D Preparation for Annual Close

This appendix contains these topics:

To prepare for the annual close, set up the following elements:

D.1 Automatic Accounting Instructions

The following table lists the AAIs that you must set up in preparation for the annual close.

GLG2	Identifies the first assets account.
GLG3	Identifies the first liabilities account.
GLG4	Identifies the account in which the financial year result is stored. You must set up this AAI for each company.
GLG5	Identifies the last balance sheet account. The last balance sheet account is a nonposting account.
GLG6	Identifies the first profit and loss account.
GLG12	Identifies the last profit and loss account.

The following table lists the user-defined codes that you must set up in preparation for the annual close.

User-Defined Code	Description
Ledger types for post balancing (09/LP)	Set up codes to define ledger types that are different from the AA ledger and for which you want to calculate the profit and loss for the financial year. For example, you might define a specific ledger type to record the financial year result for your Italian operation, including the entries required by local law and tax authorities. All of the adjustments related to the law and tax criteria would be recorded in that specific ledger.
Ledger types (09/LT)	Set up codes to define ledger types that you use for the opening and closing entries for accounts. You might even use separate ledger types for the closing and re-opening entries.
Annual close/spread ledger types (00/LT)	Set up codes to define ledger types that the account closing program uses to update amounts for subsequent periods according to the rules defined for each ledger. The first character that you enter in the Description 2 field determines the rules the closing program uses for the ledger.

The following table lists the ledger types that you must set up in preparation for the annual close.

All user defined ledger types should be identified by a U followed by a digit or a letter.

Ledger Type	Description
UX	Set up the UX ledger type for closing assets and liabilities and profit and loss account entries. Although you can choose any client-reserved two-character code for the ledger type, set up the ledger type on the Ledger Types user defined codes table (09/LT).
UY	Set up the UY ledger type for reopening assets and liabilities account entries. Although you can choose any client-reserved two-character code for the ledger type, set up the ledger type on the Ledger Types user defined codes table (09/LT).

The following table lists the document types that you must set up in preparation for the annual close.

All user defined ledger types should be identified by a U followed by a digit or a letter.

Document Types	Description
##	Document type ## is system-defined. You can use the ## document type to post journal entries for adjustments in the previous fiscal year. Journal entries with the document type ## automatically update the account balance for the previous year.
&& (A8.1)	Document type && is system-defined. You can use the && document type to post journal entries for adjustments in the previous fiscal year. Journal entries with the document type && automatically update the account balance for the previous year.
UX	Document type UX is used for the reopening of the assets and liabilities accounts. Although you can choose any client-reserved two-character code for this document type, you must set up the document type on the Document Type user defined codes table (00/DT).

The following table lists the accounts that you must define in your chart of accounts in preparation for the annual close.

Accounts	Description
Final balance sheet account	Define the final balance sheet account for all of the closing entries related to assets and liabilities.
Beginning balance sheet account	Define the beginning balance sheet account for all of the opening entries related to assets and liabilities.
Profit and loss	Define the profit and loss account for the sum of all of the closing entries related to assets and liabilities and the year's profit and loss entry.