End of Year

Peach does not require any special �End of Year� process to tell the system that it is a new financial year. The initial setup of the program tells the system that the financial year ends in June, so when you roll the month into July, the Year to Date reporting etc is into the new financial year.

However, there are a few issues that we are asked about that are worth noting, plus one or two journal entries that are necessary for appropriate reporting.

Please have a look at the �End of Month Housekeeping� Help sheet to check that things are being looked at and kept up to date.

The issues include:

Stock on Hand valuation

Opening/Closing Stock journal entry

GST Payable and GST Credit accounts

Floor plan stock valuation

Backup Year End data

What do I give my accountant?

Stock on Hand valuation

The major issue that comes up at this time is getting a correct Stock on Hand figure.

The value of your stock is held in two places.

Firstly, each product in Stock Control has a quantity on hand and a cost price.

So the �best� figure for your stock on hand is given by the Stocktake report, which simply lists every product with a value for Quantity on Hand x Average Cost

Go to Reports > Product and select either Stocktake Report or Stocktake by Part and run the report with no options.

This may be very long, but just go to the last page and look at the figure for @ Ave Cost

The figure for @ Last Cost also shows the valuation using the Last cost figure. That is what is would cost you to replace your stock at your last buying price, not what it actually cost you. The Average Cost is more appropriate.

The accuracy of this report naturally depends on the accuracy of your Quantity on Hand figures and the Average Cost price.

Your stocktake process should have the Quantity on Hand up to date.

It is always a good idea to check the stocktake report for negative quantities.

Simply run the report with the �Neg Stock� option ticked. This will give you a list of negative stock. You can then look at these lines and correct them appropriately.

One of the regular issues with stock valuation figures is stock coming into the system after the end of the period. If you order stock on the 28^th June and it comes in on 3^rd July with an invoice dated 29^th June, what do you do with the invoice? The latest update of Peach includes a stocktake prior date report.

However if you run reports from the June data, they won�t be included.

The simplest approach is where possible to avoid the situation. If you can�t delay a purchase, ask for the invoice immediately so you can process it.

In the General Ledger, the Stock On Hand account (usually 1800) keeps the running balance as at the General Ledger date.

If you integrate all transactions and set the General Ledger date to today, the balance of Stock on Hand should reasonably closely match the Stocktake report figure. Any minor adjustment can be made using the Journals screen by journaling the difference between Stock on Hand and Closing Stock. To increase Stock on Hand, DEBIT that account and CREDIT Closing Stock. To reduce Stock on Hand, go the other way around.

If the Stock on Hand figure is substantially different from the Stocktake report, this needs to be looked at in detail. This can be a number of issues, like an incorrect (or no) opening balance, pack quantities incorrectly entered, zero stock items not identified as such, etc.

Opening/Closing Stock journal entry

A journal entry is required to create the �Opening Stock� and �Closing Stock� entries for the new financial year. These ledger accounts are Direct Expenses, so do not carry on from year to year. The balances are used in the Profit & Loss reports for the changes in stock level.

The details are on a separate Help sheet (attached)

GST Payable and GST Credit accounts

Check that you have done the journal entries at the end of each BAS period to journal your GST credits over to the GST payable account. This is necessary to stop the balances of these accounts going up and up forever.

A Help sheet is available on this process.

The difference between the two accounts on 30/06 should be the amount of GST you will pay on the next due date (usually 28/07).

Floor plan Stock

If you are purchasing stock on floor plan finance and booking these into the system (using the Supplier G/L Code 1800 {Stock on Hand}), then these units will be included in the stock take report.

To get a valuation for these units, run either the Stock take report or Stock Units report with the relevant Group Code(s) � eg MCN or whatever.

This can then be subtracted from the first report.

It would be a very good idea to cross-check this information with listings from the floor plan finance companies you deal with � YMF, CIT, GE etc

If you are familiar with the �Filter Report� system, you use this to filter the units out from the full Stock take report.

The inclusion of Floor plan stock in the Stock on Hand and Closing Stock ledgers will affect the Profit & Loss and Balance Sheet reports.

If you bringing Floor plan stock into the system (ie at time of getting the units in, not when you pay the trust receipt out), then a manual journal entry is currently required to move this value to Floor plan Stock and Floor plan Liability accounts.

