10 Work with the Annual Close

This chapter contains these topics:

10.1 Working with the Annual Close

You can use J.D. Edwards base software to complete the annual close for the fiscal year. When you close the fiscal year, you must:

  • Close and calculate retained earnings

  • Make adjustments

  • Close profit and loss accounts

  • Record the profit and loss for the fiscal year

  • Close balance sheet accounts

  • Print the G/L Registration Report with adjustments and closing entries

  • Re-open balance sheet accounts

  • Print the G/L Registration report with re-opening journal entries

  • Print the General Ledger report

During the beginning months of the new fiscal year, you can make adjustments to the transactions of the previous year. To identify journal entries for adjustments in the system, the adjustment entries must include the following information:

  • The G/L date must equal the end of the previous fiscal year

  • The document type must be ##, to indicate that the entry is an adjustment

The system prevents you from recording journal entries in the previous year unless the entries have a document type of &&. In addition, when you update the beginning balance in the Account Balances file (F0902), the system includes journal entries with the document type of &&.

In Italy, businesses complete the following phases at the close of the fiscal year to prepare the year-end balance sheet:

  • Adjustment and integration of journal entries

  • Close profit and loss accounts for revenues and expenses that were recorded during the year without carrying over the balance

  • Calculate retained earnings

  • Close balance sheet accounts on a summary account "ending balance sheet" and reopen the same balance sheet accounts for the following fiscal year.

During the close of the fiscal year and the preparation of the balance sheet, Italian businesses complete the following control reports:

  • Trial Balance

  • General Ledger

All the journal entries that the system generates for the close of the fiscal year are recorded on the G/L Registration report.

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