KY Year End Processing for SunSystems 4.

YEAR END PROCESSING FOR SUNSYSTEMS V4.4

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KY Year End Processing for SunSystems 4.4

Table of Contents

1. YEAR END PROCESSING FOR SUNSYSTEMS V4.4 ..................................................................... 3

1.1 Overview.......................................................................................................................... 3
1.2 Current Default Period .................................................................................................... 3
1.3 Date and Period Restrictions ........................................................................................... 5
1.4 Period/Year End Reporting .............................................................................................. 6
1.5 Closing off a Financial Year .............................................................................................. 7
Exercise 1: Transferring Year End Profit or Loss ..................................................................... 8
1.6 Creating Budgets for a New Year .................................................................................. 11

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1. YEAR END PROCESSING FOR SUNSYSTEMS V4.4

1.1 Overview

SunSystems is a very flexible, open system where no restrictions are imposed on

period end processing. The transition from one period to the next is fairly seamless
and can be undertaken without having to perform any kind of period close.

Although you are not required to perform period or year end routines at a fixed
period of time, you probably want to carry out standard period and year end
procedures at regular intervals. There are a number of common requirements
including period/year end reporting and adjustments, and transferring the year end
profit/loss to the balance sheet.

You can continue with entries for the new period/year while in the process of
‘closing’ the previous period, with no restrictions except those you choose to impose.

1.2 Current Default Period

You can determine the specified current period within SunSystems by pressing F9

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In addition to the current period, this screen also displays user defaults such as user
name (Operator Id) and serialistaion details.

The current default period for Financials is specified using New Period.

To open the Change Period screen, either:

1. Type NP (New Period) in the shortcut menu, or

2. Using the tabs provided in the Navigation Manager, select tab Ledger
Accounting  New Period.

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This period is presented during transaction entry, report selection, and other
functions as the current or default period. The number of periods in a year is
determined by the Maximum Number of Periods setting in the Ledger Definition
(LA\LD). Most companies have 12 periods, or 13 if they use a separate period for
financial year end adjustments, or they may use 13 four week periods.

1.3 Date and Period Restrictions

It is good practice to apply restrictions on the movement to another period for

security reasons. You can prevent operators from posting transactions to prior or
future periods by setting the open period range to the current period on the Ledger
Setup.

To open the Ledger Setup screen, either:

1. Type LD (Ledger Definition) in the shortcut menu, or

2. Using the tabs provided in the Navigation Manager, select Ledger

Accounting  Ledger Definition.

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If you wanted to restrict users to only post transactions to the current period, the
open periods could be set to C (current period). Other options for Open Periods
include +nnn and –nnn, where nnn is the current period. You can also physically
type the open periods, as per the screen shot above. The disadvantage of physically
typing a period range is that it needs to be regularly maintained.

You may also set constraints on the dates that can be used for transaction processing.

You can further restrict the periods available to certain operators in the
Miscellaneous Restrictions via User Manager

1.4 Period/Year End Reporting

You should ensure that all audit reports are printed and filed for each period.
Reports such as your Trial Balance, Profit and Loss and Balance Sheet reports should
be generated and filed.

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KY Year End Processing for SunSystems 4.4

1.5 Closing off a Financial Year

The steps for closing off a financial year are as follows:

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Exercise 1: Transferring Year End Profit or Loss

We will now look at ‘closing’ 2010 and ‘opening’ 2011.

1. Select LA\LD (Ledger Definition) from the Shortcut menu.

2. Ensure the Open Periods and Open Dates are valid for 2010 and 2011.
3. Exit the Ledger Setup screen.
4. Type NP (New Period) from the shortcut menu, or using the Navigation
Manager (NM) tabs, select Ledger Accounting  New Period.

5. Change the Financials Current Period to 01/2011 and press ENTER, or click
OK. A message will be displayed at the bottom of the screen: Current Period
Amended

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You could also amend the Current Period in Ledger Setup.

6. From the shortcut menu select LA\TB (Trial Balance) or using the NM tabs,
select LEDGER ACCOUNTING  Trial Balance.

7. Press ENTER, or click OK to accept the default of Select By Accounting Period.

8. Press ENTER, or click OK to accept the default Accounting Period, or type
01/2011 and press ENTER.
9. Click OK to accept the default settings.
10. Type S to store the report
11. Type in VR – View Report to go to the View Report screen, enter in “. “ or select
from the three dots to view the report
12. Scroll to the last page and record the Total Prior Years Profit/Loss.

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13. Ensure that a Balance Sheet account for Retained Earnings has been setup.
Access CA (Maintain Chart of Accounts) from the shortcut menu.
14. Enter your Retained Earnings Account code, or click OK. (in our example we are
using account 97000)

15. Click Insert to create a new account for the Prior Years Net Profit/Loss.

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16. Enter your new Account Code of Z9999 and press ENTER, or click OK.
17. Enter a Description of Prior Years Net Profit/Loss.
18. Enter a Lookup Code of PRIOR.
19. Select an Account Type of P- Profit & Loss.
20. Ensure the Balance Type is Open Item.
21. Press ENTER, or click OK to save the new account code.
22. Access JE (Journal Entry) function, enter S in the action box to start. Enter a
Journal Type of GJ (General Journal). Press ENTER, or click OK to enter the
journal line details.
(NB: The journal selected in this step are training examples only – please select
your companies journal types)
23. Enter a Transaction Reference of Y/E 2010 and press ENTER, or click OK.
24. Enter the Accounting Period to 12/2010.
25. Enter a Transaction Date of the 30/06/2010.
26. Enter a Description of Transfer Prior Years Profit.
27. Enter your Prior Year Net Profit/Loss Account Code of Z9999
28. Enter the Base Amount as recorded from the Trial Balance (in this case
207,765.07) and a Debit.
29. Click OK to enter the other side of the transaction.
30. Enter your Retained Earnings Account Code of 97000, and the above Base
Amount and a Credit.
31. Click OK and then enter P to post in the action box or select Post from the
Actions menu

If you enter any adjusting entries to the previous year, you will
have to enter a closing journal again.

32. Click Exit to close the Journal Entry screen.

1.6 Creating Budgets for a New Year

When you have commenced a new year you may look at creating new budgets for
that year. You can maintain up to 10 different budget ledgers within a business unit
(database) and use these alongside your actuals ledger.

The primary budget is identified within (SS DB) Maintain Database Definitions.

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This budget is used for budget checking. You can use other budget ledgers to hold
additional budgets or forecasts. For example: revised budgets, next year’s budget or
last year’s budget.

There are a few ways you can enter budget figures into SunSystems.

Enter the budgeted figures through Ledger Entry

If the budgeted figures are entered via Journal Entry, you can use Journal Presets to
speed up the entry of budget transactions. This can also be used for budgets which
are not spread evenly throughout the year.

Use Q&A XL

Query & Analysis (Q&A) XL can be used to create a file to be imported into
SunSystems Financials for budget figures. This application uses an Excel spreadsheet
and has the facility to export figures from SunSystems Financials into a spreadsheet,
and import figures into the nominated budget ledger.

Use Q&A Budget Management

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Q&A Budget Management enables you to control the entire budgeting process,
including the dispatch and collection of budgeting workbooks and automatic transfer
of the budget data from Excel to the SunSystems budget ledger.

Using Corporate Allocations

You can use Corporate Allocations to uplift budgets. You can take actual figures and
uplift them and import these figures into the budget ledger using SunSystems
Corporate Allocations.

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