ACUMATICA FISCAL YEAR CLOSING

Acumatica year-end closing is performed automatically when the last period of the financial year is closed. Accordingly, closing the last period of the financial year should be done only when the company is ready to close the General Ledger financial year. Period-end closing for the last period of the financial year must be completed in all other active modules before users can perform year-end closing in the General Ledger module.

The year-end closing may include the following stages:

• At the end of the financial year, generating periods for the new year and activating at least one of them
• Carrying out the operations according to your company’s “year-end” checklist
• Closing the last period in General Ledger and fulfilling all the requirements

During closing of the financial year, the balance of YTD Net Income account updates the Retained Earnings account, which accumulates the net income over years. After that, the balance of the YTD Net Income account is reset to zero for a new financial year. The balances of the balance sheet accounts are simply transferred into the new financial year, while balances of other accounts are reset to zeros.

Closing Procedures

Follow your company’s internal procedures to determine the prerequisites to closing a financial period. The following tasks might be required to be completed before performing a period close:

• Generating recurring documents and releasing them
• Performing allocations
• Performing revaluation of currency accounts
• Release and depreciation of Fixed Assets
• Tax adjustments
• Inventory adjustments
• Generating and reviewing the trial balance

To close a period in the General Ledger, you must first close the period in the subledger modules that are being used. These include the following:

• Accounts Receivable
• Accounts Payable (at year-end you must print out the 1099-MISC Form report and close the year for 1099 payments)
• Cash Management
• Fixed Assets
• Taxes
• Inventory

Optional: You can also close the period in subledgers along with the general ledger after performing period-end activities. Refer to your company’s internal procedures.

If you need more information, there’s always the Acumatica Wiki, which can help walk you through specific steps and screens. Click here to go directly to information on Closing Financial Periods in Acumatica (this example uses 2020 R2 but the process will be the same).

If you need personalized assistance, ACC Software Solutions has a team of Acumatica experts who can help with any situation. Contact our support specialist!