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Year-End Closeout Procedures and Reports

 

CORNERSTONE

PLEASE NOTE:  These are recommendations only, check with your Accounting Department or CPA to see what items they wish you to add to these procedures.

 

  1. Review the Fiscal Year Settings in Cornerstone.
    1. Go to Tools > Customization Options > Financial Customization > Fiscal Period
    2. If you need to add to the available fiscal years:

                                                               i.      Click on Add More Years

                                                             ii.      Enter Starting Year (first year to add)

                                                            iii.      Enter Ending Year (last year to add)

                                                           iv.      Click on Set Up Fiscal Year

                                                             v.      Click on Verify Fiscal Period Setting

    1. Change the open transaction period to include the newly added fiscal year:

                                                               i.      Go to Financial Customization > Others

                                                             ii.      Change the End Year to the new ending year

                                                            iii.      Click Save to store your changes

  1. Run your normal month-end close reports.
  2. In addition to the usual month end reports and reconciliation, the following should also be done before performing a year-end close.
    1. Run an Aged Receivables Report (RT04). 

                                                               i.      Identify any incorrect outstanding balances that need to be dealt with.

                                                             ii.      Clear those balances as needed.

    1. Run a Security Deposit List – Pending Refunds (RT29). 

                                                               i.      Perform any S/D refunds as needed

                                                             ii.      Perform any S/D forfeitures as needed

    1. Write off to bad debt expense any uncollectible amounts as identified by the previous two steps. 
  1. Perform a rent reconciliation (Excel worksheet and instruction documents are available from Client Care)
  2. Close the last period of the current fiscal year for Rent  (Period end processing)
  3. If you have the Ledger module:
    1. Go to Ledger > Utilities > Forward Opening Balances (and select the new fiscal year)
    2. Print the following reports:

                                                               i.      Balance Sheet (GL04) - use the last day of the fiscal year to be closed out.

                                                             ii.      General Ledger Trial Balance - Summary (GL01) - same date as the GL04

                                                            iii.      Income Statement (GL09) - same date as the GL04

  1. For clients that have the Payables module, print the following reports:
    1. Vendor Aged Payables (AP04) or the Vendor Aged Payables –Centralized (AP05) if you run Centralized Payables
    2. Invoice Out of Balance Report by Vendor (AP09)
    3. 1099 Vendor Worksheet (AP14) - if you generate 1099s using Cornerstone

 

 

IPMS

 

PLEASE NOTE:  These are recommendations only, check with your Accounting Department or CPA to see what items they wish you to add to these procedures.

 

  1. Run your normal month-end close reports.
  2. In addition to the usual month end reports and reconciliation, the following should also be done before performing a year-end close.
    1. Run an Aged Receivables Report (TR04). 

                                                               i.      Identify any incorrect outstanding balances that need to be dealt with.

                                                             ii.      Clear those balances as needed. (Use the Bad Debt write off faxback)

    1. Run a Security Deposit List – Pending Refunds (TR29). 

                                                               i.      Perform any S/D refunds as needed

                                                             ii.      Perform any S/D forfeitures as needed

    1. Write off to bad debt expense any uncollectible amounts as identified by the previous two steps. 
  1. Perform a rent reconciliation (Excel worksheet and instruction documents are available from Client Care)
  2. Close the last period of the current fiscal year for Resident Receivables (Period end processing)
  3. For clients that have the Vendor Payables module, print the following reports:
    1. Vendor Aged Payables (AP04) or the Vendor Aged Payables –Centralized (AP05) if you run Centralized Payables
    2. Ensure that all outstanding vendor balances appearing on the Vendor Aged Payables (AP04) or the Vendor Aged Payables –Centralized (AP05) if you run Centralized Payables are correct. If they are not correct, you may need to enter a credit invoice to remove incorrect vendor balances from those reports.
    3.  Close out the last period of Vendor Payables when satisfied that vendor balances in the two previous steps are correct.
  4. If you have the Ledger module:
    1. Print the following reports:

                                                               i.      Balance Sheet (GL04) - use the last day of the fiscal year to be closed out.

                                                             ii.      General Ledger Trial Balance - Summary (GL01) - same date as the GL04

                                                            iii.      Income Statement (GL09) - same date as the GL04

                                                           iv.      Before closing out the General Ledger, make sure that all other modules have been closed out FIRST!

                                                             v.      Note that any needed correcting journal entries from your accounting staff or auditors can be entered in for the prior year by dating the entry as the last day of the previous fiscal year, such as 12/31/xxxx, where ‘xxxx’ is the four digits for the fiscal year and the type of journal entry would be “Prior Period “. There is no need to leave the General Ledger unclosed for the finished fiscal year.