In the last post we walked through how to run a year end simulation and it’s benefits(Read it here if you missed it). The other option to close a fiscal year is using the Fiscal Year End function.
A year end simulation is noncommittal – it creates no entries, nor does it close the year – allowing entries to still be made. When you are ready to formally close a fiscal year, the process is slightly different.
Begin by navigating to Financials > Closing processes > Fiscal Year End
On the following screen, enter the company for which you will be closing the year. Beside it, in the All ledgers column, the default value is yes. Change this to No.
Tab through the remaining fields. The earliest open fiscal year will populate the New Fiscal Year field and not necessarily the current year. ANX document / journal and ledger fields will automatically populate.
Lastly, make sure the Simulation box is not checked, and press OK from the right hand menu.
If any errors occur, X3 will produce a log file detailing what needs resolved before the year can be closed. If there are no errors, the file will list all of the entries made and close out the year. Adjustments can no longer be made to this fiscal year.
X3 offers two choices for closing a year: Year End Simulation, which creates opening balances without formally closing the previous year, and Fiscal Year Closing, which formally closes a fiscal year. In this post we’re going to walk through a year-end simulation.
A year end simulation is similar to closing a fiscal year in that it calculates the closing balances of a given fiscal year, which then become the opening balances of the next. The difference is that a year end simulation does not create journal entries, and it does not close the year. Because of this, year end simulation is useful for confirming that closing balances are correct, it and can also be used to open a new fiscal year without closing the previous.
To perform a year end simulation, navigate to Financials > Utilities > Closing > Year end simulation
By default, the simulation will run for the current year(It assumes you are running this function in the year you need to calculate opening balances) and for all companies. If you don’t wish to run this for all companies, uncheck the ‘All companies’ box and define a company in the ‘Company’ field. You will also have to define the fiscal year in the ‘Fiscal year’ field.
Click OK to run the simulation!
When the simulation is complete, X3 will have populated the opening balances and generated a log file. The log file may contain errors that need addressed and will detail the balance of each account which can be used to confirm it’s correct.
If corrections need to me made they can since the year has not been formally closed. The simulation can be run as many times as needed.
Check back next time when we’ll walk through closing a fiscal year!
We’ve collected a list of 3 of the top accounting issue we see in X3.
Period needs to be closed
Periods in your X3 system need to be closed to ensure past balances aren’t affected and it’s a good organizational practice. If you are making entries to a reopened period navigate to the Periods function under Common Data> General Accounting tables and close your period here.
Otherwise, if no new entries were made, navigate to Period Closing under Financials> Utilities> Closing and close your period here.
2. Accounting Tasks
If you receive errors while closing a period or year, but are certain all entries have been posted and validated, make sure that Accounting Tasks is running. Navigate to Usage > batch Server > Accounting Tasks. If the status on the line is not ‘Active’, and journals are on hold, press Run now and try closing the period again.
3. Missing Opening Balances
If you have simulated but not closed a year end, and have later then utilized one of the resynchronizations under Financials > Utilities > Resynchronizations, you may find that your opening balances in X3 seem to have disappeared. This is due to the fact that simulations do not create actual journal entries – a resynch can reset this data. To bring your opening balances back, simply run another year-end simulation.
To finalize the opening balances, run the standard year end closing processes
Welcome to the final instalment in our month end mini-series! In this post we’ll walk through the final step for all of the validations and checks you’ve previously completed – the final validation.
All Journals including other modules with a Final/Actual Status
This function changes all of the entries from ‘Temporary’ to ‘Final’ or ‘Actual’
Navigate to Financials > Current processes> Final validation (CPTVAL)
Ensure all check boxes are marked
Choose a valid date range
The is the last step in your validations and check. If the previous steps have all run successfully, you are now ready to close your period!
To do this, lets start by navigating to Common Data > General Accounting Tables > Periods
If there is more than one company, ensure you are on the correct set of period records. You can choose companies from the left side of the screen
Use the carrot on the left side to expand and see fiscal years. Choose the fiscal year the period you need to close is in
Once on the correct set of periods, click the ‘Closing’ button on the right hand menu
This will bring up a screen where you can check the Y/N box for every period you want to close(up to 20). Ideally you should be closing each period at its end so you should only need to do one at a time.
Lastly, click ok! This will generate a log file indicating either that the period(s) have successfully closed, or printing a list of outstanding transactions that need processed first.
Check back for the next post where we look at the top most common issues people see while trying to close periods and how to resolve them!