A Help sheet is available to assist with the journal entry. Please contact us if you are doing the process for the first time.

As part of your normal backup procedures, take an extra backup (or two) of your data for June 30 and store them somewhere off-site.

Just in case �.

What do I give my accountant?

Your accountant will need

Trial Balance report to 30/06 � make sure the nett is zero (ie it balances), and check that there aren�t any �strange� entries. Eg, accidentally scanning a barcode into a stocktake quantity field can give a stock on hand figure of squillions of dollars � obviously wrong.

Bank statements and Bank Reconciliation reports as at 30/06 for all bank accounts, loans and credit cards.

Make sure there is a zero variance in all cases.

Aged Customer Prior Date � to 30/06 � make sure it matches the GL balance

Aged Supplier Prior Date � to 30/06 � make sure it matches the GL balance

Details of your expense ledgers. Invariably your accountant will want to check what expenses you have put where. So run the �GL Transactions by GL Code report for the full financial year for all your expense accounts. Set the range to cover the overhead expense range � usually 9000 to 9999. Rather than printing it, save it as an Excel spreadsheet or Word document (ask us how if you need assistance). Your accountants will be able to look through whatever they like.

Generally you wouldn�t give your accountant a Profit & Loss report or Balance Sheet. That is what they do, and they will be adding in things like depreciation schedules etc. So it won�t match what they do, and they might charge you to look at it and tell you why theirs is different!

The same applies to checking the debtor and creditor reports against the Trial Balance, GST Payable and Credit accounts etc. You will find it much less expensive to check them yourself before you give them to your accountant.

If they do not match, your accountant will ask for an explanation and give you a bill for asking!

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peach Members Profile Find Members Posts Admin Group THE BOSS Joined: 01-Jan-2006 Status: Offline Points: 1295	Post Options Post Reply Quote peach Report Post Thanks(0) Quote Reply Topic: End of Year Posted: 30-Apr-2012 at 07:19
	The Journal should be dated the first day of the new financial year and journaled between Opening and Closing Stock to bring in Stock on Hand figure forward from previous financial year. You don�t have to do this straight away but should be done before the end of the opening month but ensure the journal is still dated the first day of the month e.g. 01/07. The amount would be the closing balance of Stock on Hand as of 30/06/2011. They have to debit Opening Stock and Credit Closing Stock. For the Peach Standard chart of accounts this is how it would look..... Edited by peach - 30-Apr-2012 at 07:24

