Year End Process

Modified on Mon, 16 Oct 2023 at 03:15 PM

The process is automatic – there is no year-end procedure to run

Navigator knows the customers’ year end date, we needed it to initially set up their system. When Period 12 has passed, Navigator knows all previous years Profit and Loss transactions are totalled and show as a balance in nominal code 0.0.70.9 (see note below).

Nominal Code 0.0.70.9

There is no requirement for a Customer to post a year end journal to clear their Profit and Loss nominal codes. Once in Period 1 of the new financial year, Navigator will total all Profit and Loss balances from the previous year(s) and show in this code. If a Ledger Report is subsequently run for any period in the previous year, Navigator will show the transactions in the relevant period.

Consequently, this nominal code should never display any transactions if a Transactions Report is run.

Check Reconcile Report regularly – at least once a week

The Reconcile Report will daily show any imbalances on the major Balance Sheet Control Accounts.

The balances are compiled as part of the overnight routine, consequently there are never any balances displayed for the current day.

As such they are a “snapshot” of the balances the previous evening; these balances can be amended by posting a journal to the control account nominal code, but the report that highlighted the imbalance will never change. The user will have to wait for the following day to ensure the amendments have been successful.

Bank and Cash Bankings should be reconciled daily

All cash banking nominal codes (*.*.60.0) should be reconciled daily and a journal posted to clear to the bank. There is a “Nominal Linking” process in the Nominal module to allow the user to match the receipts (debits) to the daily journal (credits) to ensure no postings are missed.

The bank should also be reconciled daily to keep the month-end workload to a minimum.

Debtors and Creditors can be run retrospectively

By selecting a previous date on the above reports, they can be run retrospectively.

All other Balance Sheet schedules can be run retrospectively:

Vehicle Stock

By running a “Schedule Nominal” Report (Accounts>Nominal>Reports>Schedule Nominal) an accurate stock list can be run as at any date. As this is a report derived from the Nominal Ledger, this report will always balance to the Trial Balance.

This report can be either printed or exported to a spreadsheet if required.

Vehicle Debtors

The same process as above can be run for Vehicle Debtors.

The above process will also give the user an accurate nominal breakdown for both GANI and Warranty Debtors.

Parts Stock

By selecting the relevant date in the “Reconcile” Report and double clicking on the “Parts Stock” line, the stock as at day end can be viewed and either printed or exported to a spreadsheet if required.

Work in Progress

Same process as above, selecting the “Work in Progress” line on the screen.

Other Balance Sheet codes must be scheduled off the system

These include Nominal Codes for such as Fixed Assets, Accruals, Prepayments, Petty Cash and Cash Floats.

The back – posting prevention date should be set as soon as possible

This is set in Accounts>Nominal>Utilities>Set Up>Back Posting Prevention.

This prevents anyone posting to a date before the one displayed. This date should therefore be the first of the new month and not the last day of the previous month.

Once this is set, a user will require an override code to be able to post to a date prior to the one that is set.

This code is set in Set Up> General Set Up>Nominal Back Posting

For Accountants information/peace of mind:

All After – Sales Departments can only post to the current date when raising invoices and credit notes and accepting goods into stock.

Sales can’t post backdated prior to the back – posting prevention date for either costs or closing deals unless they have the authority number.

Accounts department staff can’t post backdated prior to the back – posting prevention date for either invoices or credit notes unless they have the authority number.

Payments and receipts also can’t be posted prior to the above date.

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