General Ledger Year End Processing
Closing the Year
Closing out the fiscal year is very similar to closing out the month, with the exception that
you will also be closing the General Ledger Year after you have closed the month. You only
need to close the General Ledger Year at the end of your fiscal year. When you close the
year, the system will:
 Carry the balances for all Balance Sheet accounts over into the new year.
 Enter a zero balance for all Income Statement accounts to begin accumulating again
in the new year.
 Post the Net Income for the year to the Retained Earnings Account, as specified in
your G/L Control Table.
Keep in mind that before you close your fiscal year you need to complete the End of Month
processing for your last fiscal month.
Closing the General Ledger Year
After you have completed the End of Month procedure for the last month of your fiscal
year and provided your accountant with his/her requested reports, there are two
options for closing the General Ledger Year.
The typical process for closing the General Ledger Year is as follows:
Option 1:
 Complete the End of Month procedure for the last month of your fiscal year
 Provide your accountant with his/her requested End of Month/Year reports
(these will vary based on company and accountant)*
 Post the yearly ending journal entries as specified by your accountant
 Perform the G/L Fiscal Year Close
*you will not be able to view current year G/L balances until the End of Year Close is performed
Option 2:
 Process the end of month procedure for the last month of your fiscal year
 Provide your accountant with his/her requested End of Month/Year reports
(these will vary based on company and accountant)
 Perform the G/L Fiscal Year Close**
 Re-open the previous G/L fiscal year when yearly ending journal entries are
completed and returned by your accountant
 Post the yearly ending journal entries into the previous fiscal year
 Perform the G/L Fiscal Year Close***
**current year G/L balances will not reflect yearly ending journal entries
***the system will recalculate the current year G/L balances
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General Ledger Year End Processing
To Close the G/L Fiscal Year:
1. Select Accounting > General Ledger > General Ledger Year End Close.
2. A window will pop up asking if you are sure you want to close the year. Click the Yes
button in this window. This will close the year.
To Re-open the Previous G/L Fiscal Year:
1. Select Accounting > General Ledger > Re-Open Previous Fiscal Year.
2. A window will pop up asking if you are sure you want to re-open the year. Click the Yes
button in this window. This will re-open the year and allow you to make any necessary
journal entries. Once you have made these entries, you need to close the year again.
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General Ledger Year End Processing
Troubleshooting
I created my own Branch-Specific Income Statements and they don't total to match my Consolidated Income
Statement
This is most likely due to the fact that one of your branch G/L Accounts is either not linked to a G/L Group,
is linked to the incorrect G/L Group, or a G/L Group was not included in one of your Income Statements.
First, look at each Income Statement report in the Financial Reports screen to be sure that they contain
the same groups for each branch. Once you have verified that they contain the same branch-specific
groups, run a report to verify that each G/L Account is linked a G/L Group (use the Report button in the
G/L Account screen). Identify the account that is not linked correctly, assign it to a group, and re-run your
reports.
My Balance Sheet is blank
You have not closed your General Ledger Year. Your Balance Sheet will not display account information
until you close the year and the balances are carried over. If you are waiting for your accountant to notify
you of the necessary journal entries, you can close the year now and then re-open it to post the journal
entries at a later time.
My G/L is out of balance in the G/L Inquiry screen
If the G/L Totals in your G/L Inquiry screen are out of balance, first try re-indexing the General Ledger. If
this does not bring the ledger into balance, the issue may require a Professional Services consultation to
resolve. Contact Customer Care for assistance (phone: 203-364-1200 email: support@ddisys.com).
My A/P (A/R) General Ledger Balance doesn't match my A/P (A/R) Aging Report
If your opening balances did not match originally, the reports will never match from that point on. This
may require you to make several journal entries in order to reconcile the accounts.
It is also possible that a Journal Entry was incorrectly posted. There should not be any Journal Entries in
the Accounts Payable or Accounts Receivable accounts. Use the G/L Inquiry screen to identify and correct
the erroneous posting.
My Inventory G/L doesn't match my Inventory Value Report
If your opening balances did not match originally, the reports will never match from that point on. This
may require you to make several journal entries in order to reconcile the accounts.
The formula for reconciling your Inventory G/L to your IVR is:
G/L Inventory + Un-invoiced POs – Un-invoiced Drop Ship POs = IVR – Negative Inventory
To account for the value of un-invoiced POs, you can make a monthly Accrual Journal Entry. Debit the
Inventory Asset G/L and credit an Accrued Inventory or Accrued Purchases account. Accrual entries will
automatically reverse the following month, so that these values are not doubled when the A/P invoice is
received. Identify the value of your un-invoiced POs by running the Un-invoiced PO Report from the
Purchasing Menu or by checking off Reconciliation Summary when running your monthly Inventory Value
Report.
When you run your IVR, verify that:
 you are using the same cost column that you use as your G/L cost. You can check to see the cost
that you are using in the Company Master, under the Pricing/Costing tab. Look for the "Sales
Invoice G/L Cost" field. If you are using average cost, you should be using the C2 cost field when
you run your IVR. If you are using the Salesman cost, you should be using C4, C6, or C7
(whichever cost is designated as the Salesman cost) in your IVR.
 there are no values in the Drop Ship or Returned Goods warehouses.
 there are no journal entries posted to the Inventory G/L Account.
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General Ledger Year End Processing
A discrepancy may also exist due to:
 manual changes made to the C2 Average Cost.
 adjusting PO Stock Receipts costs retroactively, where sales or other inventory affecting
transactions may have already occurred. Minimize the potential for this situation by requiring
pricing confirmation on your Purchase Orders.
 the selling of SP items. These items will post to the Non-inventory G/L Account set in your G/L
Control Table.
 changing the status of an item to “Consumable” with a quantity On Hand not equal to zero.
 voided sales invoices (if you are updating your GL with the Average cost). Sales invoices should
only be voided one or two days after the invoice is posted, to minimize that chance that the
average cost will have changed. Sales invoices older than 2 days should not be voided and should
be processed as a return.
 selling items before the A/P Invoice is able to update the C2 Average Cost. Run the Average Cost
Variance Report to identify items that were sold at an Average Cost that was changed by a
pending A/P Invoice.
 a balance in the Non-inventory G/L Account set in your G/L Control Table. Transactions will post
to this account when they are set to affect the default Inventory account without a
corresponding increase to the actual Inventory Value.
For example, when a consumable item is sold, it doesn’t actually decrease the value of your
inventory so it will post to this account. When an A/P Invoice is entered and posted to the
inventory account, but not linked to a Stock Receipt it will also post to this account.
Transactions posted to this account should be reviewed and moved to the appropriate account
using a Journal Entry.
On my Balance Sheet, Assets does not equal Total Liabilities plus Total Equity
One of your Balance Sheet G/L Accounts (any account with a number less than the P & L Break Account),
may not be linked to a G/L Group. When you print the Balance Sheet, you should receive a warning
message notifying you which account is not linked. To link the account, open the account in the G/L
Account screen, click the Edit button, enter the appropriate G/L Group, then click the Save button.
The Net Income on my Balance Sheet doesn't match the P&L on my Trial Balance
If the Trial Balance and Income Statement match, but the Balance Sheet does not, check your Income
Summary G/L Group to be sure that it includes all of the necessary accounts. It should include every
Income Statement account (every account with a number higher than the P & L Break Account). If the
group is blank, a Customer Care representative can run a program to add all of the necessary accounts to
the group.
The Net Income on my Income Statement doesn't match the P&L on my Trial Balance
If the Income Statement does not match the Trial Balance, check to verify that all of your Income
Statement G/L Accounts (every account with a number higher than the P & L Break Account) are included
in the Income Statement report.