Year-end closing

Purpose

  • Close a finished financial year: roll profit into retained earnings, store next year’s opening balances, and stop changes to that year.
  • After a year is closed you cannot change Financial Start Period or System Conversion Date.

Menu path

  • Account Setup → Year End Closing. The page title is Year End Listing.
  • Run Year End Closing (cog) — opens Close Financial Year.
  • Roll Back Closed Year End — removes the latest closed year.
  • Lock Month End / Unlock Month End — month lock, separate from year-end. See Month-end close.
  • Listing columns: Closed Year End, Start Date, End Date, Update Count, Created Date.
  • Double-click a row to open Year End Balance for that closed year.

Assistant

  • Say Year-end close or prepare year end accounts.
  • The wizard collects Period, Industry, and Materiality Threshold, then the month-end checklist plus:
  • Retained earnings / P&L closed — profit for the year is ready to roll into retained earnings.
  • Tax computation draft reviewed — tax working papers reviewed. KinraSoft does not file the tax computation.
  • Year-end audit schedules prepared — schedules the auditor needs are ready.
  • Reply yes, or issue: and a note, on those items.
  • Chat does not click Start Year End Processing and does not roll back a year. When the list is clean, run the close on Year End Listing.
  • Say how to close the year for this chapter only.

Before you start

  • Financial Start Period and System Conversion Date are saved.
  • An active Retain Earning sub-account exists on the chart of accounts. Without it the close returns Please setup Retain Earning.
  • The year you are closing has already ended. Today must be after Financial Year-End.
  • Month-end work for that year is done: bank recon, aging, accruals, depreciation, stock value, tax review, and trial balance. See Month-end close.
  • Only one year-end run at a time. If another is still going, you see Year End Closing already in process.

Close the year

  • Finish the checklist in Year-end close (chat) or on the screens. See Month-end close.
  • Account Setup → Year End Closing.
  • Click Run Year End Closing.
  • Read Close Financial Year:
  • Close Financial Year For — the year KinraSoft will close (display only).
  • Financial Start Date — first day of that year (display only). The first close uses Financial Start Period. The next close starts the day after the previous End Date.
  • Financial Year-End — last day of the year. The default length is 12 months. You may change this date when the year is not twelve months. It must be after the start date.
  • Click Start Year End Processing.
  • Wait until Year End Closing Done. The new row appears on the listing (closed year number, start, end).
  • Open Trial Balance and Balance Sheet for the new year. Profit from the closed year should sit in retained earnings as the new opening. Double-click the listing row if you want Year End Balance.
  • What the process stores: next year’s opening balances for balance-sheet accounts, including retained earnings (this year’s profit, with stock); a new financial-year range starting the day after Financial Year-End; a block on add, edit, and delete for any document dated on or before that year-end. The message is Year End Closed, Cannot Delete/Edit/Add transaction.
  • Do not start the close before the year has ended. The messages are First Financial year not yet finish, cannot close financial year. and Financial year not yet finish, cannot close financial year.
  • After the first successful close, Account Setup will not change the two company dates. The message is Year End Closed. Cannot Modify. See Financial start period.
  • Leave the page running until you see Year End Closing Done. A second click while the first run is active is refused.

Roll back the latest year

  • Use this when the close was wrong and you must post into that year again.
  • Account Setup → Year End Closing.
  • Click Roll Back Closed Year End.
  • Confirm Roll Back Closed Year End : {year number} ? The year number is the last row on the listing (the latest close).
  • On success the listing reloads and that year’s opening-balance set is removed.
  • Close an earlier year again only after you have rolled back every later year.

Month lock and year close

  • Lock Month End — blocks dates on or before Locked Month. Does not roll profit.
  • Year End Closing — rolls profit into retained earnings and blocks the whole closed year.
  • Both — a date is blocked if it falls in a locked month or in a closed year.

If something goes wrong

  • Please setup Retain Earning. Add an active Retain Earning sub-account on the chart of accounts, then run the close again.
  • Please setup your Financial Start Period and System Coversion Date. Save both dates on Account Setup. The product spells Coversion that way.
  • Please setup your financial year. Same dates are missing when you open the cog.
  • End Date must be After Start Date. Set Financial Year-End after Financial Start Date.
  • Year End Closing already in process. Wait until the current run finishes. Do not start a second one.
  • Year End Closed. Cannot Modify on Account Setup. Expected after a close. Adjust next year’s figures with journals in the open year, or roll back if the close itself was wrong.
  • Year End Closed, Cannot Delete/Edit/Add transaction. The document date is inside a closed year or a locked month. Use a date in the open year, or roll back / unlock.
  • Retained earnings on the new year look wrong. Check stock value and profit for the closed year, roll back the latest year, fix the books, and close again.

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