TRAVERSE Global v11.1

Update Current Year

After you clear and close the revenue and expense accounts for a company, use the Update Current Year function to transfer the ending balances from last year to the beginning balances of the current-year. You have the option of consolidating unclosed income/loss into a single retained earnings account, or you can use the Clear To account as defined for each account.

The function accomplishes the following:

• Updates beginning balances for general ledger accounts with account types between 005 and 465.
• Calculates the net income or loss amount from the balances of all accounts with account types between 500 and 890.
• Updates the retained earnings account balance with the net income or net loss (if the option is selected).

Because this function updates only the beginning balances of the accounts in the current-year without requiring you to clear and close, you can easily bring forward initial balances at the start of a new year without closing last year's accounts. For example, if closing the previous year takes you into the second month of the current year, and you must make adjusting entries daily and still need to produce the financial reports for the first month of the current year, you can get the latest balances by using the Update Current Year function to update only the current year's beginning balances. The "Clear To" account identified for each GL Account will be used as the retained earning account when updating the beginning balance amounts.

If you change the last year’s balances, use the Update Current Year function as necessary to update the current year’s beginning balances with the changes made to last year’s balances.

If you use multicurrency, you can clear unclosed income/loss amounts to a currency-specific retained earnings account. This will only update the beginning balances, and will not generate any Journal entries. If you use different currencies for Sales and COGS accounts, you can move balances into a currency-specific retained earnings account as a step in your process.

If you do not use multicurrency, you can utilize different retained earnings accounts for various groupings of accounts, such as departments, divisions, funds, etc.

Note: If you choose to both clear and consolidate unclosed income/loss accounts to retained earnings, the retained earnings account you selected will only be updated from accounts that do not have a Clear To account specified.