Year-end: Closing a Fiscal Year

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.

Example of an error log

Common Accounting Issues In X3

We’ve collected a list of 3 of the top accounting issue we see in X3.

  1. 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