Year End Close

Overview of Year-End Processes

See DeltekVisionYearEndChecklist2016 Attached:

Initialization Utilities

You can run separate initialization utilities to complete the year-end process.  For example, you can open a new year without finishing the old year for Payroll and Accounts Payable purposes.  The following summarizes each initialization utility.

Do not initialize until you review all of the following:

You must perform initialization steps only once. If you perform these steps more than once, it may be necessary to restore a backup copy of your database. The initialization utility displays the date on which it was last run; Deltek recommends that you make note of that date.  When you run the separate initialization utilities, Vision records the process on the Posting Log Review report, located under Transaction Center » Posting Review Report. The entry appears as an AL transaction type, indicating an audit log posting. This information is useful as an audit trail for all changes that updated your database in a specific period. The transaction appears in the period in which the action was performed.

 

Open New Period (Fiscal Year)

Vision keeps track of how many periods per fiscal year were designated during installation. Click Utilities, Period Setup to view the current settings. When the new period happens to be in a new fiscal year, it prompts Vision to set year-to-date reporting values to zero.  Open the new fiscal period at the beginning of the General Ledger fiscal year. Click Utilities » Open New Period.

Do Not Open a Period Until You are Ready to Post to It

Deltek recommends that you do not open a period until you are ready to post to it. Because the new period becomes the current period, you will need to post to the prior period, and run reports and process in the prior period, after you open the next period.

Open New Benefit Year

The Open New Benefit Year utility zeros out all year-to-date benefit hour information (the year-to-date hours earned and year-to-date hours taken). If the benefits are set up to carry over hours to the next benefit year, Vision adds the current year’s unused earned hours to the new benefit year’s starting balances, based on the limits specified.

If the benefit hours are set to pre-accrue at the time that you open the New Benefit Year, Vision adds these yearly benefit hours to the employee automatically. You can accrue benefit hours manually or with payroll processing.  You must initialize for the New Benefit Year prior to posting any timesheets or Payroll for the new year.

Click Utilities » Open New Benefit Year.

1099 Initialization (Accounts Payable users only)

The 1099 Initialization utility resets vendor year-to-date values to zero. The
initialization step transfers the Paid This Year amount for all vendor records to the Paid Last Year field on the Accounting tab of the Vendor Info Center. The Paid Last Year field amounts appear on the 1099-MISC form in box 7.

You must complete all Accounts Payable payment processing and adjustments before running the 1099 Initialization. You cannot process the 2016 1099–MISC forms before initializing a new 1099 year.

Click Utilities » 1099 Initialization.

Open New W-2 Quarter /Year (Payroll Users Only)

Vision keeps track of which W-2 quarter and W-2 year are open. You must perform quarterly initialization at the end of each calendar quarter and at the beginning of the calendar year. The Open New W-2 Quarter/Year utility resets the employee year-to-date Payroll values to zero.

It is not necessary to process the 2016 W-2s before opening the New W-2 Quarter/Year. However, you must complete all Payroll processing and Payroll adjustments for 2016 before opening the New W-2 Quarter/Year.

Processing with Two Fiscal Years Open

Opening Multiple Periods Spanning Different Fiscal Years

Vision makes it possible for you to open, and process in, multiple periods. The open periods can span fiscal years. For example, December 2016 can be open at the same time as January 2017.  Any adjustments made in the old year automatically update balances in the new fiscal year, regardless of when this occurs. You can open January without completing all of the December processing first, allowing you to begin processing January transactions before closing the December period.

Accounts Payable Payment Processing in the New Fiscal Year

When two fiscal years are open, you must complete all Accounts Payable payment processing and Accounts Payable disbursements before running the 1099 Initialization utility for the new 1099 year. Once the new 1099 year is open, then it is possible to enter new Accounts Payable payments and Accounts Payable disbursements for the 2017 processing year. This ensures that the year-to-date figures are properly updated for the vendors. It is possible to create and post new Accounts Payable vouchers as usual with two fiscal years open.

Payroll Processing in the New Fiscal Year

When two fiscal years are open, you should complete all Payroll processing and
Payroll-related adjustments for 2016 in W-2 year 2016 before running the Open
New W-2 Quarter/Year utility for the new W-2 year. Once the new W-2 year is
open, then it is possible to enter new Payroll payments for the 2017 processing
year. This ensures that the year-to-date figures are properly updated for the
employees.

Opening the New Period / Fiscal Year

Prior to Opening the New Period / Fiscal Year

Make a year-end backup before opening the 2016 fiscal year. Label it clearly
(including the Vision version number) and keep it permanently on file. Consider
storing an additional copy of the year-end backup off-site.