Guests Members Profile Find Members Posts Guest	Post Options Post Reply Quote Guests Thanks(0) Quote Reply Posted: 15-Jan-2007 at 02:55
	Peach does not require any special �End of Year� process to tell the system that it is a new financial year. The initial setup of the program tells the system that the financial year ends in June, so when you roll the month into July, the Year to Date reporting etc is into the new financial year. However, there are a few issues that we are asked about that are worth noting, plus one or two journal entries that are necessary for appropriate reporting. Please have a look at the �End of Month Housekeeping� Help sheet to check that things are being looked at and kept up to date. The issues include: Stock on Hand valuation Opening/Closing Stock journal entry GST Payable and GST Credit accounts Floor plan stock valuation Backup Year End data What do I give my accountant? Stock on Hand valuation The major issue that comes up at this time is getting a correct Stock on Hand figure. The value of your stock is held in two places. Firstly, each product in Stock Control has a quantity on hand and a cost price. So the �best� figure for your stock on hand is given by the Stocktake report, which simply lists every product with a value for Quantity on Hand x Average Cost Go to Reports > Product and select either Stocktake Report or Stocktake by Part and run the report with no options. This may be very long, but just go to the last page and look at the figure for @ Ave Cost The figure for @ Last Cost also shows the valuation using the Last cost figure. That is what is would cost you to replace your stock at your last buying price, not what it actually cost you. The Average Cost is more appropriate. The accuracy of this report naturally depends on the accuracy of your Quantity on Hand figures and the Average Cost price. Your stocktake process should have the Quantity on Hand up to date. It is always a good idea to check the stocktake report for negative quantities. Simply run the report with the �Neg Stock� option ticked. This will give you a list of negative stock. You can then look at these lines and correct them appropriately. One of the regular issues with stock valuation figures is stock coming into the system after the end of the period. If you order stock on the 28^th June and it comes in on 3^rd July with an invoice dated 29^th June, what do you do with the invoice? The latest update of Peach includes a stocktake prior date report. However if you run reports from the June data, they won�t be included. The simplest approach is where possible to avoid the situation. If you can�t delay a purchase, ask for the invoice immediately so you can process it. In the General Ledger, the Stock On Hand account (usually 1800) keeps the running balance as at the General Ledger date. If you integrate all transactions and set the General Ledger date to today, the balance of Stock on Hand should reasonably closely match the Stocktake report figure. Any minor adjustment can be made using the Journals screen by journaling the difference between Stock on Hand and Closing Stock. To increase Stock on Hand, DEBIT that account and CREDIT Closing Stock. To reduce Stock on Hand, go the other way around. If the Stock on Hand figure is substantially different from the Stocktake report, this needs to be looked at in detail. This can be a number of issues, like an incorrect (or no) opening balance, pack quantities incorrectly entered, zero stock items not identified as such, etc. Contact us for further assistance on this. Opening/Closing Stock journal entry A journal entry is required to create the �Opening Stock� and �Closing Stock� entries for the new financial year. These ledger accounts are Direct Expenses, so do not carry on from year to year. The balances are used in the Profit & Loss reports for the changes in stock level. The details are on a separate Help sheet (attached) GST Payable and GST Credit accounts Check that you have done the journal entries at the end of each BAS period to journal your GST credits over to the GST payable account. This is necessary to stop the balances of these accounts going up and up forever. A Help sheet is available on this process. The difference between the two accounts on 30/06 should be the amount of GST you will pay on the next due date (usually 28/07). Floor plan Stock If you are purchasing stock on floor plan finance and booking these into the system (using the Supplier G/L Code 1800 {Stock on Hand}), then these units will be included in the stock take report. To get a valuation for these units, run either the Stock take report or Stock Units report with the relevant Group Code(s) � eg MCN or whatever. This can then be subtracted from the first report. It would be a very good idea to cross-check this information with listings from the floor plan finance companies you deal with � YMF, CIT, GE etc If you are familiar with the �Filter Report� system, you use this to filter the units out from the full Stock take report. The inclusion of Floor plan stock in the Stock on Hand and Closing Stock ledgers will affect the Profit & Loss and Balance Sheet reports. If you bringing Floor plan stock into the system (ie at time of getting the units in, not when you pay the trust receipt out), then a manual journal entry is currently required to move this value to Floor plan Stock and Floor plan Liability accounts. A Help sheet is available to assist with the journal entry. Please contact us if you are doing the process for the first time. As part of your normal backup procedures, take an extra backup (or two) of your data for June 30 and store them somewhere off-site. Just in case �. What do I give my accountant? Your accountant will need Trial Balance report to 30/06 � make sure the nett is zero (ie it balances), and check that there aren�t any �strange� entries. Eg, accidentally scanning a barcode into a stocktake quantity field can give a stock on hand figure of squillions of dollars � obviously wrong. Bank statements and Bank Reconciliation reports as at 30/06 for all bank accounts, loans and credit cards. Make sure there is a zero variance in all cases. Aged Customer Prior Date � to 30/06 � make sure it matches the GL balance Aged Supplier Prior Date � to 30/06 � make sure it matches the GL balance Details of your expense ledgers. Invariably your accountant will want to check what expenses you have put where. So run the �GL Transactions by GL Code report for the full financial year for all your expense accounts. Set the range to cover the overhead expense range � usually 9000 to 9999. Rather than printing it, save it as an Excel spreadsheet or Word document (ask us how if you need assistance). Your accountants will be able to look through whatever they like. Generally you wouldn�t give your accountant a Profit & Loss report or Balance Sheet. That is what they do, and they will be adding in things like depreciation schedules etc. So it won�t match what they do, and they might charge you to look at it and tell you why theirs is different! The same applies to checking the debtor and creditor reports against the Trial Balance, GST Payable and Credit accounts etc. You will find it much less expensive to check them yourself before you give them to your accountant. If they do not match, your accountant will ask for an explanation and give you a bill for asking!