PREPARING FOR THE YEAR END

Procedures on pages 1 & 2 can be done anytime throughout the year to keep data correct and minimize work at the end of the accounting year.

BALANCING ACCOUNTS RECEIVABLE

• Subsidiary Ledger report:

• Q – Reports
• C – Income/Receivables
• J – Summary Aged Receivables
• N – To Balance forward
• P – To Print

• General Ledger report:

• N – Bookkeeping
• N – Account Maintenance
• Arrow down to the correct General Ledger Account
• F10 – To bring up the distribution screen
• Ctrl/page down

The year to date balance from the General Ledger report should match your Subsidiary Ledger report ending balance.

If the two balances do not match; the following utility will assist to find the problem

• N - Bookkeeping
• I - Deposit Utilities
• B – Verify all income

This utility will go through all the adjustments and customer accounts in the Sales Ledger to make sure they are in balance. (Deposits = Paid invoices + Unapplied amounts). PTM will report any customers with a difference in the calculated balance from the Trial Balance.

STEP 2 Verify beginning A/R General Ledger balances to the Subsidiary A/R last year balance.

• Subsidiary Ledger last year Balance report:

• Q – Reports
• C – Income/Receivables
• O – Other Options
• E – Recreate Aged Receivables
• Enter your last year's closing date (12/31/2003)

• Balance Sheet from last year/beginning totals
  • N – Bookkeeping
  • E – Reports
  • E – Income/Balance Sheet
  • Last year's Income Statement

  The total from your Subsidiary Ledger report should match the total on A/R from last year's Balance Sheet

  STEP 3.

  Write off any bad debt records you identified

  See BAD DEBT WRITE OFF page 9

  BALANCING ACCOUNTS PAYABLE

  STEP 1.

  Verify the Accounts Payable General Ledger matches or balances to the Subsidiary Ledger.
  • Subsidiary Ledger report:
  • N – Bookkeeping
  • E – Reports
  • A – Vendors and Payables
  • B – Payables Aged Summary
  • P – to Print or S to Screen
  • General Ledger report:
  • N – Bookkeeping
  • N – Account Maintenance
  • Arrow down to the correct General Ledger Account
  • F10 – To bring up the distribution screen
  • Ctrl/page down

  The year to date balance from the General Ledger report should match your Subsidiary Ledger report ending balance.

  If the two balances do not match; the following will assist you to diagnose the problem

  • N – Bookkeeping
  • E – Reports
  • D – Recreate Aged Payables
  • Leave the date as today's date
  • N – To Detail
  • Y – To Diagnostics
  • Y – To invoices dated outside of current year.
  • Y – Would you like an unverified Accounts Payable check report?
  • N – Would you like to compare invoices to a prior year data?

  STEP 2. Verify A/P beginning General Ledger balances to the Subsidiary A/P last year's balance.

  • Subsidiary Ledger last year Balance report:
  • N - Bookkeeping
  • E - Reports
  • D – Recreate Aged Payables
  • Enter your last year's closing date (12/31/2003)
  • N – To Detail
  • N – To Diagnostics
  • N – To any other prompts that may come up
  • Balance Sheet from last year/beginning totals
  • N – Bookkeeping
  • E – Reports
  • E – Income/Balance Sheet
  • Last year's Income Statement

  The total from your Subsidiary Ledger report should match the total on A/P from last year's Balance Sheet

  PTM'S BEGINNING NEW-YEAR STEP BY STEP INSTRUCTIONS

  FOR 2003

  Whether you run your business on a calendar or a fiscal year, use these instructions on the last date of your year. The Year End utility must be processed prior to billing any new-year (dated) sales. If the beginning of your new year comes in the middle of the week, we recommend running the year-end utility the night of your year-end, to simplify the sales routine on the first day of your new year. If you are not able to run the year-end utility on the last day of your year, new sales (dated in the new year) must not be finalized until the year-end utility is completed in PTM. Note: This document will refer to 12/31 as the year-end date as in a calendar year. If you are on a fiscal year-end please use your fiscal year-end date.

