After the final regular period has been completed, backup the General Ledger data base to a separate set of diskettes outside the regular cycle. These are to be set aside for archives.
When subledgers are on a very different timetable from the General Ledger it can be necessary to define the accounting periods even before we are ready to open the new year. Use this update to create the periods for the coming year immediately. These periods will then be used when the new year is opened.
Simply select this option when the last period of the old year is completed and you are ready to begin the new year. After the procedure is completed, a Trial Balance is recommended to confirm the opening balances. The period ending dates should also be reviewed.
After closing adjustments have been completed, select this option to confirm the opening balances for this year and to close the old year. If there have been a significant number of closing adjustments, a new backup should be done for the archives. After the procedure is completed, a Trial Balance is recommended to confirm the opening balances. The close does nothing if the status of the previous year is not open.
Occasionally extraordinary adjustments must be made after a year has been closed. You must reopen the old year to enter these adjustments. If the previous year is marked as closed the status of the previous year is set to open and the current year is not changed. If the previous year is open the current year is set to the previous year and the status of the previous year is set to closed. After the adjustments are posted you must close the old year again to include the adjustments in the opening balances for the current year.