AMS360 insights: Preparation for year-end close

January 7, 2019 /

Written By: Nick Klosterman, Customer Support Specialist

Have you ever wanted to troubleshoot a minor problem or set up a new function without needing to call support? We strive to help you succeed and we know how valuable your time is. That’s why, each month, we’re bringing you a support tip to help you resolve your issues as quickly and easily as possible. These AMS360 Insights are just one way we want to help you become better every day.

Happy 2019! With the holidays behind us, the real fun begins: closing out the 2018 year. Not super thrilled about this? Not to worry – we’ve created guidelines to help make the Close Fiscal Year process run smoothly for your agency.

The Beginning of the End: a Few Prior Mentions

  • This process typically consists of two parts:
    • Closing any prior year income and expenses to an equity account
    • Entering year-end adjusting journal entries based on the advising of your agency’s accountant/financial advisor
  • Printing any report affecting the income and expense accounts (General Ledger, Balance Sheet, Income & Expense Report, Trial Balance, etc.) before running the Close Fiscal Year process is recommended.
  • Each division has a different fiscal year and can therefore be closed separately if needed.
  • Aside from the user running the Close Fiscal Year process, all users must be logged out of AMS360 before the process can begin. If you receive the error Some accounting processes are running in the system. You cannot run Fiscal Year End until completion of all these processes, first verify all other users are logged off. If the error still occurs, you may need to clear an application lock.

Running the Close Fiscal Year process

  1. Open the Financial center
  2. On the left select the Actions tab, and then select Close Fiscal Year under the Financial Processes header.
  3. On the next screen, in the column labeled Run FYE select the year(s) and division(s) to be closed, the description will default to “Year End Closing,” but can be changed if needed.
    • Note: You may close multiple years and divisions while running this process. All year end journal entries will be dated the last day of the fiscal year they close.
  4. Click on the GL# box and select the appropriate equity account for the closing entries to post to.
    • Note: Many agencies use GL 35100000 (35100 on versions 8.0 or earlier). However, this may not be appropriate for each agency. Vertafore recommends consulting your accountant or financial advisor if you have any uncertainty over which account to use
  5. Click Run Fiscal Year
  6. A message will appear indicating the process is completed. Click OK to close the message
  7. The fiscal year and division will now appear in the grid on the bottom of the screen titled Closed Years By Division.

Creating Year End Adjusting Journal Entries

  1. Open the Financial center
  2. On the left select the Actions tab, and then select Year End Adjusting Journal Entry under the New header
  3. On the next screen select the division for these adjustments
    • Note: The menu will only show division you have security rights to
  4. The Journal Date defaults to the last day of the most recently closed fiscal year. This date can be changed.
  5. The Journal Memo defaults to “Year End Adjusting Journal Entry.” It is recommended to enter a memo more descriptive of the reason for the adjustment. For example: Post amortization adjustment per CPA
  6. Select New on the far right of the bar titled Other GL Accounts. Select the GL accounts and amounts for the adjustment.
    • Note: All positive amounts will show as debits, and all negative amounts will show as credits regardless of which accounts they affect.
  7. Ensure in the Totals section Debits and Credits are equal, and Balance is zero.
  8. Click the Post icon in the top left
  9. If these adjustments affect any previously closed fiscal years, then those years will need to be closed again. After posting all Year End adjustments, run the Close Fiscal Year process (listed above) again if needed.

The following MyVertafore articles may also be helpful:

3874 - How to close Fiscal Year and Year End Accounting

4306 - Close Fiscal Year error: Some accounting processes are running

3886 - How to reclose a fiscal year

4036 - Accidentally Closed Current Fiscal Year

With 2019 underway, we know it can be stressful to do the work you need to close out the previous year. We hope these tips helped make your life a little bit easier during this process. If you have any questions or need personalized support, please reach out to us by either calling 800-444-4813 and selecting option 2 or logging in online through MyVertafore.