When preparing to do a financial year end, certain tasks must be finalized before the process can begin. They are:
- Closing off of all projects which present profit or loss that have to be closed for the financial year
- Performing all bank reconciliations for all bank accounts, including Money Market and Petty Cash
- Performing a physical verification of fixed assets (if reflected on the Statement of Financial Position)
- Performing a physical count and valuation of stock items (if reflected on the Statement of Financial Position), which consists of:
- Catering and food stock
- Cleaning materials
- Maintenance consumables
- Tuckshop stock
- Other shop stock
Project accounts which represent current assets or current liabilities need to remain active.
Furthermore, the independent audit process needs to be completed for compliance and substantive tests designed to achieve faithful representation (reliability) through:
After the audit has been completed, the school needs to do the following:
All journals for the year-end need to be posted
The school must ensure that the surplus/deficit reflected on the trial balance corresponds with the audited financial statements
Once these tasks have been completed, and you have received the year's audited financial statements and a copy of the auditor's journals, you can proceed to complete the financial year-end. Before you can do the actual year end, the final tasks to complete are:
- Posting all open journals, including the opening balances journal.
- Processing the auditors' journals.
- Reconciliation of all bank accounts as on the 31st of December of the previous year.
How to process the year-end
- Click on the year-end button.
- Step 0: Allows the posting of transactions in the previous financial year
- Step 1: Block further posting of transactions in the previous financial year
- Step 2: Here you can indicate that you have handed the final trail balance to your auditors
- Step 3: Here you can indicate that you have received the audit journals for the year and want to post it. The system will then open the journal function to be posted on 31 December of your applicable financial year
- Step 4: Here you will be allowed to allocate the net profit/loss to different equity or funds accounts. For example, there are several schools that want to allocate their Hostel's profit into separate accumulated funds account or want funds to be earmarked for specific projects
- Step 5: You must do this step to post the financial year-end journal to the General Ledger
You can preview all the posted Year End journals by selecting the posted journals on the drop down for " Choose journals"
Should you require assistance with the posting of journals for your financial year-end, please log a ticket with D6 support as we do have partners that assist schools with this specifically.
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