  AT THE "YEAR-END"

  Bill out any "finished" work orders / invoices for the year. Write off any Bad Debt.

  On the J. Deposits screen, make sure all deposit records with a "last year" date are deposited with a "last year" deposit date (example: all 2003 records are deposited on or before 12/31/2003 and removed from the J. Deposit screen. Items that are listed on the J. Deposit screen that are not ready to be deposited must be moved from the J. Deposit screen onto the customer's account and into M. Income Receivables by highlighting the record on the J. Deposit screen and pressing "R" Receivable (shown at the top of the screen) to move the record onto the customer's account in M. Income Receivables. The J. Deposit screen MUST be empty of any 2003 dated records before the year-end utility is processed.

  • Verifying Customer Accounts – Print the Verify Income Report: N. Bookkeeping, I. Deposit Utilities, B. Verify Income. This report will print a list of customers and the total amount off in each account. Correct any customer accounts showing a balance off using M. Income / Receivables.

  Print all customer statements. Double-checking your customer account totals.
  Print a total Accounts Receivable and a total Accounts Payable report before and after Year-End to make sure the Year-End leaves the correct balances intact.

  • A/R report: Q. Reports, C. Income Receivables, A. Everything Posted "R", P. Print
  • A/P report: N. Bookkeeping, E. Reports, A. Vendor/Payables, B. Payable Invoice Detail, P. Print
  • "Sum Inventory – N. G. (for customers who are NOT using Cost of Goods bookkeeping).
  • Check the G/L for balance - N. Bookkeeping, Q. G/L Setup, A. Master G/L, A. Current year. If the current year G/L is out of balance, "Redistribute All Data", N. F. A.

  Process your archive manually to be sure all billed items exist in the archive directory. Keystrokes; F. File Utilities, O. Data File Utilities, Enter the File Access Code PTM-FAC, H. Setup Archive Drive and Path. Press enter on the prompt "Enter Archive Drive & Path", Press "Y" to archive in the mornings, then enter on 1 day between each archiving, and press "Y to "WOULD YOU LIKE TO ARCHIVE RIGHT NOW". Press "X" (twice) to exit data file utilities.

  Do Not credit any customers ( ROA's) or write checks dated for the new year or process any Vendor accounts until AFTER the Year-End utility is processed. Doing either of these will change your actual Year- End totals, for A/R and A/P. This utility will not affect your Payroll records, Payroll has separate Year-End steps on page 5

  ---

  The items shown above MUST be done before processing year-end.

  ---

  *DO A COMPLETE BACKUP OF PTM BEFORE RUNNING YEAR-END*

  (THIS BACKUP MUST BE ON REMOVABLE MEDIA (Zip Disk, CD, Floppy Disks, etc…)

  WE RECOMMEND DOING AN "X-Y" BACKUP TO THE HARDDRIVE WHEN EXITING PTM.

  Note: A Tape Backup is another form of backup. However, if a tape is used, it MUST not be used again. Recommend it be taken off premises.

  Preparing to process the "YEAR-END" utility

  The Year-End utility requires exclusive use; no PTM files can be open on any other workstations (re-booting your server will close all open files and verify there are no other users in PTM). Double check your Beginning of Year and End of Year dates in E. System Setup, N. Set Year End to verify they are correct based on your calendar or fiscal year-end dates.

  THE YEAR-END UTILITY:

  - At the main Menu, go to F. File Utilities and H. End of Year Preparation. The screen will explain the year-end process, press "Y" to continue. The next screen will prompt for the path. Example; if the last date of business in the year is Dec 2003, your last year data is for the year 2003, enter \2003 into the prompt to comply with what your end of year is. Do not enter dashes, periods, spaces, etc., when naming a new directory; use only the four-digit year. After entering the path (\2003), the screen will show the year ending date from E. System Setup

  *Write directory Drive and Path used for Last Year: ___________

  • If the date is correct press "Y".
  • The prompt will ask, "Would you like to create a backup file 2003", answer "Y",
  • Do you have paid invoices in the current year? Press "N".
  • As the process continues, you will be asked several more questions, press Y on all other prompts.

    This process generally takes less than a half hour to run. The Year End process will remove all last year (2003) records not required for the current year (2004). This includes the Sales Ledger, Check Register, Accounts Payable and the Adjustment Journal entries. Current unpaid "customer" invoices and current unpaid "vendor" invoices will be the only remaining data records in the New Year directory \PTM. All 2003 data can be viewed in the \2003 directory (Customer, Vendor, and Inventory databases will remain untouched).

    FINAL STEPS TO THE YEAR END UTILITY… (The below steps must be completed)
    1. Go to E. System Setup from the Main Menu, select N. Set Year End. Indicate the new system Beginning of Year & End of Year Dates for your new year (1/1/2004 – 12/31/2004).
    2. Redistribute all the new year's data to the General Ledger. Go to N. Bookkeeping, F. Distribution Menu, A. Redistribute All Data. Verify that the Beginning and End Year system dates are correct for the new year (1/1/2004 – 12/31/2004) and that the current date is 1/1/2004 or dated within the new system dates.
    AFTER THE YEAR-END UTILITY IS FINISHED—ITEMS TO CHECK IN CURRENT DIRECTORY

    All records dated last year will no longer be in your current year directory, (with the exception of un-paid customer invoices (receivables) and vendor invoices (payables)).

    1. There should be no checks dated last year in N. Bookkeeping, K. Check Maintenance.
    2. There should be no adjustments dated last year in the N. Bookkeeping, H. Adjust Maintenance.
    3. There should be no stored old Payables; N. Bookkeeping, C. Invoice Maintenance., [F10] paid records.
    4. There should be no paid Receivables; M. Income Receivables, (P) paid-or-(D) deposit
    5. Inventory: Zero the quantity sold - To start the New Year with a zero quantity sold on each Inventory part. Select C. Inventory; bring a part up on the screen, O. Options, O. Zero Quantities or Quantities Sold, B. Zero All Qty Sold.
    6. The Check Log in N Bookkeeping, M. Maintenance Menu, B. Check Log will look normal with the last line indicating your bank / checking account balance (N. Bookkeeping, J. Enter Checks) and that you have redistributed, press R to Reset and X to Exit.
    7. The current G/L Totals in N. Bookkeeping, Q. G/L Setup should be zeroed for the current year, to enable you to start the New Year fresh with out any detail from last year.
    8. To view the Last Year-Ending G/L figures from inside the current year, go to N. Bookkeeping, Q. G/L Setup, C. Last Year or Beginning. All totals will scroll to the screen. If the last year's balance total is off, this will be caused by the amount of last year's profit (this amount will need to be moved to Retained Earnings).
    9. To balance the Last Year-Ending totals moving profit into Retained Earnings, press the "O" OPTION at the bottom of the screen. This will Auto-Balance the Profit & Loss to the Retained Earnings account, press [ENTER] on each prompt that appears on screen. (To correct the INVENTORY VARIATION amount pertaining to your end-of- year financial statement, it is here through N. Q. C. "O" Options that it may be amended or changed to reflect the correct variation total.)
    10. After all changes/adjustments have been made to the Last Year directory, you may update the existing totals in N, Q, C, with the newly corrected totals from the \2003 directory (or the last year directory) by using N. Bookkeeping, Q. G/L Setup, F. Update last year from \2003 (in the current year). *For changing existing G/L totals in the last year directory see ADDING ADJUSTMENTS TO LAST YEAR DIRECTORY page 6
    ***************************************************************************************

    RECORDS THAT WILL NEED TO BE ADDED TO THE LAST YEAR DIRECTORY

    VENDOR INVOICES - After the Last Year Directory has been built invoices received from your vendors dated the prior year need to be added to the vendors file in the last year directory through N. Bookkeeping, B. Enter Invoices. This is done for three reasons:

    1. To post the invoice into the vendors account for last year
    2. To add to the year ending payables total
    3. To accrue the expenses to the correct accounting period

    When a vendor invoice is entered into the last year directory, the system will automatically prompt you to add the invoice into the current year directory, pressing "Y" will copy the invoice to the vendor account in the current year for you.

    NOTE: Payables is the only area that will update the current year directory automatically with changes made in the last year directory. No other area in PTM will automatically update the current directory with changes; the two years are not connected in any other way.

    NOTE: The System Date does not need to be changed to access the old data. When entering records into the "last year" directory (Payable Invoices, etc.,) the invoice date must be in the CORRECT year.

    ADDING ADJUSTMENTS TO LAST YEAR DIRECTORY After you have completed the year-end process, several adjustments will need to be made to your last year balances. (example: bank charges, interest on checking accounts, depreciation, interest on savings accounts, adjustments received from accountant)

    1. Apply Adjustments: Go to Last Years directory; N. Bookkeeping, O. Adjustment Journal. (date adjustments in "last year")
    2. Backup new information: Once adjustments are made to the G/L accounts in the last year directory, do an X Y backup upon exiting the last year directory. This will build a BACKUP.ZIP file to the hard drive (when your final changes are done you will need to re-do your Year-End backup onto a removal media, Disk, CD, Zip-Disk or Tape).
    3. Update existing year beginning totals in current year: Once the final changes are made to the ending totals on Last Year's directory, you will need to update the existing last year totals that are in the current year's directory. Go to the \PTM directory, select N. Bookkeeping, Q. G/L Setup, F. Update last year from \2003-. You will be prompted to move the current ending totals in the \2003 directory into the "Last Year" area (N, Q, C,) of the current year, and year before last (N, Q, D). *This utility may be used as many times as needed when ever changes are made to the last year directory. This utility simply looks at the year-ending totals in the \2003 directory held in N, Q, A, and updates the "Last Year or Beginning" totals in \PTM in N, Q, C, making them identical.
    ***************************************************************************************

    HOW TO BUILD A 2003 DIRECTORY ICON ON THE DESKTOP

    • On the Windows desktop, right click (with mouse) on an empty space to build a new icon.
    • Left click on NEW.
    • Left click on SHORTCUT
    • The screen will show a new box with a COMMAND LINE. In the command line, type the drive directory and execution file into the prompt.

    EXAMPLE: The command line will need to be entered as: C:\2003\PTM.EXE
    (Use the drive letter where the last year's directory is on your system.)

    To find your drive letter, at the main menu of PTM, look in the upper left hand corner, next to the word Data EXAMPLE C:\PTM use the letter on your system (i.e. P:, E:, C:)

    ---

    ***Install PTM program updates to Last Year's Directory to keep structures current*** When the Year-End utility is run, it is recommended to INSTALL the last set of update disks into the LAST YEAR DIRECTORY, this will assure both directories (current & last year) are running the same data structures. To install an update into last year use the Drive and Path for your "Last Year" directory as the install destination. (Use same Drive and Path as written on page 4)

    PAYROLL Year End Instructions

    All Payroll Checks dated prior to January 1st must be purged from the Current Year directory prior to running your first payroll in January – no matter if you are on a Fiscal or Calendar Year.

    *Have a complete backup of PTM on hand before running this process.

    Payroll Year End Utility

    • O. Payroll,
    • F. File Utilities,
    • K. Save and Delete Data by Date,
    • D. Save Payroll to Harddrive.

    You will be prompted with a From Date & To Date (Year Beginning and Year Ending dates for the previous calendar year)—example: if the new calendar year=2004, then the previous calendar year=2003. The system will then prompt "FILES COPIED TO PAYROLL\2003.OLD TO REMOVE RECORDS FROM FILE (X)=NOT REMOVE. The system builds an automatic backup of the payroll data called PAY2003.OLD to the hard drive. *IF AN ERROR 22 APPEARS REMOVE THE WORD "PAYROLL" FROM THE ABOVE PATH*

    1. Press [ENTER] to remove all last year dated checks and payroll records out of the Amend Payroll area.

    Clear all YTD totals in each employee's file

    *This will reset / recalculate all payroll records for each employee for the new year.
    1. O. Payroll
    2. F. File Utilities
    3. P. Zero YTD Balances
    4. H. Update Employee Files with YTD. Enter 1/1/04 into the prompt. The screen will scroll through each employee showing "no payroll found".

