1. Financials Year-End Processing
Paul Sterzinger
Senior Business Analyst
Lawson R&D

2. Accounts Payable
AP195 – Period Closing is run to insure all transactions have been processed and interfaced to the general ledger.
After the last period is closed for the fiscal year, run AP199 – Vendor Balance Year End
Updates the new year period end dates on the vendor group.
Transfers the current year vendor balances to last year.

3. Accounts Payable Archiving/Purging Vendor Invoices
Archiving invoices is used to speed up batch and on-line performance (AP198).
Moves historical invoice, distribution and payment records to archive files.
May be used instead of purging
You can inquire and or report on archived invoices.
Purged invoices permanently deletes records and archives them to a csv file (AP300).

4. Asset Management
Make sure you are finished adding, adjusting, transferring and disposing of asset records.
Release transactions using AM170.
Determine if the 40% tax rule applies to the depreciation calculations.
This rule requires that if 40% or more of all assets are placed into service in the last fiscal quarter, special depreciation calculations apply

5. Asset Management 40% tax rule determination.
Run AM220 to list assets added during the past year.
Run the AM220 again for assets added during the last quarter.
Compare the reports to determine if 40% of the assets placed in service during the year were placed in the last quarter.

6. Asset Management
If the 40% rule applies, adjust the depreciation conventions for the assets that were placed in service during the fourth quarter of the year.
Run AM125 – Mass Adjustments. On the Asset Book Adjustment tab change the convention code to MQ (Mid Quarter)
Update the changes made in AM125 by running AP170 – Processing Release

7. Asset Management Continue running the normal period close process.
Run AP180 - Depreciation Calculation.
Run system reports and verify asset information.
Once satisfied that the reports and assets are correct post and close the period by running AM190 - Period Close.
Running AM190 with the release parameter set to yes is irreversible.

8. Asset Management Run year end reports. Addition Report AM220
Adjustment Report AM225
Transfer Report AM230
Disposal Report AM240
Projection report AM255
Asset Report AM260
Property Report AM265
Account Balance Report AM270
Current Year Deprecation Report AM280
Book Comparison Report AM285
Tax Credit Report AM290
Recapture Report AM292
FASB Reconciliation Report AM295

9. Asset Management
Make sure you have run all reports. You can not run them once year end is processed.
Note: If you have depreciation history enabled for the books you can use AM281 – Depreciation History Report to report on previous year depreciation history
Back up the data.
Run AM195 – Year End Close to close out the year.
Verify the year end was successful by opening AM01.1 – Calendar and inquiring on the company and book.

10. Activities There are no mandatory procedures for year end processing.
Optional - run AC195-System Control to close activities on a monthly basis.
Closing the activities allows the users control over transactions for balancing purposes.
Most clients do not close activities because there is no back posting functionality

11. Accounts Receivable
AR199 – Period Closing Report is also used for year end processing.
The AR199 is run with the year end parameter set to “Y”.
In addition to normal period end processing the AR199 will rolls the following balances from current year to last year.
Period Billed, Chargebacks, Credits, Write-offs and Paid
Moves any value for the next year to the first period.
Moves the year-to-date Invoice Payment Average (IPA) and Days Beyond Terms (DBT) totals to last year to update customer statistics.
The AR199 should prompt you to run the year end option for the last period
Do NOT run the AR199 twice .

12. Lawson General Ledger Year-End Procedures
In this presentation, we will review the fundamentals of GL year-end closing.

13. Year-End Process Flow Backup Lawson Data Verify Fin.
Stmts. for LY (2004)
Run GL291, GL292
& GL293
Final Close all
periods of LY (2004)
Run GL190 to post
all entries
Run GL199 with
Final Status
In this presentation, you see several year-end process flow diagrams. For purposes of this presentation, the year-end closing steps are covered in groups. An optional step in a process flow diagram is noted by a dotted-line. A required step is noted by a solid line.
Following a brief overview of the steps within a process flow diagram, we will view the screens related to the steps and talk about the steps in more detail.
Prior to beginning year-end processing, we recommend that you make a complete backup of your Lawson data.
Then, you should verify your financial statements for the last year. If you haven’t previously closed the periods in the last year with a “Final” close status, you will need to do that before you can close the current year. Since you can’t make adjustments to periods with a “Final” close status, you should verify the financial statements prior to “final” closing the periods in the last year.
Then, close all of the periods in the last year with a “Final” close status.
If you are using closing control for your subsystems, you must close them prior to closing General Ledger.
Verify all subsystems
are closed in CY (2005)
Required if using
closing control

