Year-End Checklist


To help provide a smooth, holiday season transition, view this Year-End Checklist to ensure that all tasks are completed before beginning the New Year. Click here for a downloadable copy of this checklist.


Fiscal Years

  • Make sure you have next year's Fiscal Years set up for all active Legal Entities
  • Make sure there's no gap or overlap between your current year end date and your next year start date for both your Fiscal and Operational Calendars
    • Note: Any changes to the Operational Calendar after the start of the New Operational Year will only be effective going forward. To reflect changes retroactively, re-poll the DSS for any affected Locations


GL Detail

  • Update the Rent GL Account listed in R365 from being a Non-Controllable Expense to a Current Liability to follow the new ASC 842 Federal Accounting Mandate. Follow this process to update the account
  • When you need to run a GL Detail report for audit purposes, try the GL Account Detail Export or the GL Account Detail with Legal Entity Export. These reports are optimized for larger data sets
    • Note: Due to the large data sets these reports will be ran for, these reports can still take up to 15 minutes, depending on the parameters you apply


1099

  • Run the 1099 Review report to make sure that all 1099-eligible Vendors are configured properly
  • Updated Vendor records as necessary, based on your findings. If a 1099 Vendor has a 1099 Type set as 'Company' when it should be set as 'Individual', follow the Updating 1099 Vendor Typetraining article to ensure that the Vendor is set up correctly 
    • Note: When you set a Vendor as 1099-Eligible, you will have the option to update all invoices for that Vendor automatically. Learn more about 1099 Setup, Management, and Reports here


Budgets

  • Make sure at least one of your current year budgets is designated as a Reporting Budget
  • Make sure your Budget is based on the correct Calendar for your Organization's needs (Fiscal or Operational)


Retained Earnings

  • We've got you covered! R365 makes a dynamic YE Close posting to move your balance from the P&L to Retained Earnings


Closing Periods


Retained Earnings and Year End Close


Retained Earnings are the total profits that have been earned to date. In R365, Retained Earnings will appear for any set date range and will be based on net profit. In most Accounting Systems, closing out Retained Earnings is the last step in closing the Fiscal Year, whether through a Journal Entry or an internal process selected. 


In R365, that step is done automatically for you. Due to this occurring from the calculation of multiple points, however, there will not be a Journal Entry you can drill into to change this amount. It is also important to note that any changes you make in your GL will cause that entry to update Retained Earnings.



Viewing the Retained Earnings Calculation
Example for year change 2020 to 2021
At Year End, you will see a Net Income/Loss Line on the Balance Sheet called 'YTD Income', or Year-to-Date Income.

The Balance Sheet from 31 December 2020 displays a YTD Income of (-$50,457.29).



At the Beginning of the New Year, you will see that the Net Income/Net Loss was moved into Retained Earnings

The Balance Sheet from 1 January 2021 displays a Retained Earnings of $9,078,695.68 (the 2019 Retained Earnings + December 2020 YTD Income).

 




Once you are finished 'Closing the Year', or making any final adjustments, go into your Legal Entity record and 'Close' your system by giving it a Close Date. This will prevent any future postings prior to that date. 

  • Note: Unlike other transactions, you will not be able to drill down into the Retained Earnings transaction, but you will be able to see where all Expenses were zeroed out at Year End.