Financials YearEnd Processing Paul Sterzinger Senior Business Analyst
Financials Year-End Processing Paul Sterzinger Senior Business Analyst Lawson R&D This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Accounts Payable • AP 195 – Period Closing is run to insure all transactions have been processed and interfaced to the general ledger. • After the last period is closed for the fiscal year, run AP 199 – Vendor Balance Year End – Updates the new year period end dates on the vendor group. – Transfers the current year vendor balances to last year. This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Accounts Payable • Archiving/Purging Vendor Invoices – Archiving invoices is used to speed up batch and on-line performance (AP 198). • Moves historical invoice, distribution and payment records to archive files. – May be used instead of purging – You can inquire and or report on archived invoices. – Purged invoices permanently deletes records and archives them to a csv file (AP 300). This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Asset Management • Make sure you are finished adding, adjusting, transferring and disposing of asset records. • Release transactions using AM 170. • Determine if the 40% tax rule applies to the depreciation calculations. – This rule requires that if 40% or more of all assets are placed into service in the last fiscal quarter, special depreciation calculations apply This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Asset Management • 40% tax rule determination. – Run AM 220 to list assets added during the past year. – Run the AM 220 again for assets added during the last quarter. – Compare the reports to determine if 40% of the assets placed in service during the year were placed in the last quarter. This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Asset Management • If the 40% rule applies, adjust the depreciation conventions for the assets that were placed in service during the fourth quarter of the year. – Run AM 125 – Mass Adjustments. On the Asset Book Adjustment tab change the convention code to MQ (Mid Quarter) – Update the changes made in AM 125 by running AP 170 – Processing Release This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Asset Management • Continue running the normal period close process. – Run AP 180 - Depreciation Calculation. – Run system reports and verify asset information. – Once satisfied that the reports and assets are correct post and close the period by running AM 190 - Period Close. – Running AM 190 with the release parameter set to yes is irreversible. This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Asset Management • Run year end reports. – – – – Addition Report AM 220 Adjustment Report AM 225 Transfer Report AM 230 Disposal Report AM 240 Projection report AM 255 Asset Report AM 260 Property Report AM 265 Account Balance Report AM 270 Current Year Deprecation Report AM 280 Book Comparison Report AM 285 Tax Credit Report AM 290 Recapture Report AM 292 FASB Reconciliation Report AM 295 This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Asset Management • Make sure you have run all reports. You can not run them once year end is processed. – Note: If you have depreciation history enabled for the books you can use AM 281 – Depreciation History Report to report on previous year depreciation history • Back up the data. • Run AM 195 – Year End Close to close out the year. • Verify the year end was successful by opening AM 01. 1 – Calendar and inquiring on the company and book. This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Activities • There are no mandatory procedures for year end processing. • Optional - run AC 195 -System Control to close activities on a monthly basis. – Closing the activities allows the users control over transactions for balancing purposes. – Most clients do not close activities because there is no back posting functionality This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Accounts Receivable • AR 199 – Period Closing Report is also used for year end processing. – The AR 199 is run with the year end parameter set to “Y”. • In addition to normal period end processing the AR 199 will rolls the following balances from current year to last year. – Period Billed, Chargebacks, Credits, Write-offs and Paid • Moves any value for the next year to the first period. • Moves the year-to-date Invoice Payment Average (IPA) and Days Beyond Terms (DBT) totals to last year to update customer statistics. • The AR 199 should prompt you to run the year end option for the last period – Do NOT run the AR 199 twice. This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Lawson General Ledger Year-End Procedures This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Year-End Process Flow Backup Lawson Data Verify Fin. Stmts. for LY (2004) • Run GL 291, GL 292 & GL 293 Final Close all periods of LY (2004) • Run GL 190 to post all entries • Run GL 199 with Final Status Verify all subsystems are closed in CY (2005) • Required if using This information is confidential and proprietary to Lawson © and cannot be reproduced withoutclosing permission. control
