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 new year.
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- Post all transactions for the year.
- Reconcile Inventory quantities.
- Complete a Physical Inventory count and post any adjustments.
- Print any additional reports you’ll need for planning or for your permanent records.
- Make a backup of all Company data. (Go to File | Backup).
- Close the year.
- Close the fiscal periods for the Inventory Series (optional).
- Make a final backup.
1: 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.
Next Step: Receivables