14. Verify Fin Statements for Last Year (2004)
Produce standard reports, such as the income statement, balance sheet or trial balance; or customized Report Writer reports to verify the balance in the last year prior to “final” closing the last year.
Here is an example of the Trial Balance screen using the Lawson Portal. If you are using report currency, you should print a copy of this report for each report currency, as well as the base currency of the company.
Verify totals
Verify company is in balance

15. Final Close All Periods of Last Year (2004)
After you have verified the financial statements for last year and recorded any necessary adjustments, you are ready to close the periods in the last year with a status of “Final” close. All periods in the last year must be “final” closed before you can close the current year.
May want to verify year-end fin statements after running this

16. Verify Subsystems are Closed in Current Year (2005)
If you are using closing control for your subsystems, you will have to close them prior to closing General Ledger. There is a quick way to check the closing status of the subsystems.
Right-click on the Company field on any General Ledger screen, then select the Status of Subsystems option. This will display the closing status of each of the subsystems.
Access from Drill around on Company field
Interface subsystem entries, then close subsystems

17. Year-End Process Flow Yes No Run Currency Revaluation (GL191) Yes
Are you using Currency Exchange?
Yes No
Run Currency
Revaluation (GL191)
Run AP191 and AR196,
if applicable
Are you using Currency Translation?
Do you have customers and vendors in different countries? If so, you are probably using currency exchange. Clients who use currency exchange typically run Currency Revaluation at the end of each period and the end of the year to revalue outstanding transactions based on current exchange rates.
Do you have offices or locations in different countries? If so, you are probably using currency translation. If you are using Currency translation, you should run Translation Calculation (GL195) or Report Currency Translation (GL196) at the end of each period and the end of the year.
Yes
Run GL195 or
GL196 to translate
multiple CUs
into a common CU No

18. Year-End Process Flow
Do you store statistical amounts/units in Budgeting?
Yes
Roll statistical or historical budgets forward one year using FB120 No
Budgeting is primarily used to hold General Ledger budgets and forecasts. But some clients also use Budgeting as a “database”, to store statistical or historical amounts or units. These amounts or units can be printed on Report Writer reports or used in formulas within compute statements.
If you store historical or statistical amounts in a budget, you may want to move these “budgets” to the current year. This will save maintenance on formulas that you have within your compute statements and Report Writer reports that you have created.
Then, backup your data prior to closing the current year.
Backup Lawson Data

19. Roll Statistical/Historical Budgets Forward
If you want to move statistical or historical budgets to the current year, use Intracompany Mass Budgeting (FB120) to move the budgets from one year…
Roll statistical or historical budgets ahead one year so RW reports don’t need to be modified

20. Roll Statistical/Historical Budgets Forward
to the next year.

21. Year-End Process Flow Verify Year-End Fin. Stmts. for CY (2005)
GL291, GL292 & GL293
Review period end dates
for NY (2006)
GL10.1
Close last period
of the current year
GL199-Limited status
Now, we are ready to begin the year-end closing process for the current year.
Prior to closing the year, you may want to verify your year-end trial balance, income statement, balance sheet and any customized financial statements you have created in Report Writer.
Prior to entering transactions for the next year, you should review the period ending dates for the next year in Company (GL10.1).
After verifying the year-end balances, you are ready to close the year. You close the year by closing the last period of the year. There isn’t a separate program for year-end closing.
After you have closed the year, you may want to verify your financial statements for period one in the current year.
Verify Fin. Stmts.
for pd. 1, CY (2006)

22. Verify Year-End Fin Statements for Current Year (2005)
Before you close the current year, you may want to produce standard reports, such as the income statement, balance sheet or trial balance, or customized Report Writer reports to verify the balances in the current year. If you are using report currency, you should print a copy of the financial statements for each report currency, as well as the base currency of the company.
Verify totals
Verify company is in balance

23. Review Period Ending Dates
Prior to entering transactions for the next year, you should review the period ending dates for the next year in Company (GL10.1) and make any necessary changes. You can’t change period end dates once transactions exist in a period. This step is especially important for clients on a fiscal year.

