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Year End Procedure

Year End Procedure

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Year End Procedure

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The Year End procedure helps to automate what needs to be done at the close of a financial year. After the end of trading on the last day of your financial year and before entering the first transaction in the new financial year you should run the Year End procedure. Evopos will prompt to do this when starting Evopos on the first day of the new financial year.

You can also run the Year End procedure manually by selecting Accounts / Maintenance / Year End.

The Year End procedure does the following:

Updates the current stock quantity and the current stock cost price into the Opening stock quantity and Opening stock cost price fields. This enables a stock list (excluding Units) to be produced for the start of the year (until the Year End is run again or Items are deleted - Could make in-active instead (see below).

Creates a new nominal year for the new financial year (if not created already – a new nominal year is created the first time a transaction is entered for that year)

Updates the calculated closing balance for the old year into the opening balance field for the new year (this can be manually changed later)

One of the most important aspects of the Year End is to make sure we have an accurate record the stock cost values. Some users like to do a stock take shortly before the year end to ensure the stock figures are most up to date, others check the stock in Categories or Locations in a rolling basis throughout the year. Please see section on Stock Count for more details.

In any event it is worth having a quick look over the stock reports to try and spot any obvious errors. Things to look for include excessively large number in Stock Qty (often caused by entering a part number in a qty field), negative qtys (often caused when a non-stock part is set to Maintain Qtys). If you have a large number of stock items it is sometimes easier to list by Category first and see when a value for a category seems too high or low, you can normally double click on a category line to show (drill down to) the individual items.

It is also advisable to take a backup at the end of the last day of the financial year and keep it separately so it does not get over-written.

Many users like to have a printed reports and keep in a central Accounting file (see also Accounting Book section)

 

List of your current parts and accessory stock (excluding Units) - Selecting Items / Quick Reports / Stock by Group-Cat-Items (Excl Units). Note: This report is only current for that moment in time so must be done at . Alternatively you can produce an opening stock report after running the Year End procedure that takes the figures updated above, you can produce this report in Items / Quick Reports / Year Opening stock by Group, Category, Items. This can be produced at any time until these fields are updated again.

List of your Units in stock - Selecting Items / Units / Quick Reports / Stock – Costs. You would normally produce one report for Used, one for New and one for Consignment. Consignment is for Units you do not own eg: selling for some-one or on a Floor Plan. You can produce these reports for any date.

The other thing we need to do is to note the closing balances for balance Accounts such as the Cash / Cheques In-Hand and Bank Accounts etc. so we can confirm the Opening balances for the new financial year.


Nominal Balances

Although the Year End procedure will copy the closing balances in the old year to the opening balances in the new year, these balances will normally need to be checked by reconciling the accounts (See Reconciling section). You will need to manually update if entering transactions into the old year which is quite a common thing. To edit an opening balance select Accounts / Nominal, select the appropriate Nominal account and select edit to edit it.

Note: If banking money taken in the old year into the new year that amount should be in the closing balance of the old year and the opening balance of the new year. Some users prefer to bank the money into the same year so the In-Hand balance accounts are zero.

Note: Each year is independent so you can keep the current year correct and errors or changes to the previous year will not affect it.