End of Year Operational Procedures

The procedures listed in this section must be performed in a timely fashion at the end of each year.  These required procedures perform the following functions.  They prevent transactions from being posted to incorrect periods, they provide the reports that will be required in order to close the General Ledger period and or year, and they allow users to begin processing in the next period.  These procedures should be completed on the last day of each year before any transactions are posted to the next year.

1.  Perform all of the steps listed under End of Period Procedures

2.  Print any other reports that may be required as backup for the end of year general ledger balances (i.e. AP Aging, Vendor History, and AP Account Journal).

3.  Determine which of the vendors will require 1099 forms (if a label field in the company file is used to flag 1099 vendors, the query program or one of the Name and Address reports can be used to get a list of the vendors who may require them) and run AP Vendor History reports for these vendors, selecting to output the journal entry detail associated with each invoice.  Also note for each vendor which invoices remain unpaid at the end of the year since this information will be required in order to properly fill out the 1099 forms.

4.  Run Utility programs to reset year to date statistics - Reset the AP "Bucket" in the Customer Master file.  Each vendor record in the Customer Master file includes an AP YTD field which stores the amount of the invoices that have been entered during the current year for each vendor.  This bucket should be reset at the end of the year so that the field stores the correct year to date amount.  Select the appropriate program from the Audit Menu and run it (the system administrator may have to run the program since it is located on the System Maintenance Menu).

5.  Purge Paid AP Invoices from the system (optional) - This is an optional procedure that may be performed when necessary.  The procedure allows the operator to purge paid AP register records from the system.  Since the system will allow the user to keep many years worth of AP data on line at any one time, the primary reason for performing the procedure is to free up the disk space on which the records are stored.  NOTE: This procedure deletes records from the system.  This procedure should never be performed on current year data or on any data from a prior period that has not been closed.  Once this procedure is run, the operator will not be able to access these records at all.  Therefore, no records should be deleted (even from prior closed years) until the operator is sure that all required reports for the period have been produced and that a complete backup of the AP files has been made.

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Accounts Payable Reference Information