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JD Edwards World General Accounting I Guide
Release A9.3.x

E21540-03
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50 Understand the Fiscal Year Close

This chapter contains the topic:

When you close a fiscal year, the system calculates and posts retained earnings, then carries beginning balances forward to the next fiscal year. You should close the Accounts Receivable and the Accounts Payable systems for a company for year-end reconciliations to the general ledger. You should close the General Accounting system so that the system can calculate the retained earnings correctly.

50.1 About the Fiscal Year Close

Closing an accounting year generally involves running integrity tests and setting up Automatic Accounting Instructions (AAIs) and ledger types. Each organization's needs are different and can have additional steps such as printing company specific reports.

Note:

Ensure that your organizational specific fiscal year processes are included in your internal documentation.

The following examples illustrate what happens before and after you close the fiscal year.

50.1.1 Example: Fiscal Year Close for Income Statement Accounts

Before the Close

The following shows an income statement account and its monthly net and cumulative balances, before fiscal year 2017 is closed.

Figure 50-1 Account Balance by Month screen

Description of Figure 50-1 follows
Description of "Figure 50-1 Account Balance by Month screen"

Note the following:

  • Prior year end net posting (APYN) for 2016 = 329,420.00-

  • Prior year end cumulative (APYC) = 0. There is no cumulative balance forward because this is an income statement (profit and loss) account.

  • Net posting for 2017 = 375,143.74-

After the Close

The following shows the income statement account, after fiscal year 2017 is closed.

Figure 50-2 Account Balance by Month (Closed) screen

Description of Figure 50-2 follows
Description of "Figure 50-2 Account Balance by Month (Closed) screen"

Note the following:

  • Prior year end net posting (APYN) = 375,143.74-

  • Cumulative balance forward for 2017 = blank. The system stores the cumulative information, but does not display it. It stores this information so that you can see inception-to-date amounts on other forms and reports.

50.1.2 Example: Fiscal Year Close for Balance Sheet Accounts

Before the Close

The following shows a balance sheet account and its monthly net and cumulative balances, before fiscal year 2017 is closed.

Figure 50-3 Account Balance by Month (Balances) screen

Description of Figure 50-3 follows
Description of "Figure 50-3 Account Balance by Month (Balances) screen"

Note the following:

  • Prior year end net posting (APYN) for 2016 = 408.88. There is a cumulative balance forward because this is a balance sheet account.

  • Inception-to-date (ITD) = 1,908.88

  • Net posting for 2017 = 6,776.77

After the Close

The following shows the balance sheet account after fiscal year 2017 is closed.

Figure 50-4 Account Balance by Month (Balance Sheet Closed) screen

Description of Figure 50-4 follows
Description of "Figure 50-4 Account Balance by Month (Balance Sheet Closed) screen"

Note the following:

  • Prior year end net posting (APYN) for 2017 = 6,776.77

  • Inception-to-date (ITD) = 8,685.65

  • Next year's (2018) cumulative balance forward = the prior year's (2017) ending cumulative balance

50.1.3 Example: Fiscal Year Close for Retained Earnings Account

Before the Close

The following shows a retained earnings account balance from 2016, before fiscal year 2017 is closed.

Figure 50-5 Account Balance by Month (Retainage) screen

Description of Figure 50-5 follows
Description of "Figure 50-5 Account Balance by Month (Retainage) screen"

Note the following:

  • Prior year end net posting (APYN) for 2016 = 336.870.34-. This is the retained earnings amount for 2016.

  • The cumulative balance for the retained earnings account is generated by the system and is stored in the Account Balances table (F0902) only.

After the Close

The following shows the retained earnings account after fiscal year 2017 is closed.

Figure 50-6 Account Balance by Month (Retainage Closed) screen

Description of Figure 50-6 follows
Description of "Figure 50-6 Account Balance by Month (Retainage Closed) screen"

Note the following:

  • Prior year end net posting (APYN) for 2017 = 110,780.33.

  • Only the Prior Year End Net and Cumulative fields are updated with the prior year's (2017) retained earnings amount.

  • As each period in 2018 is closed, the cumulative balance from 2017 is carried forward.