Understanding Closing Annual Account Balances

Run Asset Account Balance Close to create the next year's balance records with cumulative and net balance forward amounts. The Asset Account Balance Close program also carries forward depreciation information to the next fiscal year. You must run Asset Account Balance Close for the current year before the system can generate depreciation journal entries for the next fiscal year.

When you run the close, new balance records are created in the F1202 table for:

• Asset

• Fiscal year

• Ledger type

• Subledger

• Account (business unit/object/subsidiary)

If you have assets with accounts in several companies, include all of the appropriate accounts and companies when you make your selections. If you close only some accounts for the asset, or if you do not close all of an asset's companies, the close information might be inaccurate.

To include a range of companies in the annual close, ensure that the companies share the same fiscal year pattern.

You can track cost and unit information for disposed assets by setting a processing option to specify the ledgers to which you want to carry balances forward.

You can use Asset Account Balance Close to:

• Close fixed assets.

  You can run the annual close program to close fixed assets any time before or after you close the general ledger.

• Rerun the annual close.

  You can run the Asset Account Balance Close as many times as needed. The first time that you run the annual close, the program creates Asset Account Balances records for the next year. If you rerun the close, the program creates records only if they do not already exist in the system. If the records do exist, the program updates balance information to reflect any new information. Rerunning the close does not update depreciation information.

  For example, after you close fixed assets, you might find that you have more transactions to enter. You can enter those transactions and run the close again. The system processes only those transactions that you entered since the previous close.

• Close more than one company at a time.

  You can close a specific company, range of companies, or all of the companies during the same annual close. You can also close a specific ledger or any other data selection field that is in the Asset Account Balances File table (F1202).

The asset account balance close is separate from the general ledger annual close. When you run Asset Account Balance Close, the program:

• Carries forward fixed asset beginning balance records for the next year by updating the amounts in these Asset Account Balance fields:

  • Prior Year Net Postings

  • Prior Year End Balance

• Creates depreciation information records for the next year.

  You cannot run depreciation for the next fiscal year until you run the annual close.

This graphic shows how the system creates depreciation information records for the next year: