Running The Fiscal Year End

Before closing the Year End in Sage X3 you'll need to ensure:

All of the periods for the year are closed in status.
Next year exists and is open and at least the first period is open.
General Parameter ENDDAT is populated with a date in the future.
All sales & purchase invoices, payments/receipts etc for that financial year are validated.
Fixed Assets module run and posted all accounting entries and FA module has been closed for the year.
All recurring journal entries have been generated.
All journals for that financial year are set to status ‘Final’.
Carry forward document and journal type are defined – these are used for the opening balance postings (see Appendix 1).
Carry forward and Profit & Loss accounts are defined in (see Appendix 2).
Review Account classes setup screen to ensure that the account classes are correctly configured (see Appendix 3).

The report CLOPER can be run, to help identify any potential problems beforehand.

How to run the fiscal year end in Sage X3

To review the configuration of the next financial year in Sage X3 head into the Common Data > G/L Accounting Tables > Fiscal Years option. Select the Company and Ledger from the left list and click the Fiscal Year button (in the bottom right).

The following screen appears from where you can click OK to confirm the details and set up the next year(s).

Running Fiscal Year End - Screenshot 1

Before closing the year you’ll need to close of all of the periods from within the Common Data > G/L Accounting Tables > Fiscal Periods option. Select the company, ledger and year from the left list and click Close.

The following window pops up where you can select the period(s) to close along with the ledgers to
close it for.

Running Fiscal Year End - Screenshot 2

When closing period 12, the following warning appears.

Running Fiscal Year End - Screenshot 3

Click OK to continue.

If you haven’t ran the CLOPER report and resolved any errors then you’ll be advised that there have been errors and then receive a log file detailing the reason(s) why the period can’t be closed.

In this example there are a number of journals that haven’t been fully validated (status = Temporary).

Running Fiscal Year End - Screenshot 4

Journals can be validated en masse using the option: Financials > Current Processings > Final Validation

If all periods are now closed and the first period in next year is open we’re ready to run the Year End Close process.

This is simply a case of using option Financials > Closing Processings > Fiscal Year End (FIYEND).

Running Fiscal Year End - Screenshot 5

Select the company & ledger/reference along with the document type & journal code to be used for the carry forward postings. There are also document type and journal code fields for closing journals
but closing journals are not generally used in the UK.

Note the Simulation option at the bottom – this process produces a log file with the accounts involved and their carry forward values calculated by the Year End program, without actually performing the year end.

An optional Detailed log file is produced showing the carry forward postings made by the Year End process and detailing any errors.

Check the status of the year is now closed in the Fiscal Years option.

Running Fiscal Year End - Screenshot 6

Appendix 1

Checking/Configuring the carry forward document type and journal code.

Check that the following document type exists or ensure that there is a document type setup that has Period = New. This is done from Parameters > Financials > Document types (GESGTE)

Running Fiscal Year End - Screenshot 7

Check that the NEW journal code exists in Common data > G/L Accounting Tables > General > Journal Codes (GESJOU).

Ensure that Type is set to New Period.

Parameters > General Parameters > Parameter Values

CPT Accounting > Financial Year End.

GTECLO1 must be set to (CLO01)
GTEFRW1 must be set to (NEWX1)

Also check the setup of Automatic journal parameters:

GAUFIYEN (set to FIYEN in out of box setup)
GAUFIYRE (set to FIYRE in out of box setup)

Note: if Closing document is used, then we also need to consider parameter GAUFIYCL

Appendix 2

Chart of Accounts YE Accounts:

Check that the line 4 Carry forward account (ANOUVO) is populated with valid account

This account must be completed by an account from the chart of accounts and it is used in two contexts:

via the year-end processing to balance the carry forward journals:

the FIYEN journal, available by currency and possibly by site, saves the opening balances of the real accounts with the counterpart on this carry-forward account.

the FIYRE journal, possibly available by site, balances the carry-forward account by the profit and loss account

via the consolidated extraction function:

this carry-forward account represents the account for which the accumulated balance of the profit and loss accounts is balanced, said balance being calculated at the end of the period preceding the extraction date. This calculation is carried out if the Earlier Balances option is selected and if the period required crosses over two fiscal years.

check that the line 11 Retained Earnings Account is also populate with valid account

Parameters > Organisational Structure > Charts of Accounts (GESCOA)

Running Fiscal Year End - Screenshot 8

Parameters > Financials > Accounting Interface >Automatic journals

The FIYEN automatic journal, available by currency and possibly by site, saves the opening balances of the real accounts with the counterpart on this carry-forward account.

The FIYRE automatic journal, possibly available by site, balances the carry-forward account by the profit and loss account.

Appendix 3

Checking the C/F flag against the account classes.

Parameters > Financials > Account Classes

The C/Fwd flag determines whether or not to create a carry forward (opening balance) posting into the new year.

Traditionally P&L type accounts would have C/fwd = NO and Balance Sheet accounts would have C/fwd = Yes

Running Fiscal Year End - Screenshot 9

Sage X3

Running the fiscal year end

Before closing the Year End in Sage X3 you'll need to ensure: