Month End/Year End Procedures VMS (GUI) Presenter: Linda Kennedy

MONTH END CLOSING Closing the End of the Month rolls the date in the company file for each module as they are closed. Each module will need to be closed individually before the General Ledger is closed. Each application will need to be closed individually before the General Ledger is closed. The three that do not need to be closed are Service Management, Estimating, and Time & Material.

By going to Administration > Company Set Up > Existing Company > (module), you can see what the Current Period-begin and Current Period- end is. This is the same for each module that has a closing routine. The General Ledger company file shows the Accounting Period dates. You can quickly see if GL is closed for a certain period if there is a check mark in the CLOSED column. The GL Current Period is shown in the box below the first column.

Closing Accounts Payable Accounts Payable > Miscellaneous > End of month closing Double check that the Current Period the Next Period dates are correct and then select Continue – and that’s it!

The end of month closing in Accounts Payable advances the date in the Accounts Payable Company file.

Closing Accounts Receivable Accounts Receivable > Miscellaneous > End of month closing Double check that the Current Period the Next Period dates are correct and then select Continue – and that’s it!

The end of month closing in Accounts Receivable advances the date in the Accounts Receivable Company file.

Closing Job Cost Job Cost > Miscellaneous > Current period closing Double check that the Current Period dates are correct. Be sure to print the reports below – there are accumulators that get cleared.

The end of month closing in Job Cost advances the date in the Job Cost Company file. The current period closing clears the month-to-date cost on the Job Cost Summary Reports.

The year-end closing clears the year-to-date cost and the Job-to-date cost remains until the job is marked “P” for Purge and a job close out has been run under the Miscellaneous Menu tab. This usually is only done at year-end or when you are certain the job is 100% complete. Some users do not run this yearly and keep the information for several years. Once a job is complete, you can mark it with a status of “C” for Closed. This will give you a warning message if anyone tries to enter any cost or billing information against the job. If their password does not have the override privilege they will not be able to proceed.

Closing Inventory Inventory > Miscellaneous > End of Month Clearing Double check that the Current Period dates are correct. Be sure to print the reports below – there are accumulators that get cleared.

The end of month closing in Inventory advances the date in the Inventory Company file.

The current period closing clears the month-to-date category on the Gross Profit Analysis Report.

Closing Payroll Payroll > Miscellaneous > End of Month Clearing The Payroll End of Month screen has instructions letting you know that the End of Month process will clear the Employee Month-to-Date accumulators and lists the specific reports which need to be printed as well as making a current backup. Make sure to close the Month or Quarter before posting a batch which is being paid in the next period. ** It is very important that you print out all of the reports listed under the End of Month Closing. ** These “buckets” are not date sensitive and once the period is closed you can not just rerun them.

Running the End of Month routine clears the month-to-date accumulator “buckets” in each employee file on the Federal and State W2 Tabs. BEFORE Closing End of Month AFTER Closing End of Month The End of Quarter closing clears the accumulators in both the Month and Quarter so there is no need to close the Month and then the Quarter.

How to Run Payroll Reports If you need the information by Division and Department, check the box to Print in DIV/DEPT sequence on the reports that offer this option. Go to Reports > Master File Lists: Choosing ALL is the best option: it will give you results for Month, Quarter and Year. A. Employee Totals Report The only difference in running any of the reports for Month, Quarter or Year is the “Total Level” you choose when running the report.

Select every deduction code used when running the report. B. Deduction Report C. Hours Worked Report D. Cost Center Report (no report options – report just prints)

E. Federal Tax Report Go to Reports > : F. State Tax Report ** There is a new field which when checked, will print the report even if there is no withholding in that period. The default should be to check this box.

This is NOT the check date but the first day of the batch for the first payroll paid in Jan. First day of Quarter 4 & Last day of Quarter 4 Run for each State you need – one at a time. These are the boxes that are most commonly selected to print. G. UC3 Report

Close General Ledger After all other applications have been closed; it is time to close the General Ledger. General Ledger > Miscellaneous > End of period closing.

This advances the date in the company file and marks accounting periods as being closed. If any General Journal entries are entered and marked “Reverse”, it reverses those transactions.

Close the Year in Payroll From the Miscellaneous Menu in the Payroll Module choose End Of Year Closing. You will receive the following warning. If you have not printed your reports or made your backup, do not continue. Click “No” to exit.

BEFORE THE YEAR IS CLOSED: If you have printed your reports and made your backup, click Yes to continue and you will receive the following screen. Enter the tax year Selecting the “Clear VACATION and SICK Pay accruals” box will zero out these fields in the Employee file. Selecting the “Remove TERMINATED Employees” box will delete payroll history for terminated employees and delete them from the employee file. When you click “OK” a holding file containing the W2 data will be created. This holding file will remain in the system indefinitely. W2 information will be available forever. DO NOT CLOSE YOUR PAYROLL YEAR TWICE. IF YOU GET A WARNING MESSAGE THAT THIS FILE ALREADY EXISTS, CALL VMS IMMEDIATELY. DO NOT CONTINUE.

AFTER THE YEAR IS CLOSED: Enter the new Federal and State Tax Tables BEFORE processing the first payroll of the new year. The tax tables can be accessed from the Miscellaneous Menu > Tax table Maintenance > Add/change federal tax table > US tax table. When changing the Tax Table data, be sure to advance (OK at the screen bottom) through all of the screens so that any changes made will be saved.

When processing the first payroll of the new year, verify that the checks are dated for the new year. Employee Federal or State W-2 information can be edited from the W-2 FORMS option. In the Payroll Company file, on the second page, enter 01/01/13 for the date of the first paycheck. This is for the Union deductions for the Pay Stubs.

Close the Year in AP Closing the End of Year closing rolls the date in the AP company file and affects Vendor files. At the end of the year there is no need to close the month - just do year-end closing. It zeros the Payments/This Year field and moves the information to the Payments/Last Year field for 1099 reporting. Vendor Volume Analysis totals are also cleared. If you accidentally close both and the date in the company file is incorrect you can manually change it.

How to Close the Year in GL The End of Year Closing program is used at the end of the year and after all Adjusting Journal Entries are made. It will – close the year for the General Ledger, – post opening balances for the new year, – close PNL Accounts into Retained Earnings and – move the current period to the first period of the new year.

After everything else is closed out and GL files have been copied to a new company for future reference (if desired), close GL. EVERYONE NEEDS TO BE OUT OF THE SYSTEM FIRST – IT DOESN’T TAKE LONG. Verify the GL periods in Admin > Company Setup > Existing Company > GL When you go into GL and choose the Year End closing, it will get rid of year in left column and move the year in the right columns to the first column (period 1-12) and put the next year into the 2 nd column. Verify that all periods in the left column are checked as closed. **The Year that is getting closed is NOT your current year. **

Go to General Ledger > Miscellaneous > End of year closing Print the reports listed on the warning screen:

Click continue – confirm your retained earnings account # is correct. Check the boxes to Print the closing and opening entries report. *This is the ONLY time that you can print these two reports!! The Accounting periods will now look like this: