Year End Simulation
This page describes the 'Year End Simulation' Maintenance function in the Nominal Ledger.
---
The 'Year End Simulation' function is designed to be used in some countries (for example, Argentina) to set all Account balances to zero at the end of a fiscal year and to post end-of-year results. Running the function will create three Simulations as follows:
- Closing Year: Swap Results to Equity. This Simulation, dated at the end of a financial year, will set the balances of the Income and Expense Accounts to zero, with a balancing posting to a specified Year End Account. The Status of each row in this Simulation (visible on flip B) will be "Year End Stage 1".
- Closing Year: Swap Equity Accounts. This Simulation, dated at the end of a financial year, will set the balances of the Asset, Liability and Equity Accounts to zero, again with a balancing posting to a specified Year End Account. The Status of each row in this Simulation will be "Year End Stage 1".
- Opening Year: Swap Equity Accounts. This Simulation, dated at the beginning of a new financial year, will reverse the previous one, re-instating the balances of the Asset, Liability and Equity Accounts. The Status of each row in this Simulation will be "Year End Stage 2".
After creating these Simulations and checking they are correct, you should create Transactions from them in order to register the end-of-year results in the Nominal Ledger. To do this, highlight the three Simulations in the 'Simulations: Browse' window and select
'Create N/L Transactions' from the Operations menu (Windows/macOS) or Tools menu (iOS/Android). The Type in each row in these Transactions (visible on flip G) will be "1 - Year End Stage 1" (first two Transactions) or "2 - Year End Stage 2" (third Transaction).
- Year End A/C
- Paste Special
Account register, Nominal Ledger/System module
- Specify the Account that will be used to balance the three Simulations. You must specify an Account, otherwise the function will have no effect.
- Date
- Paste Special
Choose date
- Enter a date to be used as the Simulation Date in the two end-of-year Simulations that will be created by the function. If you do not enter a date, the current date will be used. The third Simulation (Opening Year: Swap Equity Accounts) will be dated one day later. As this Simulation should be dated at the beginning of a new financial year, the date that you specify here should be the last day of the previous year.
- Swap Debit & Credit of Equity Accounts
- This option is only available in Argentina (i.e. when the VAT Law in the Company Info setting is "Argentinean"). If this option is selected (and in countries other than Argentina), the function will create three Simulations as described above the illustration. Deselecting the option will mean that the third Simulation (Opening Year: Swap Equity Accounts) will not be created.
---
Maintenance functions in the Nominal Ledger:
Go back to:
Introduction to Maintenance in the Nominal Ledger
