The following is a checklist
of steps to close your current year and prepare the system for the new
year. If you need detailed instructions on any of the steps below,
please contact us at 901-382-1634.
Closing a year transfers all summarized current-year Quantity, Cost and
Sales amounts to transaction history for the Items for which you've been
keeping summarized Sales History. This procedure also updates each
Item's Beginning Quantity to the Quantity on Hand at each Site. The
year-end close must be done before any transactions are posted to the
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1) Post all transactions for the year.
2) Reconcile Inventory quantities.
3) Complete a Physical Inventory count and post any adjustments.
4) Print any additional reports
you'll need for planning or for your permanent records.
5) Make a backup of all Company data. (Go to
File | Backup).
6) Close the year.
7) Close the fiscal periods for the
Inventory Series (optional).
8) Make a final backup.
How is the Average Cost of an Item updated throughout the year and
during the year-end closing process when using the Average Perpetual
Method of Costing?
If you're using the Average Perpetual Costing Method, all Receipts for
each Item will be averaged to determine the Average Cost. Even if
Quantities are sold, the Average doesn't change until another Purchase
Receipt for the Item is posted to the Inventory Purchase Receipts File.
The year-end closing process doesn't change the Average Cost, but it
will remove the Purchase Receipts that have been completely sold. The
next time a Receipt is entered, the Average Cost will be revalued with
the Receipts that remain in the Inventory Purchase Receipts File.
2: Can the Inventory Year-End Closing window (Routines | Inventory |
Year-End Close) be used throughout the year to update the standard Cost
of Items if using the Periodic Valuation Method?
This is not recommended because the Beginning Quantity field is updated
during the year-end closing process. This would make that field
incorrect on reports such as the Turnover Report.