1. Verify that the correct Year, Period and System Date are set (this should be the new year, period 1, and the correct date based on the actual calendar).
2. Use the Create Beginning Balances program to move the ending balance sheet account balances from the prior accounting year into period 0 of the New year. These balances will be used temporarily while the prior year account balances are being adjusted and closed. Note the journal entry assigned by the system as you will need to reverse it later.
3. Post transactions that affect sub-ledger balances in the prior year to period 1 in the New year. Set the post date field in these transactions with a post date that indicates that the transaction applies to the prior year (typically 12.31.xx for xx year-end). This flags or allows you to identify and report on entries made in the new year that you may wish to post to the prior year.
4. Post transactions that do not affect sub-ledger reports (Journal Entries, Sales Posting) to proper period and year (period 12 xx) with appropriate post dates. Journal entry transactions (Source = JE) and Sales Posting Transactions (Source = SP) will not be included in the accrual journal entry that will be made to adjust sub-ledger account balances in the prior year for transactions posted after year-end.
5. Post transactions that affect sub-ledger balances in the new year to period 1 in the New year. Set the post date field in these transactions to the current date, or a date in the new year.
6. The above steps will allow an accrual journal entry to be made to update the prior year account balances once all transactions for the prior year have been completed.