24. Close Last Period of Current Year (2005)
Closes the last period and the year
Rolls account balances forward
Current year last year
Next year current year
Creates consolidation records for next year
Calculates beg. balance for all BS accounts for next year
Creates a closing entry with a status of history in period 99
Undistributed RE RE
When you close the last period of the year, you close the period and the year.
Account balances that were stored in the current year are moved to the last year.
Account balances that were stored in the next year are moved to the current year.
Account balances that were stored in the last year are moved to the previous year.
The system also creates new records, which hold a summary of your account balances, in the GLCONSOL file.
The system calculates beginning balances in the new year for all of the balance sheet accounts (all accounts with a chart section of 1).
The system also calculates period-end dates for next year for the General Ledger calendar.
To record the net income or loss for the year, the system creates a closing entry in period 99 with a status of History. This entry closes the undistributed retained earnings account balance into the retained earnings account balance.

25. Close Year - Consolidation Company
Doesn’t auto-reverse entry in next period
Reverses out balance sheet account balances in period 1
Prepares system for translation in new year
Remember, when you run Translation Calculation (GL195), the system creates a released entry in the consolidation company. Typically, the system translates the year-to-date balances for balance sheet accounts and auto-reverses the entry in the next period when Period Closing (GL199) is run in the consolidation company. This process differs if you are closing the last period of the year.
If you are closing a consolidation company for the last period of the year, the translation entry for the balance sheet accounts is not reversed. Instead, the system creates an entry in period 1 in the next year to reverse out all balance sheet account balances. This prepares the year so that you can begin translation again to this consolidation company.

26. Year-End Closing Entry
You can display the year-end closing entry on Journal Control, Journal Analysis or Transaction Analysis.
The closing process doesn’t delete the balances in the income statement accounts, so they are available for reporting purposes after you have closed the year. It transfers the balance for undistributed retained earnings to retained earnings. The undistributed retained earnings account accumulates the net income or net loss every time you post a journal entry.
Also, notice that the entry is posted to period 99 and it is created as a historical entry, so it can’t be backed out or edited.
Use Journal Control (GL45), Journal Analysis (GL41) or Trans. Analysis (GL90) to display year-end closing entry

27. Processing in NY before Closing CY
Select the Closing Option of Next Yr Beg Bal on Period Closing (GL199) to update beginning balances in the next year, prior to closing the current year.
Select Next Yr Beg Bal prior to closing year to calc beg balances for the next year

28. Processing in NY before Closing CY
Use the Next Year Beg Bal option to bring adjustments forward from the current year to the next year, prior to closing the current year.
If you have multiple sets of adjustments that you want to bring forward to the current year, use this option each time you have a set of adjustments that you want to reflect in the beginning balances for the year.
Use to bring adjustments from CY to NY prior to closing year
Can run multiple times for multiple batches of adjustments

29. Verify Fin Statements for Period 1 (2006)
After you have closed the year, you may want to verify the account balances in the new year. Verify that the company is in balance and that the beginning balances for the accounts are correct.
Verify totals
Verify company is in balance

30. Year-End Process Flow Adjust dates on CA and RJ entries
Use CA10.2 & GL70.2
to adjust dates for CY (2006)
Delete Transaction
History using GL300
Delete unused accounts
Use GL122 for
posting accounts
Use GL100 for
detail accounts
To prepare for the next year, you may need to extend the ending period and year on your allocations and recurring entries.
When you run period closing, the system does not delete transaction history, budgets or balances. You can delete transactions, balances or budgets at any time using General Ledger History Delete (GL300).
You can delete detail or posting accounts that haven’t had transaction activity or budgets for two years. Use Mass Account Change Delete (GL122) or Mass Chart Account Change Delete (GL100) to delete accounts in mass.

