Introduction
There are no mandatory year-end procedures in VT Transaction+. You can set the current year to any year at any time by choosing the Set Up>Year Ends command. You can make entries in the new year before you have completed the previous year.
It is possible to change the date of a year-end, or set up year-ends that are not 12 months apart, by choosing the Set Up>Year Ends command.
Behind the scenes
When you first set up a year, VT Transaction+ automatically creates year-end transfer journals (including one for the end of the current year). These journals have a reference beginning with 'YET' and transfer the balances on accounts in profit and loss account ledgers to the cumulative profit and loss account in the balance sheet. The transfers are automatically updated whenever entries are made or changed. The transfers are largely invisible because closing year-end transfers are excluded from reports.
If you need to delete any of these transfers, this can be done by choosing the Set Up>Year Ends command, selecting the year-end and then selecting Delete.
Optional year-end tasks
You are strongly advised to lock the year once your accounts have been finalised. This prevents retrospective entries or changes being made. You can optionally set a password when you lock a period to prevent it being unlocked by an unauthorised user. To lock a period, click on the Lock previous periods caption on the application status bar or choose the File>Lock Previous Periods command.
You may wish to print out or save to a PDF file the ledgers report for the year. This report lists the entries and balances for all accounts. To display the ledgers report, choose the Display>Ledgers Report>Multiple Ledgers command. To print it or make a PDF file of the report, click on the Print button on the main toolbar.
You may also wish to print out or save to a PDF file the transactions report for the year. This report lists all transactions in double entry format. To display the transactions report, choose the Display>Transactions Report command. To print it or make a PDF file of the report, click on the Print button on the main toolbar.
‘Movement’ accounts
Some balance sheet items are split into ‘movement’ accounts. For instance, fixed assets are split into balance b/fwd, additions and disposals. For unincorporated businesses, the capital account is split into balance b/fwd, capital introduced and drawings.
The year-end transfer journals in VT Transaction+ automatically transfer the balances on these accounts to their respective brought forward accounts. You can review or change those accounts that are transferred by choosing the Set Up>Balance Sheet Accounts – Year End Transfers command.