Perform the Open New Period/Fiscal Year step only once. If you perform this step more than once, it will be necessary to restore to a backup copy of your database. The Open New Period /Fiscal Year utility displays the date on which it was last run; you should make note of this date.

Areas That Reset to Zero after You Open a New Fiscal Year

Areas that reset YTD values to zero after you open a new fiscal year include the following:

  • Time Analysis report
  • Project reports for overhead type projects
  • Overhead Allocation calculation for the new year
  • Year-to-date figures on the Key Financial Metrics reports
  • YTD values on accounting reports, such as the Cash Journal or Check Register
  • Income Statement accounts close out to the prior year’s Retained Earnings account on the Balance Sheet.
  • When you open a new fiscal year, the year-to-date totals zero or are cleared out. However, the transactions are not gone. You can go into the prior period / year and run reports to see the prior year totals.

Open the New Period/Fiscal Year

To open the New Period / Fiscal Year, complete the following steps:

  1. Click Utilities » Open New Period.
  2. If the current period open is the last period in the fiscal year and you open a new
    period, Vision displays the following warning “if” you are using a Period 13.

 

If not, or after this period is opened you will see this warning:

 

WARNING – You are currently in fiscal period 12 of 12 for the year 2016. If you continue, you will open the first fiscal period for the year 2017.

Open New Benefit Accrual Year

To open the benefit accrual year, complete the following steps:

  1. Click Utilities » Open New Benefit Year. Vision displays a dialog box that lists the current benefit accrual year and the new (next) benefit accrual year:

 

  1. After you verify the dates, click OK.

Run the 1099 Initialization Utility

You can run the 1099 initialization while in the December 2016 accounting period or the
January 2017 accounting period.

To run the 1099 Initialization utility, complete the following steps:

  1. Click Utilities » 1099 Initialization.
  2. After verifying the most recent 1099 initialization run, click Initialize.
    The following message displays:

Click Yes to continue Initialization.

Opening a New W-2 Quarter /Year

You must open a new W-2 quarter/year after the last Payroll and all benefit adjustments of 2016 have been completed, and before processing the first Payroll of 2017.

You must open a New W-2 quarter/year to track any data accumulated by Vision Payroll. When you do so, Vision resets all employees’ year-to-date Payroll information to zero and starts tracking Payroll data for the new calendar year.

Perform the Open New W-2 Quarter/Year procedure only once. If you perform this step more than once, it will be necessary to restore from a backup copy of your database. The Open New W-2 Quarter/Year utility displays the date on which it was last run; please make note of that date.

Multicompany

You must run the Open New W-2 Quarter/Year utility separately for each company. This utility only initializes for the active company. See the Vision Online Help for more information.

To open a new W-2 Quarter/Year, complete the following steps:

  1. Click Utilities » Open New W-2 Quarter. Vision displays a dialog box reflecting the current and next applicable W-2 Quarter/Year. See the example below.
  2. After verifying the dates, click OK.

 

 Year-End Steps Summary

  • Backup before opening your new fiscal year
  • Open New Fiscal Period/Year – If using a 13th period for Audit/Year End Adjustments be sure to open 201613 (Period 13) prior to opening 201701 January 2017. 
  • Open new Timesheet Periods
  • Open the New Benefit Accrual Year
  • Process all of your transactions for month end and 2016 year end
  • Run final Overhead Allocation for 2016 (if applicable)
  • Run final Revenue Generation for 2016 (if applicable)
  • Run final Adjust Salaried Job Cost for 2016 (if applicable)
  • Run final Consultant Accruals for 2016 (if applicable)

FAQ’s

Q – Can I have December and January periods open at the same time?

YES – You can have December and January periods open at the same time.

– Can employees enter time in January even if I am not ready to open the
January period?

YES – You can have your 2017 timesheet periods open and employees can enter
their time, you just can’t post them until you have opened the January 2017
accounting period.  You would setup the timesheet periods in Configuration
> Time & Expense > Company Timesheet > Timesheet Calendar tab.

–  After opening the new fiscal year, there are no longer any year-to-date values
for the overhead projects. Why?

The year-to-date amounts for overhead projects reset to zero once the Open New
Period utility has been run for the new fiscal year. To see prior year Overhead Project Information;  Go to the prior period / year  then  Run the Project Detail report, the previous year’s values will be visible.

More helpful information on Year End processes in Deltek Vision is available at
the Deltek Year End Info.

 

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