31. Adjust Dates on CA Entries
If you are adjusting the dates on allocations, you may want to move the ending date beyond the end of the current year so you minimize future maintenance on the entries.
May want to adjust ending dates beyond the end of the CY (2006)

32. Adjust Dates on RJ Entries
You may also want to move the ending date on recurring entries beyond the end of the current year so you minimize future maintenance on the entries.
This may not be a good idea if you are using Encumbrance Accounting, since the system will verify that there are budget amounts available through the Ending Period and Year that you enter for the recurring entry.
May want to adjust ending dates beyond the end of the CY (2006)

33. Delete Transaction History
Since period closing doesn’t automatically delete transaction activity, balances or budgets, you may want to delete this information for a selected year. You can choose whether you want to delete transaction activity, balances or budgets.
You can optionally save the information that you are deleting in CSV files for future reference. Here is a list of the archive files and the information that they store:
AMTARCH – account balances purged from GLAMOUNTS,
BUDARCH – budget balances purged from FBDETAIL,
CONSARCH – summary account balances purged from GLCONSOL,
TRANSARCH – journal entries purged from GLTRANS,
CURARCH – currency balances purged from CUAMOUNT,
UNTARCH – unit balances purged from GLUNITS
AMTXARCH – daily account balances purged from GLAMOUNTSX,
BDHARCH – budget versions purged from FBDTLHIST,
CURXARCH – daily currency balances purged from CUAMOUNTX, and
FBTRANARCH – budget transactions purged from FBTRANS.
Can delete unwanted transactions, balances & budgets
Can optionally save information in archive files

34. Delete Unused Posting Accounts
Use Mass Account Change Delete (GL122) to delete posting accounts that haven’t had budgets or transaction activity for at least two years.
Accounts must have no budgets or transactions for at least two years

35. Delete Unused Detail Accounts
Use Mass Chart Acct Change Delete (GL100) to delete detail accounts that haven’t had budgets or transaction activity for at least two years.
Accounts must have no budgets or transactions for at least two years

36. Special Considerations – Period 13
Can I use period 13 as an adjustments period?
At least one day must be dedicated to this period
Journal entries can be auto-reversed from period 12 to period 1, other entries cannot
Spread action in budgeting spreads to all periods
Let’s address a couple of questions that clients have at year-end and throughout the year.
Can I use period 13 as an adjustments period?
Some clients choose to use period 13 as an adjustments period. The advantage is that it makes it easier to report on the adjustment entries separate from the period activity for period 12.
If you use period 13, you need to dedicate at least one day to this period. For example, you could assign 12/30 as the period ending date for period 12 and 12/31 as the period ending date for period 13.
On version 8.1 or above, you can create a manual journal entry in period 12, using Journal Entry (GL40.1), and reverse it in period 1 instead of period 13. Recurring entries, allocations and other entries don’t allow you to indicate what period an entry is reversed in, so an auto-reversing entry created in period 12 is automatically reversed in period 13.
There is a Spread action code that you can use to split an annual budget evenly or unevenly to the periods in the year. If you use this functionality, the system will spread the budget to all periods, including period 13, if you use it as an adjustment period.
Based on those considerations, you need to decide whether it makes sense to use period 13 as an adjustments period in your company.

37. Special Consideration – Commitment Accruals
What is the purpose of Period Year End GL Commitment Accrual?
Optional process
Updates period/year on outstanding commitments & encumbrances
Create accruals for outstanding commitments & encumbrances
Auto reverse accruals in next period
Year-end – can create a budget journal entry for NY instead of an accrual entry
Period Year End Commitment Accrual (GL197) can be used by clients who track budget commitments and encumbrances in General Ledger. It is an optional process that advances the period and potentially the year on the outstanding commitments and encumbrances. You also have the option to create an accrual journal entry or a budget journal entry for the outstanding commitments and encumbrances. If you create an accrual entry, it is created as an auto-reversing entry so that it is reversed in the next period. If you are closing the year, you can choose to create a budget journal entry instead of an accrual entry for outstanding commitments and encumbrances to increase the next year’s commitment budget.

38. Related Knowledge Base Articles
General Ledger Year End Closing Process
Articles 83938, 74398, ,
What Happens When I Accrue Encumbrances & Commitments?
Articles 73832,
Consolidation Company Year-end Entry
Article 72115, 83940
Performing Optional Year-end Procedures
Article , 92992, 73910
There are many knowledge base articles that include information on the year-end closing process. Here is a list of some of the articles.

39. QUESTIONS ?? Paul Sterzinger Senior Business Analyst
This concludes the Lawson General Ledger Year-End Procedures presentation. For additional information about year-end processing, please refer to the General Ledger User Guide.