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Capturing Changes
If you experience accounting changes you want to capture after you have run the Create Income Statement Closing Journals program, consider the following options: Option 1, Retained Earnings Account Template: If you only using the Retained Earnings Account Template, reverse all the journals created by the last run of the Create Income Statement Closing Journals program, then run the program again to capture your changes. Option 2, Income Statement Offset Account template: If you are using the Retained Earnings Account Template and the Income Statement Offset Account Template, run the Create Income Statement Closing Journals program to capture the accounting changes made since the last run of the program. Note the following conditions: The account range you specify can be a different range but it must include the original account range you submitted before accounting changes were realized. The account range you specify must include the income offset account. Changing The Default Reversal Method To change the default reversal method: Choose the reversal method you want to use in the Journal Reversal Criteria window before you run the Create Income Statement Closing Journals process. OR After you run the Create Income Statement Closing Journals process, navigate to the Journal Entry window, query your generated journals and change the reversal method. Additional Information: MRC Sets of Books: You should run the Create Income Statement Closing Journals separately for the MRC primary set of books, and then for each of the reporting sets of books. Post your generated closing journals separately as well. Average Balance Sets of Books: Create Income Statement Closing Journals only creates standard closing journal entries for any set of books with average balance processing enabled. Non Consolidating Set of Books: The effective date of the closing journal entries is the last day of the specified period unless you assign effective date rules for the journal source called Closing Journals in the Journal sources window. See: Journal Sources When the closing journals are posted, the standard and average balances are both updated. If the closing account is specified as an income statement account, the revenue and expense account balances are transferred to this closing account. There is no effect on average balances. If the closing account is specified as a balance sheet account, and the defined period is the last period of the fiscal year, the average balance of the closing account is updated. The average balance of the Net Income account and the net average of all income statement accounts is also updated. Consolidating Set of Books: The Create Income Statement Closing Journals will only create closing journals for standard account balances, not average account balances. To create income statement closing journals: 1. Navigate to the Submit Reqest window. 2. Choose to Submit a single request.
Changing The Default Reversal Method To change the default reversal method: Choose the reversal method you want to use in the Journal Reversal Criteria window before you run the Create Income Statement Closing Journals process. OR After you run the Create Income Statement Closing Journals process, navigate to the Journal Entry window, query your generated journals and change the reversal method. Additional Information: MRC Sets of Books: You should run the Create Balance Sheet Closing Journals program separately for the MRC primary set of books, and then for each of the reporting sets of books. Post your generated closing journals separately as well. Average Balance Sets of Books: The Create Balance Sheet Closing Journals program creates journal entries for standard account balances for sets of books with average balancing enabled. Companies using average balance processing should create an accounting calendar with two adjusting periods at the end of the fiscal year you want to close. The first adjusting period, representing the last day of the fiscal year, is used to generate the Closing Journals program. The second adjusting period, also representing the last day of the fiscal year, is used to reverse the closing journal. This ensures that average balance calculation is unaffected. To create balance sheet closing journals: 1. Navigate to the Submit Request window. 2. Choose to Submit a Single Request. The Submit Request window appears. 3. In the Request Name field, select Close Process: Create Balance Sheet Closing Journals program. 4. Complete the following parameters: Period: General Ledger defaults with the latest open period. Typically, you specify an adjustment period that represents the last day of your fiscal year. Account From: Enter the starting account range. Account To Range: Enter the ending account range. The range can span multiple balancing segments and include your entire chart of accounts listing. General Ledger only extracts balance sheet account balances within the range you specify. Closing Account: you must specify a balance sheet closing account. If you are closing multiple balancing segments, General Ledger creates a separate closing account for each balancing segment. Category: Balance Sheet Close appears automatically in this field. Note: If the balance sheet closing account is within the range you specified, General Ledger ignores this account when extracting balances. 5. Choose OK to close the Parameters window.