Year End Automation

[Nathan Gray]

I'm doing up some automatic year end stuff, and I'd like some  
confirmation against some other nations, to make sure pERP doesn't  
violate anyone's laws (including Canada).

What has been requested:
1.  After the fiscal year end date, any invoice posted for goods  
received in the previous fiscal year should be posted as at the fiscal  
year end date, but the date on the invoice should be unchanged.  I  
suppose services received might be covered as well, but pERP can't  
detect that, so they would have to be manually corrected.

After a certain, variable period of time (maybe up to a month or two),  
an accountant can begin the year end procedure.
2.  pERP checks for a year end inventory count (if you use inventory)  
and suggests maybe you should do one if you haven't
3.  pERP checks for a year end bank reconciliation, and suggests maybe  
you should do one if you haven't
4.  pERP creates and posts a Journal Entry that moves the balance of  
all Revenue & Expense accounts to a single GL account, Retained Earnings
5.  The General Ledger is locked, and no posting is allowed prior to  
the year end date, except for accountant / auditors with extra admin  
permissions.

After this point, everything is sent off the external accountants /  
auditors, who analyze and come back with any corrections that need to  
be made.  These corrections are made by a user with the extra admin  
permissions mentioned above.

Does that sound reasonable?
Anything to add?
Anything that needs to be made optional or removed?

Nathan Gray
nathan at goarctic dot com


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[xony]

Hi Nathan,
First version of french translation is finished...
I'll give you the files as soon as possible.

Here the french ledger questions.

Nathan Gray a écrit :
> I'm doing up some automatic year end stuff, and I'd like some  
> confirmation against some other nations, to make sure pERP doesn't  
> violate anyone's laws (including Canada).
>
> What has been requested:
> 1.  After the fiscal year end date, any invoice posted for goods  
> received in the previous fiscal year should be posted as at the fiscal  
> year end date, but the date on the invoice should be unchanged.  I  
> suppose services received might be covered as well, but pERP can't  
> detect that, so they would have to be manually corrected.

In french ledger, the invoice is posted on the date the document is made (customer invoice),
or at the date the document is received (supplier invoice).
But the yearly result must include all that is rattached to the fiscal period.
(the fiscal year  period can be different as a january-december year):
They are two accounts "charges à payer" et "produits à recevoir" ("accrued liabilities" and  "accrued income")
in wich the operations are posted (products or services are delivered but the invoice isn't etablished).
The next fiscal year, you must reverse the accounting entry when you receive or etablish the invoice.

> After a certain, variable period of time (maybe up to a month or two),  
> an accountant can begin the year end procedure.
Can be more than two months...

Months are closed provisory, month after month, journal by journal, and there is a definitively  year end procedure, after making the year end operations :
Accrued liabilities and  accrued income
Depreciation and provisions
Inventory variation
Income and expenses recorded in advance
Disposals of fixed assets ("immobilisations") and cession of stocks ("Valeurs Mobilières de Placement")

> 2.  pERP checks for a year end inventory count (if you use inventory)  
> and suggests maybe you should do one if you haven't

Inventory variation is an year end operation

> 3.  pERP checks for a year end bank reconciliation, and suggests maybe  
> you should do one if you haven't

bank reconciliation is done month after month, operation after operation when you do the daily accounting

> 4.  pERP creates and posts a Journal Entry that moves the balance of  
> all Revenue & Expense accounts to a single GL account, Retained Earnings
> 5.  The General Ledger is locked, and no posting is allowed prior to  
> the year end date, except for accountant / auditors with extra admin  
> permissions.

There is a journal called "Bilan d'ouverture" or "Reports à Nouveau" created by the year end procedure
 in wich all accounts are automaticly reversed for the balance of each account
and the result goes in a result account.

>
> After this point, everything is sent off the external accountants /  
> auditors, who analyze and come back with any corrections that need to  
> be made.  These corrections are made by a user with the extra admin  
> permissions mentioned above.

The correction and the year end operation are posted in a special journal and it's before the year end procedure.
Before the year end procedure, you have two years opened. And after it, you can't touch anything in the closed year.
Each account (and the non balanced operation history) are reversed by the result account and they appear  in the new year, in a opening journal...

>
> Does that sound reasonable?
> Anything to add?
> Anything that needs to be made optional or removed?
>
> Nathan Gray
> nathan at goarctic dot com
>

There are three types report of year end

Yearly general balance, supplier balance, customer balance.

They're regroupement of the accounts in sections in the "Bilan" and the "Compte de Résultat ".
(Balance sheet and income sheet)

Le "Grand Livre" :
Yearly detailled operations, account by account, operation after operation, general account
Yearly detailled operations, account by account, operation after operation, customer account
Yearly detailled operations, account by account, operation after operation, supplier account

I'll post you as soon as possible a french example with the real french accounts.

a+

[Nathan Gray]

On 14-Jun-09, at 6:00 AM, xony wrote:

>
> Hi Nathan,
> First version of french translation is finished...
> I'll give you the files as soon as possible.
>
> Here the french ledger questions.
>
> Nathan Gray a écrit :
>> I'm doing up some automatic year end stuff, and I'd like some
>> confirmation against some other nations, to make sure pERP doesn't
>> violate anyone's laws (including Canada).
>>
>> What has been requested:
>> 1.  After the fiscal year end date, any invoice posted for goods
>> received in the previous fiscal year should be posted as at the  
>> fiscal
>> year end date, but the date on the invoice should be unchanged.  I
>> suppose services received might be covered as well, but pERP can't
>> detect that, so they would have to be manually corrected.
>
> In french ledger, the invoice is posted on the date the document is  
> made...
> They are two accounts "charges à payer" et "produits à  
> recevoir" ("accrued
> liabilities" and  "accrued income")
> in wich the operations are posted (products or services are  
> delivered but
> the invoice isn't etablished).