    ****THE PAYROLL YEAR END UTILITY AND CLEAR YTD TOTALS UTILITY MUST BE RUN PRIOR TO PRINTING ANY PAYROLL CHECKS DATED AFTER DECEMBER 31st***

    SUGGESTED YEAR END REPORTS

  • SALES LEDGER DETAIL
    All Invoices and Work-orders listed in the Sales Ledger in sequential order - Q. Reports, C. Income/Receivable, N. Sort Options, B. Sort By detail, P. Print.
  • ACCOUNTS PAYABLE
    Detail Account - N. Bookkeeping. E. Reports, A. Accts Payable, A. Payables Invoice Balance, P. Print.
    Detail Summary - N. Bookkeeing. E. Reports, A. Accts Payable, H. Payable Aged Summation, P. Print.
  • BOOKKEEPING *Verify that GL is in balance by checking the below areas before printing Total Distribution report.
    1. N. Bookkeeping, Q. G/L Setup, A. Current Year
    2. N. Bookkeeping, Q. G/L Setup, C. Last Year or Beginning
    3. Have all adjustments done and Payables entered prior to printing below report.
    Total Distribution report - N. Bookkeeping, E. Reports, H. Total Account Distribution Report, A. Run New G/L Distribution, C. Create New, Report All "Y". This report goes through each transaction in each G/L account; this is a large report. Allow the system to take the time needed to print, highly recommended for accountant or auditing purposes.

  BAD DEBT WRITE OFF

  Writing off bad debt in PTM is really pretty simple. The first step is to credit the customer's account through L. Credit Customers for the amount you wish to write off.

• In L. Credit Customers, pull up the account that you need to write off and type "Bad Debt" in the Check#/Memo field. The dollar amount should be a positive amount to credit the customer's account.
• Once you have credited the account the system will put a record in J. Deposits.
• Since the credit is not part of your deposit you will need to do an adjustment to lower your deposit by the amount of the credit.
• Go to the J. Deposit Screen, press A for Adjustment, type in Bad Debt Write off under Name.
• Put in the date you wish to affect the General Ledger.
• Put in the amount of the bad debt write-off as a negative amount.
• When prompted for the offsetting G/L account use your Bad Debt write off general ledger account and press [ENTER]. When prompted if everything is correct press Y.
• You will then be prompted with "Transaction Complete", press any key. The adjustment will now show on your J. Deposit Screen. Mark both records for deposit this should equal zero so that your deposit amount is not affected.

(multiple-stores on PTM)

REMOTE LOCATIONS:

1. Bill out and finalize all Workorders and Invoices that will be counted for "this years" activity, ensure all transactions from the last day of the year have been transferred to the Main Location after doing your deposit. The Remote Locations will also need to process the Year-End Utility and create a new icon—page 6.
2. Clear the deposit screen of all items
   1. Deposit everything you have on the J. Deposit screen; cash, checks, credit cards and adjustments.
   3. Move anything that was not yet paid for to Receivables by pressing 'R'
   4. Run the year-end utility
   5. Follow the instructions on page 4
3. Delete the Sales Ledger, Old Deposits, Payables, and Adjustment Files from the current PTM directory.

1. Verify that all sales records are in your last year directory
2. Use File Utilities Delete file function to remove data and prevent these databases from being transferred to the Main Store after the Main Store closes their year:

1. F. File Utilities
2. C. Delete Records from a data file
3. Arrow down to SALES LEDGER, press [Enter]. iv) Arrow down to STORED OLD DEPOSITS, press [Enter].
4. Continue with both Payables, & Adjustments.
5. B – Reconstruct indexes from all data files

MAIN LOCATION:

Before beginning your Year-End process; verify that all transactions from the remote locations have been processed and your General Leger numbers have been updated with the new activity and are in balance. Once all transactions have been processed from the remote locations follow the steps to process your Year-End Utility (page 4).