The process has to run in Sole Access Mode, so make sure everybody is logged out of the company and then login using a supervisor password.
1. To start the Year End process: Pastel Menu – Select Change -> Year End
2. Pastel checks the final financial period has transactions i.e. whether it is appropriate to run the year end. If no transactions exist Pastel Accounting warns you with a message.
3. The Pastel Year End Assistant Screen opens. Always backup before you start your Year End. Even if you’ve already done a backup, do a backup now by clicking the Backup button.
4. The File Backup Screen opens.
5. From the File Backup screen, select a directory to backup to click process. a. For Verify Method – select Ensure Files Readable. b. For Images – select to Backup images.
6. Because we selected to ensure files were readable, the backup process notifies us that it has completed zipping our data files and is about to test that this backup is readable. (This is done as it can happen that a backup is saved to damaged sectors of the hard drive and cannot be restored – this procedure checks that the files are readable).
7. Once the backup is complete you are returned to the Year End Assistant Screen, click Next.
8. If open batches exist, the Assistant will display an error and the user will need to update the open batches.
– To see Open Batches: select Pastel Menu – View – Open Batches
– Open Quotation Sales Order batches may be ignored because they do not create financial entries, but any transaction type batches will need to be updated, (including POS Batches)
– Ticks in the All Users column are fine, but there should be no ticks in any other user columns when attempting to run the Assistant again.
9. The Copy the Company to Another Company screen. The selection here is a matter of personal preference, but i personally like to copy the company to a new company, (give it a name indicating the new financial year) and perform the year end process in that new company. This allows users full access to historical information BUT requires year end Auditors adjustments to be entered into both companies, this is to ensure that the closing trial balance in the one company agrees to the opening trial balance in the new company. More effort -yes, but definitely beneficial when wanting to analyze years and years of historical data, as this approach ensures no historic detail is lost. -Select Create a New company called – Enter New Company Name (8 chars) – Select Run Year End in New Company
10. If you have chosen a financial year setup of 13 periods with the 13th being the first period of the new year, Pastel will ask you whether you want to copy the periods budgets to the new year. Make a selection and continue.
11. The Print Reports screen opens reminding us of the most important reports that should be printed before beginning the year end procedure, these being: a. Trial Balance b. Income Statement c. Balance Sheet d. Customer and Supplier Age Analysis e. Detailed ledger for all accounts
12. The What Yean Does screen opens. This screen tells us exactly what Pastel Accounting Year End Function does – please read through this to see if any alarm bells go off, but the effects listed are standard for all accounting systems. We are almost finished now%uF04A. Click Next.
13. The Confirm Operation screen opens, this screen is your final confirmation that you want to run the year end procedure. If you are sure, Click Process.
14. The year-end procedure runs and confirms that it is complete. If this process is interrupted e.g. power failure, restore the backup created earlier and begin this process again.
15. Depending on your selection related to copying companies and in which company to do the year end, you will find yourself in the appropriate company to process the New Year’s transactions.
Pastel Accounting Year End Procedure: Effect What the year end procedure does… The year-end procedure does the following:
1) General Ledger Balances For income statement accounts, current year balances move to last year. For balance sheet accounts, last year balances consolidate as one total, and the current balances move to last year. Current year balances are set to zero. The system posts the profit or loss for the year into the retained income account.
2) Customer and Supplier Balances Last year balances consolidate as one total, and the current balances move to last year. Current sales / purchases balances move to last year. This year balances and sales / purchases values become zero.
3) General Ledger, Customer, and Supplier Transactions The system deletes last year transactions. This year transactions become last year transactions, and the system creates a new, empty transaction file for the current year. Invoices on hold have their period set to period one.
4) Inventory Costs, Sales, and Quantity Values The system accumulates these into the last year totals, and the current values become zero.
5) Periods The system increments years by one year in the period table, and adjusts period end dates if necessary, for example, for leap years. The system sets the current period to one for single period users. 6) Moves Period 13 If you set period 13 as the first period of the new year, the system transfers period 13 transactions and balances to period one of the new year.
Pastel Accounting Preparation
What must you do first….
1) Update Open Batches: You cannot process the year-end if you have open batches on your system.
2) Backup Your Company: We cannot overstate the importance of this step. You should keep this backup, and NEVER overwrite it.
3) Make Printouts:
– Trial balance for the year.
– Balance Sheet for the year.
– Detailed ledger for all accounts and all periods.
– Customer and supplier age analysis reports.
– Any other reports you deem necessary.
4) Ensure a Retained Income Account is Specified
5) Copy the Company to a New Company: This is optional – we recommend it highly. To run the year-end procedure The system first validates the following:
– You need to be a supervisor.
– The Retained Earnings Account must exist.
– There can be no open batches.
– If there are no transactions in the last period of the current financial year, the system warns you, since in all probability you should not be running the year-end.
– The Year End Backup screen displays: The Confirm Operation screen displays. Click the Process button to perform the year-end, or click the Cancel button to leave the function without processing.