Are these different from the normal GL accounts (Accounts Payable &  
Accounts Receivable)?

> The next fiscal year, you must reverse the accounting entry when you  
> receive
> or etablish the invoice.

What are the mechanics of this?  Is this something that can be  
automatically entered?


>> 3.  pERP checks for a year end bank reconciliation, and suggests  
>> maybe
>> you should do one if you haven't
>
> bank reconciliation is done month after month, operation after  
> operation
> when you do the daily accounting

Really?  We do month by month, because the bank sends a statement of  
transactions monthly.
Does your bank provide you with real-time electronic records for you  
to reconcile against?

>> 4.  pERP creates and posts a Journal Entry that moves the balance of
>> all Revenue & Expense accounts to a single GL account, Retained  
>> Earnings
>> 5.  The General Ledger is locked, and no posting is allowed prior to
>> the year end date, except for accountant / auditors with extra admin
>> permissions.
>
> There is a journal called "Bilan d'ouverture" or "Reports à Nouveau"  
> created
> by the year end procedure
> in wich all accounts are automaticly reversed for the balance of each
> account
> and the result goes in a result account.

ALL General Ledger accounts?  What happens to outstanding amounts?


> I'll post you as soon as possible a french example with the real  
> french
> accounts.

Thank you for your help.

Nathan Gray
nathan at goarctic dot com


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[Nathan Gray]

On 14-Jun-09, at 6:00 AM, xony wrote:

>> ...
>> After this point, everything is sent off the external accountants /
>> auditors, who analyze and come back with any corrections that need to
>> be made.  These corrections are made by a user with the extra admin
>> permissions mentioned above.
>
> The correction and the year end operation are posted in a special  
> journal
> and it's before the year end procedure.
> Before the year end procedure, you have two years opened. And after  
> it, you
> can't touch anything in the closed year.

What is the procedure for correcting errors?
For example, incorrectly valued inventory.

Nathan Gray
nathan at goarctic dot com


------------------------------------------------------------------------------
Crystal Reports - New Free Runtime and 30 Day Trial
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royalty-free distribution of the report engine for externally facing
server and web deployment.
http://p.sf.net/sfu/businessobjects
_______________________________________________
Perp-developers mailing list
Perp-developers@...
https://lists.sourceforge.net/lists/listinfo/perp-developers

[xony]

>> In french ledger, the invoice is posted on the date the document is made...
>> They are two accounts "charges à payer" et "produits à recevoir" ("accrued
>> liabilities" and  "accrued income")
>> in wich the operations are posted (products or services are delivered but
>> the invoice isn't etablished).
>
> Are these different from the normal GL accounts (Accounts Payable & Accounts Receivable)?
No.
 
It's the same account with a 8 in third or fourth position
401 Supplier
408 Supplier Invoice not send  

445 Fiscal TVA Taxe
4458 Fiscal TVA Taxe to be regularised

In French Ledger you have account 1xxxxxxx  Capital accounts, 2xxxxxx Immobilisations (like cars, constructions) (and 28xxxxx amortissements and 29xxxxx provisions - 8 or 9 in second position is a diminution)
3xxxxxxx stocks (inventory depreciation 39) 401xxxxxx Suppliers 41xxxxxx Custommer 44 Fiscal Adminstrations 512 Banks 530  Cash

and
  6xxxxxxx expenses and 7xxxxxxx income (the number of digit x are variable from one activity to another 5-7-9...)

>
>> The next fiscal year, you must reverse the accounting entry when you receive
>> or etablish the invoice.
>
> What are the mechanics of this?  Is this something that can be automatically entered?


No it's a manual operation


>
>
>>> 3.  pERP checks for a year end bank reconciliation, and suggests maybe
>>> you should do one if you haven't
>>
>> bank reconciliation is done month after month, operation after operation
>> when you do the daily accounting
>
> Really?  We do month by month, because the bank sends a statement of transactions monthly.
> Does your bank provide you with real-time electronic records for you to reconcile against?

It's depends if you're a small  or a big bussiness, yes. It depends wich are your banks. Statement are send as you want, or as the bank wants.

>
>>> 4.  pERP creates and posts a Journal Entry that moves the balance of
>>> all Revenue & Expense accounts to a single GL account, Retained Earnings
>>> 5.  The General Ledger is locked, and no posting is allowed prior to
>>> the year end date, except for accountant / auditors with extra admin
>>> permissions.
>>
>> There is a journal called "Bilan d'ouverture" or "Reports à Nouveau" created
>> by the year end procedure
>> in wich all accounts are automaticly reversed for the balance of each
>> account
>> and the result goes in a result account.
>
> ALL General Ledger accounts?  What happens to outstanding amounts?

little mistake : not all,  only 6xxxxxxxx expenses and 7xxxxxxxxx income gives the result


The others are writen in the  reported in the journal "Report à Nouveau" for the balance (with the history)
and the result is manualy affected in the "Bilan d'ouverture".


The correction and the year end operation are posted in a special journal
and it's before the year end procedure.
Before the year end procedure, you have two years opened. And after it, you
can't touch anything in the closed year.

What is the procedure for correcting errors?
For example, incorrectly valued inventory.

It's a manual posting in a journal (O. D.) Miscellanous Operations.
Before the year end procedure.
After the year end procedure you can't  (law) access at the past year.
That's the reason why two fiscal years are open some months together..

Sorry for my non perfect english...
I Will make you a real example as soon as possible.
Claude