The Financial Year-End process in d6 enables administrators to finalize the previous financial year, post audit journals, and allocate net profit or loss to the appropriate equity accounts. This process ensures that the General Ledger reflects an accurate opening balance for the new financial year.
Finances > General Ledger > Year End
The Finance Year-End provides a structured, five-step wizard to transition the school's financial records from one fiscal period to the next. It ensures that all temporary accounts (income and expenditure) are cleared to the relevant equity account (such as Retained Income and Accumulated Funds), maintaining data integrity and compliance with auditing standards.
Before initiating the Year-End Process, ensure the following tasks are completed:
Project Finalization: Close all projects impacting profit or loss for the current financial year.
Reconciliations: Complete bank reconciliations for all bank accounts as at the final day of the financial year (e.g., 31 December). If no bank statements are available to import, but the account remains open with no activity for the period, please contact Support for assistance. If a bank account has been closed with the bank and the balance is zero, you may proceed to close the account on the d6 Finance Management portal (Finances > Cashbook > Accounts).
Journal Maintenance: Ensure all open journals, including the Opening Balance journal, are posted prior to starting the Year-End Process.
Click on Do the Year-End button and progress through the following steps:
Step 0: Allow posting of financial transactions: Allows the system to remain open for transactions relevant to the previous financial year while preparations are made. This is the default starting step of the Year-End process.
Step 1: Block posting of financial transactions: Prevents any further transactions or changes from being processed in the previous financial year, ensuring that the financial data remains accurate and protected during Year-End Process.
Step 2: Trial Balance Submission: Indicates that the final Trial Balance has been downloaded and submitted to the auditors.
Step 3: Allow for the creation and posting of audit journals: The system opens the journal function specifically for the final day of the financial year (e.g., 31 December). In this step, you can capture and post all audit journals provided by the auditors. If adjustments are required to subledgers (e.g., Debtors or Creditors), you need to return to Step 0 to process the necessary corrections before proceeding. Some accounts are restricted and cannot be posted to directly in order to protect the integrity of the system. Please click HERE for more information.
Step 4: Create the year-end journal and allocate the Nett profit: This step generates the Finance Year-End journal in the system. On this step you need to indicate how the surplus or deficit should be allocated between the relevant equity accounts (e.g., Hostel Accumulated Funds and School Fees Accumulated Funds).
Step 5: Post the year end journal to the General Ledger: Execute this step to post the final Year-End journal to the General Ledger. This action officially closes the year.
Automated Balancing: The system calculates the net surplus/deficit based on the difference between total income and total expenditure.
Journal Generation: Completing Step 5 will post a system-generated journal that resets the Income Statement accounts to zero and updates the Retained Earnings / Accumulated Funds accounts.
Sequence Enforcement: Steps must be completed in numerical order. Step 5 cannot be performed before Step 1, as the system must ensure that no further transactions alter the figures being transferred to Equity.
Date Restrictions: Audit journals in Step 3 are locked to the final day of the financial year to ensure they do not impact the transactional flow of the new year.
Data Integrity: Once Step 1 is active, the previous year is locked to prevent discrepancies between the audited financial statements and the system’s Trial Balance.