What should I do if my year end close is taking too long?
Be Patient. The December close takes longer than all other month end closes. Please wait for the process to complete. Do not attempt to exit Inform or end the task, as this could cause problems. If you find your December Month End close is taking longer than 2 hours, please contact DDI Customer Care.
If I normally close the month on the 25th, should I close the year on the 25th or the 31st of the month?
If you produce statements on the 25th, and you want the close results to mirror the Aging on the statements, then you must close the year at the same time. The system A/R Aging then matches the value of statements. This timing also keeps the months even in terms of number of days of activity. Note that if you choose to close on the 31st anyway (while retaining your 25th close process for next year), then there will be extra days in December and fewer days in January. There is no system advantage to either method.
How can I write off bad debts?
You can remove a debt that you have been unable to collect from a customer account. Note that there are additional considerations when removing bad debt from the books, such as crediting sales tax. Always check with your management and CPA for guidance before proceeding.
To include the accounting effect in the correct period, this process must be completed before closing the final Accounts Receivable period of the Year. Otherwise, you must log an accrual journal entry to move the effect. See Use journal entry accruals.
- Go to Accounting > Accounts Receivable > Cash Receipts Posting.
- In the Customer box, type or select the customer. Inform ERP displays all open items in a table.
- In the Payment Type list, make sure Check is selected, and then in the Check Number box, type a description such as WO 2018.
- In the Amount box, type 0.
- Ignore the Bank G/L account displayed at the top of the window; it is not relevant in this transaction.
- To credit any billed sales tax first, right-click open invoices and click Issue Tax Credit. On the confirmation message that appears, click Yes. Note that this sales tax method is only appropriate for invoices originating in Inform. See Enter sales tax credits and debits.
- For the invoice you just credited, go to the Adjustment column and type the remaining value to be written off as a positive number (Balance Due - Tax Credit). When the adjustment amount is entered, the Balance will change to zero.
- In the Adj G/L column, click and choose the G/L account used to record Bad Debt Expense.
- Click Save.
Because there is no change in cash, this item may be posted individually or with a regular cash batch.
For more information, see Write off bad debts.
How do I complete the General Ledger Year End Close
Your must complete your final end of month close for Accounts Receivable and Accounts Payable prior to closing the General Ledger year. This is the most critical EOM close because it is the final opportunity to post or correct transactions originating from sales, purchases, inventory adjustments, receipts, and disbursements.
Please note that the annual close of the General Ledger operates independently of the monthly closes of A/R and A/P and may be performed at a LATER time than the final end of month closes.
The annual close is reversible and not time-sensitive. It may be performed any time after the final monthly close. The monthly closes, however, are irreversible and should be performed in conjunction with a calendar month end for optimal results
To close the G/L year: go to Accounting > General Ledger > General Ledger Year End Close.
On the confirmation pop-up that appears, click Yes.
- All Balance Sheet accounts will roll forward with balances.
- All Income Statement accounts will close into Retained Earnings to start the new year at zero.
- The system reindexes the new year. Therefore, use caution if you are reopening a prior year after current year financials are final.
- This process should be performed only when there are no users actively posting on the system. It will take 1 to 5 minutes to complete.
To re-open a closed year, go to Accounting > General Ledger > Re-Open Previous Fiscal Year.
- This process is required only to make journal entries to the prior year.
- No other transaction sources may be entered or edited.
- Remember to reclose the year after making any adjustments; otherwise, the balances will not update the current year.
See also: End of year close process
How can I enter additional payables into closed year?
If you have already completed a General Ledger Year End Close and need to enter additional expenses in December, follow these steps:
- Go to File > Company > Master: Accounting, and set Allow Period Change in Accounts Payable to Y to enable invoice entries to closed periods. Note that this applies to the invoice entry and not to the payment thereof. Disbursements are restricted to the current A/P period.
- Reopen the G/L year: Go to Accounting > General Ledger > Re-Open Previous Fiscal Year.
