ActiveApplications Year End Procedures

Following these steps will create a secure and complete year end process. In the process a forever backup copy of the current database is made, a duplicate database is made with the year added to the end, and the current database will be set to begin the ledger year. During the process a year end report will be created to be saved or sent to your accountant. The previous year database will be exactly the same as your current year before the year is closed. This means you will have access to your old information in its entirety as it was before the ledger year end. It will be available forever. The general ledger year end process puts the income and expense balances to 0 and moves the profit or loss to retained earnings. YTD figures for asset and liabilities will be moved to last year and this year balances are set to 0.

Use SQLSMS to Create a Permanent Database Backup Copy

First make sure to post all sub ledger applications. Those routines are AP Posting, AR Posting and PR Posting. Normally these postings are made weekly or more often in the normal course of ledger processing. Normally all users are logged out but it is not technically required.

Next a permanent backup of your database should be made. SQL Server Management Studio will be used to make the .bak file. This is the first step of the year end process.

There are several versions of SQLSMS that will be matched to your version of the SQL database. These instructions are for the 2012 version. Other versions will be similar.

Select the SQLSMS option to display the SMS login:

Find the database that must be closed once logged in:

Right Mouse Click and Select Tasks/Backup…

Displayed is the Backup Window

Click the Add button to add backup of the AANurseryDemo databse. Displayed is the Add window:

The backup should be called YourDBNamePerm2020.bak. In this case it is AANurseryDemoPerm2020.bak. Insert it to the right of the file name on the Select Backup Destination window.

Click OK to move to the Backup Window. It should look like this:

There are many available options but the defaults should be adequate and quickly the confirmation will look like this:

The permanent backup copy of the database is made. Proceed to the creation of a new database instructions in this article.

Create a New Database and Restore Current Year Information to it

In SQLSMS find the database list and Right Mouse Click on Database at the top then select then New Database option from the menu:

In the resulting widow:

Key in the database name to be created. It best to use the current name followed by the year of the copy. The contents of the current database will be added to this new database during the next step:

In this example I have chosen the AANurseryDemo2020 as the name of the permanent copy for the previous year. The name of the continuing database will remain unchanged at AANurseryDemo.

Click Ok then find the database name (AANurseryDemo2020) in the list of databases:

Right Mouse Click on the new name and select Tasks/Restore/Database:

This window is displayed:

The objective is to restore the current database into the database with the year attached. In this case we will restore the AANurseryDemo database into the AANurseryDemo202 database. It may take a minute to select the backup set created in the first step. When it is displayed change the Destination Database to the one with the year attached as in this:

Select the Options on the upper left menu:

Check the “Overwrite the existing database (WITH REPLACE)” check box as in this window:

The General tab can be clicked again to verify what is going to happen:

Click the OK button to restore the current database over the newly created database (AANurseryDemo will be copied on top of AANurserDemo2020). When complete a confirmation should be displayed:

Before proceeding to the actual GL year end close make sure your new database has been created and contains the same data as in your current year database. This concludes the use of SQLSMS in the year end process. Proceed to ActiveApplications and the General Ledger Year End close program.

General Ledger End of Fiscal Year

1) It may be desirable to have all users exit ActiveApplications. There should be no users posting to ledger during this process because it will create an uncertain data status. Also make sure all holding transactions are posted to ledger.
2) Run an Income Statement and Balance Sheet (if necessary) for your company.
3) Print a General Ledger report for all periods. This is not required since you have made a copy of your database, but gives you a hard copy of the general ledger transactions and account balances and is essential for auditing. This probably will be a very lengthy report.
4) To close the General Ledger year, select from the main menu- Reports/General Ledger/Year End Procedure.

This will display the Year End Procedure

5) Year being Closed: Specify the current fiscal year.
6) Company to Close: Your current company number may appear already filled in. Key it in if not.

7) Period to Post Entries: The period to post to is usually period 12 unless you are on a 13 period accounting system. Key in your period number choice.

8) Close of Year Date: Defaults to today’s date and represents only the date you performed this year end close procedure.

9) Click OK button in fig 2 to complete the automatic processing of the G/L Year End. A G/L Closing report will print listing your G/L Account Credit or Debit Balances.

10) From the main menu click on File/View/General Ledger/GL Company, to bring up the G/L Company View form shown in fig 3 below. Open your G/L Company record. In our example the period dates have automatically been updated to the first day of each month in the year 2003. If your fiscal year is different than the January/December year, simply key in or use the calendar function available on each field to enter your preferred monthly period dates. Then ‘save’ your G/L Company changes.

11) Also go to the Main Control File, General Ledger tab and verify that the Last Period Closed options are set back to 0.

Starting Over:
The only way to start over is to restore the backup you made at the beginning of the procedure. It is not possible to go back and start at any given point in the procedure.
Using the Saved Database:
You will be able to use the ‘saved’ company created at the beginning, to enter transactions for that year that couldn’t be entered before closing, print reports, look up information, create comparative financial statements, or to apply any adjusting transactions you get from your accountant. Once any adjusting transactions are entered and posted, you will need to get the ending balance of the accounts affected and change the beginning balance of those accounts in the current company. To access this ‘saved’ database select from the main menu- File/Open Data (*.mdf). Navigate to the ‘saved’ database and ‘open’ it. This menu option allows switching between databases without having to close and reopen Active Accounting completely each time you would like to use another database. If the Open Data option can’t be selected, make certain that all application screens and windows from the current database in use are closed before you try again.

Billing: – Either end of Calendar or Fiscal Year
1) Make sure you run any inventory reports you need that have the Shipped This Year field on them.
2) Make sure you have entered and posted any invoices and payments you wish to be in the current year so the General Ledger Transactions are created.
3) Once all the reports have been printed, click Reports, Accounts Receivable, and Customer-Inventory Year End. This is the Billing Year End Procedure. It moves the Shipped This Year to the Shipped Last Year and zeros the Shipped This Year in the inventory. Also it moves the Purchases This Year to Purchase Last Year and zeros the Purchases This Year in the customer file. Also does the same for Accumulated Service Charges.

Payroll: – End of Calendar Year
On the last payroll cycle of the year, make sure you check the Close Month, Quarter, and Year options on Begin Payroll Cycle. This will move the current year’s information to a quarterly table when check print is completed. From this table you will print the W2s and any quarterly reports you need. Do not do this twice or you will lose your yearend information.

If you do not close the year on the last payroll cycle you must close it before you run the first payroll of next year. To do this you must run Begin Payroll Cycle and check the Close Month, Quarter, and Year options. Then run Check Register, then Check Print. It will not print any checks but it must go through the process. This will close the year.
Once the last payroll cycle is completed, run any reports you need before beginning the next payroll cycle. At the beginning of the next payroll cycle all YTD balance information will be zeroed.
W2s may be printed any number of times until the end of the next quarter.
Payroll history reports can be run at any time for any time period because they are date dependent reports.
Once the next payroll cycle is started all the figures in the employee, department, and voluntary deduction files are set to zero.

Accounts Payable: – End of Calendar Year
1) Run a vendor history list if you want a hard copy of the vendor purchases information.
2) 1099 can be printed before or after the yearend procedure as it is built for actual historical check records.
3) To close the year, click Reports, Accounts Payable, and Accounts Payable Year End. This will move the Vendor Purchases This Year to Purchase Last Year and Purchase This Year is zeroed.

This routine takes the fields for This Year in the vendor record and moves them into the Last Year fields and zeros the This Year Fields.

This concludes our Year End Close Discussion

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