Then when you remitted your actual monies to the Sales Tax entity(s) you would post such payment to your "Sales Tax Liability" account, which clears out the liability created at Journal Close.)
An very important System Option when it comes to Sales Tax Accounting is Setup Sales Tax Accounting. Click here to go to a detailed article on this System Option.
Inventory Sub-Accounts and Adjustments
You will be given the opportunity to post all inventory withdrawn by sub account code. Sub-accounts for inventory are the same as the product codes. For example, sub-account 01 will be carpet, 02 will be vinyl, etc.
You will be asked at this time if you wish to include Inventory Adjustments. See Inventory Adjustments for further explanation of this procedure. Should you choose, all Inventory Adjustments will be posted to the General Ledger.
Print Journal
This selection will print a Journal that has had the Journal closed. You have the option to set the following parameters.
Files to Print
You have the option here to print the Journal or the AP. Select the Print Journal option.
Stores
You have the option to tag a single store, multiple stores or all stores for printing. There is also an option to combine the selected stores into one report. If you chose to do so, your report will merge all data from all selected stores into one document.
Single or All Account Codes
In this selection, you may tag one Account Code, all Account codes or as many codes as you would like to have included on your Journal Report.
Beginning and Ending Dates
Enter the beginning and ending dates of the Journal.
Sort Order
This selection determines which order things will be sorted and appear on your report. You have the choice to print Store/Act or Act/Store.
Preview
Click here if you wish to view your report before printing.
Custom Print Configuration
If you have any custom configurations, you may select the appropriate one from the drop down list provided.
Output to CSV
This option allows you to export your report to an external file.
Trial Balance
This selection will print a trial balance for any month that has had the journal closed. This is the same report as the Preliminary Trial Balance report except that it is for a period that has had its journal closed.
Month to Print
Select which month you would like to print a Trial Balance Report for.
Print Preview
Click here if you wish to view your report before printing.
Output to CSV
This option allows you to exporting the report to an external file.
Balance Sheet
This selection will print a balance sheet for any month that has had the journal closed. The report will show whether it is a pre-G/L close report or not. The following options are available:
Stores
You have the option to tag a single store, multiple stores or all stores for printing. There is also an option to combine the selected stores into one report. If you chose to do so, your report will merge all data from all selected stores into one document.
Month to Print
Select which month you would like to print a Balance Sheet Report for.
Print Preview
Click here if you wish to view your report before printing.
Output to CSV
This option allows you to exporting the report to an external file.
Statement of Income
This selection will print a Profit and Loss Statement for any month that has had the journal closed.
Options to print:
Stores
You have the option to tag one store or all stores for printing. There is also an option to combine the selected stores into one report. If you chose to do so, your report will merge all data from all selected stores into one document.
Report Type
Single Month
This option allows you to print only one month at a time.
Current/Previous year comparison
This option allows you to print a comparison between the present year's and the past year's income statements.
Six months at a glance
This option allows you to print the income statement for the last six months comparative to the previous year.
Twelve months at a glance
This option allows you to print the income statement for the last twelve months.
Month to Print
Select which month you would like to print a Statement of Income Report for.
Custom Print Configuration
If you have any custom configurations, you may select the appropriate one from the drop down list provided.
Print Preview
Click here if you wish to view your report before printing.
Output to CSV
This option allows you to export your report to an external file
Cash Flow
This report shows how cash is moving and the origin of non-income cash. It explains how the change in balance sheet accounts plus income equals the change in cash accounts.
Close G/L
This selection will close the General Ledger for a specified month. The screen will display the last month for which the General Ledger is still open. You may also view specific G/L accounts already closed.
Month to Close
Chose the month for which you wish to close the General Ledger.
Once you close the General Ledger for any particular month, you may not make any adjusting entries to that month.
View G/L
This selection displays information on a specified general ledger account for a month or months in which the general ledger has been closed. Options are:
Date - displays month entered along with all previous closed months (since the last G/L Clear).
Store Location - single account code only
Account Code - single account code only
Print G/L
This selection will print a summary listing of the General Ledger file. You may select the month to print, combined or sub-totaled by store, a single or all stores.
Month to Print
Select which month you would like to print a General Ledger Report for.
Print Preview
Click here if you wish to view your report before printing.
Output to CSV
This option allows you to export this report to an external CSV file.
The General Ledger may be printed only for a month in which the General Ledger has been closed.
G/L Year End
This selection should be run at the end of a fiscal year. It will end the General Ledger at the last month closed, reset sales and expense accounts to zero, and carry proper balances forward. Have at hand your retained earnings account number. The system will determine your profit or loss (Sales - Expenses) and post the difference to this account to be carried forward into the new accounting year.
All Journal detail reports to this date should be printed prior to running this procedure. Many run a journal listing for the entire fiscal year before running this option. Journals may be closed for the new accounting year even if the G/L year-end process has not been completed, you may still generate financial reports for prior months. The ending balances for all accounts are retained. Before closing the year be sure that you have closed all the General Ledgers for the last twelve months.
You may not close more than twelve months.
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