Verify Fin Statements for Last Year (2004) • • Verify totals Verify company is in balance This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Final Close All Periods of Last Year (2004) • May want to verify year-end fin statements after running this This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Verify Subsystems are Closed in Current Year (2005) • • Access from Drill around on Company field Interface subsystem entries, then close subsystems This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Year-End Process Flow Are you using Currency Exchange? Yes Run Currency Revaluation (GL 191) No • Run AP 191 and AR 196, if applicable Are you using Currency Translation? Yes Run GL 195 or GL 196 to translate multiple CUs This information is confidential and proprietary to Lawson © and cannot be reproduced without permission. into a common CU No
Year-End Process Flow Do you store statistical amounts/units in Budgeting? Yes Roll statistical or historical budgets forward one year using FB 120 Backup Lawson Data This information is confidential and proprietary to Lawson © and cannot be reproduced without permission. No
Roll Statistical/Historical Budgets Forward • Roll statistical or historical budgets ahead one year so RW reports don’t need to be modified This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Roll Statistical/Historical Budgets Forward This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Year-End Process Flow Verify Year-End Fin. Stmts. for CY (2005) • GL 291, GL 292 & GL 293 Review period end dates for NY (2006) • GL 10. 1 Close last period of the current year • GL 199 -Limited status Verify Fin. Stmts. for pd. 1, CY (2006) This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Verify Year-End Fin Statements for Current Year (2005) • • Verify totals Verify company is in balance This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Review Period Ending Dates This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Close Last Period of Current Year (2005) • Closes the last period and the year • Rolls account balances forward – Current year – Next year last year current year • Creates consolidation records for next year • Calculates beg. balance for all BS accounts for next year • Creates a closing entry with a status of history in period 99 – Undistributed RE RE This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Close Year - Consolidation Company • Doesn’t auto-reverse entry in next period • Reverses out balance sheet account balances in period 1 – Prepares system for translation in new year This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Year-End Closing Entry • Use Journal Control (GL 45), Journal Analysis (GL 41) or Trans. Analysis (GL 90) to display year-end closing entry This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Processing in NY before Closing CY • Select Next Yr Beg Bal prior to closing year to calc beg balances for the next year This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Processing in NY before Closing CY • • Use to bring adjustments from CY to NY prior to closing year Can run multiple times for multiple batches of adjustments This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Verify Fin Statements for Period 1 (2006) • • Verify totals Verify company is in balance This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Year-End Process Flow Adjust dates on CA and RJ entries • Use CA 10. 2 & GL 70. 2 to adjust dates for CY (2006) Delete Transaction History using GL 300 Delete unused accounts • Use GL 122 for posting accounts • Use GL 100 for detail accounts This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Adjust Dates on CA Entries • May want to adjust ending dates beyond the end of the CY (2006) This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Adjust Dates on RJ Entries • May want to adjust ending dates beyond the end of the CY (2006) This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Delete Transaction History • • Can delete unwanted transactions, balances & budgets Can optionally save information in archive files This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Delete Unused Posting Accounts • Accounts must have no budgets or transactions for at least two years This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Delete Unused Detail Accounts • Accounts must have no budgets or transactions for at least two years This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Special Considerations – Period 13 • Can I use period 13 as an adjustments period? – At least one day must be dedicated to this period – Journal entries can be auto-reversed from period 12 to period 1, other entries cannot – Spread action in budgeting spreads to all periods This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Special Consideration – Commitment Accruals • What is the purpose of Period Year End GL Commitment Accrual? – Optional process – Updates period/year on outstanding commitments & encumbrances – Create accruals for outstanding commitments & encumbrances • Auto reverse accruals in next period – Year-end – can create a budget journal entry for NY instead of an accrual entry This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
Related Knowledge Base Articles • General Ledger Year End Closing Process – Articles 83938, 74398, 532032, 550248 – What Happens When I Accrue Encumbrances & Commitments? – Articles 73832, 100884 • Consolidation Company Year-end Entry – Article 72115, 83940 • Performing Optional Year-end Procedures – Article 532046, 92992, 73910 This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
QUESTIONS ? ? Paul Sterzinger Senior Business Analyst This information is confidential and proprietary to Lawson © and cannot be reproduced without permission.
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