- Enter the invoice and edit the accounting period. Assigning a date does not affect the invoice period and therefore it must be set manually.
- Close the G/L Year: Go to Accounting > General Ledger > General Ledger Year End Close. This process includes a reindex of the new year. Ensure that there are no users actively updating the G/L while a year end close is running.
- Note that the Accounts Payable Aging Report generated at the time of A/P end of month close is no longer a valid representation of the A/P liability at the end of the year.
- If you have not entered any current year payables or paid any bills, re-run the Aging and its balance should tie to the G/L balance at the end of the year.
- If current year payables and checks have been processed, then if you run the Aging Report again, it will include their effects, as well as the additional December items. You will need to use a manual process to reconcile to an updated Aging Report.
How can I reconcile the book balance with the G/L period and balance?
It is very common for the bank to reconcile to the system, but still generate timing variances between the reported "reconciled book balance" and the "G/L period end balance." This happens because the General Leger is *accounting-date-driven* and the bank reconciliation is *transaction-date-driven.*
- The G/L ignores the transaction date in favor of the accounting period assigned to the item.
- The bank reconciliation ignores the accounting period in favor of the transaction date assigned to the item.
Therefore, the only way to prevent these differences is to ensure that all bank transactions carry a consistent date and accounting period; however, this is not always reasonable or feasible. Here are some common examples of situations that cause "timing" differences:
- Clearing an item assigned to a future G/L period. The effect of the item will be felt in the book balance for the current month, but the G/L will be delayed.
- Outstanding items posted to the bank reconciliation period, but with a date in a future month. In this case, the G/L balance will include the item, but the book balance will not because the bank reconciliation uses transaction dates to qualify an item as outstanding in the bank rec period. For example, if a period 0217 batch of A/P checks is post-dated to 3/1/17, and none of the checks clear in February, then the book balance will be off because it won't list these outstanding items, but the G/L will include them in the period 0217 balance.
- Entering items to a period after that period's bank reconciliation has been finalized. If the bank statement balanced to the system, there should never be a need to enter additional items to that period's G/L.
- Voided A/P checks can cause differences depending on the timing, because a void stops showing up as an outstanding check on the next bank reconciliation started after the void, but hits the *current* G/L accounting period. If you voided a January check in March, but have not reconciled January or February, then there will be variances as the book balance is reflective of this variance, but the G/L is delayed until March.
How should I handle the changes in sales tax rates?
You cannot reindex sales tax code calculations. Therefore, you must make any percentage or column changes after the final billing for the period, but before the first billing of the new tax rate period. Please check with your CPA for tax rates in your jurisdictions.
To view or edit tax codes, go to File > Customer > Tax.
See also: Sales tax rate changes
How can I produce a Vendor 1099 Listing?
Note that Inform does not print IRS tax forms. Please consult your CPA or irs.gov to obtain the relevant form.
For inclusion on the report, a vendor must be defined as 1099-eligible. Also make sure every 1099 vendor is populated with a Tax ID number for reporting purposes.
- Go to Accounting > Accounts Payable > Vendor Ledger: Setup to define a new vendor.
- Click the General tab, and then select the Issued 1099? check box.
- Click Save.
The Report feature is available in numerous system files such as customers, vendors, products, and G/L accounts. Use it to create an exportable 1099 Report.
- Go to Accounting > Accounts Payable > Vendor Ledger.
- Click the Report button, and then bypass Criteria Options so that all records are initially selected.
- Click Additional Criteria and Add Criteria.
- Choose the field called 1099 Vendor, and set the value equal to Y.
- Click OK.
- In Available Fields, hover over a Description to view a definition.
- Select a field to add to the report Print Order on the right.
- Click and drag to rearrange the order of fields.
- To remove a field, click the X to the right of the record.
- To start over, click the Reset button.
- When the report design is complete, click OK to view, print or export the report.
See also: Produce a vendor 1099 report