Close financial year (Annual report) (Beta)

Modified on Mon, 7 Oct at 1:28 PM

Disclaimer

All screenshots in the article were taken in the Dutch version of Yuki.

Only a user with the 'Portal back office controller' role, 'Back office controller' of the domain or the 'External accountant' role can close a financial year.

Before you can prepare the Annual report you have to go through a number of steps in Yuki:

Check completeness of administration(s)
Monthly check
Check completeness of VAT returns and payroll tax assessments
Block administration as of closing date
Format of trial balance
Review trial balance
Fixed assets
GL account and editing features (invoice actions)
Check balance sheet items as of closing date
Year-end closure of VAT
Private GL accounts
Profit appropriation
Reconciliate commercial figures with fiscal figures
Check markings
Close administration as of closing date
Export to reporting software.

1. Check completeness of administration(s)

The completeness of the administration in Yuki must be checked.

With the help of the Workflow tile or the Workflow indicator a list is opened of the domains that contain documents, bank transactions and questions that still have to handled.

Open the domain of which you want to check if the data of the administration(s) is complete by clicking on > in front of the domain name.

The following screen is opened:

The customer should be informed about the above indictors that need attention and must be requested to complete the administration by:

submitting the missing bank transactions, purchase invoices and sales invoices
giving an explanation of the 'Vraagposten'
actions related to unprocessed documents.

2. Monthly check

Each month the administration must be checked for the following:

Inconsistencies
Bank
Completeness of bank
Suspense accounts
Completeness of purchase
Completeness of sales
Completeness of unclear transactions
Debtors
Creditors
Tax authorities
Salaries to be paid
Payroll tax
CA employees
CA companies
Duplicate invoices
Contacts check
Deleted transactions.

The check will be performed from the Checklist of the portal back office.

3. Check completeness of VAT returns and payroll tax assessments

The presence of all VAT returns and payroll tax assessments in the administration must be checked. All VAT returns must have the 'Historical' or 'Closed' status. The VAT supplement may have the'Draft' status, however before the closure of the financial year the VAT supplement has to be processed 'historically' or send to the tax authorities.

Hover your mouse over the Financials icon in the navigation bar and then click on VAT return or on Payroll tax assessments in order to check the VAT returns and the payroll tax assessments.

4. Block administration as of closing date

Hover your mouse over the Financials icon in the navigation bar and then click on Trial balance.

Select the relevant financial year (or other period) in the calendar. Then click on the Block or close administration button.

In the now-opened screen, in the Block section, select the last day of the period you want to check, up to and including this date the administration will thus be blocked.

Then click on the Save button.

Once an administration is blocked, a blue bar appears at the top of the screen showing the date through which the administration was blocked.

By clicking on the Edit link in the blue bar, the check status can be changed at any time.

ATTENTION!

At the time you want to block a financial year of an administration that serves as a Fiscal unity, all VAT returns of all administrations that are part of the Fiscal unity must have the status “Historical” or “Closed.
A user with the 'External Accountant' role can block the administration not from the trial balance but from the domain settings.Click on the Settings icon in the navigation bar and then, in the now-opened screen, under the Domain heading click on Block and close.

The administration is now blocked for changes made by all users without the 'Portal back office', 'Back office controller' role in the domain or the 'External accountant' role.

As soon as the closure of the financial year is finalised the financial year can be closed in Yuki so no user is able to make changes in the closed financial year anymore.

5. Format of trial balance

The trial balance is composed as follows::

Opening balance: opening balance Debit and Credit
Transactions: current balance debit and credit mutations
Closing balance: balance end of period Debit and Credit.

One GL account is shown per line. In the Balance review column you can track the status of the GL account.

You can choose from the following views from the View dropdown menu:

End of year entries: Show or hide the end of year entries.
RGS (Reference General Ledger Schemes): Show the linked (mapped) RGS codes and RGS descriptions (RGS Reference General Ledger Schedule)
GL accounts with € 0,-: Show or hide GL accounts with a closing balance of €0.00.

6. Review trial balance

You can now start with the correction and the completion of the trial balance.

By clicking on a GL account it will be opened. In the GL account you can click through to the entries of the purchase and sales invoices, bank transactions and general journal entries. You can check the entries and correct them if required.

Assess outstanding items

The outstanding items on 'Creditors' and 'Debtors' GL accounts must be assessed. This means among other things that the outstanding foreign currency invoices also need to be revalued.

TIP!

All foreign currency bank accounts also have to be revalued.

Click on the Outstanding transactions button. The following screen is opened:

Track GL accounts status

Per line, you can track the status of the GL account by making comments, linking documents from the archive and by marking the GL account as checked.

To start reviewing the GL account, hover your mouse over the line of the corresponding GL account, click on the button with the three dots and select the menu option Review from the dropdown menu.

The following screen is opened:

In this screen you can:

add comments to the GL account
attach documents from the archive to the GL account. For example, documents about loans or the asset statement
mark the ledger account as checked
view the history.

Fro a detailed description, see article 'Trial balance check' feature.

After marking the GL account as checked, a green check mark appears in the Balance review column. If a red cross appears after a general ledger line then corrections have been made after a GL account has been marked as checked.

TIP!

When you hover over this green check mark, a pop-up appears showing the name of the user who marked the GL account as checked, the date and time of this check, and the balance of the GL account.

The pop-up that appears above a red exclamation point indicates what has been changed.

The general ledger accounts VAT (18...) and private (05...) are not completed until the following conditions are met::

All other items in the trial balance are marked as done.
The status of the VAT supplement is set to 'Historical' or has been sent to the tax authorities.

7. Fixed assets

This fixed asset statement is not suitable for tax applications such as reinvestment reserve and random depreciation. In addition, the presentation possibilities are limited. You can find the statement of assets by:

hovering your mouse over the Financials icon in the navigation bar and then click on Assets
clicking on > in front of the relevant investment account, from the trial balance.

8. GL account and editing features (invoice actions)

From the GL account you can change or post-edit it. Hereby you can use for example the following options:

Record accruals
Spread over periods
Change GL account
Change VAT rate.

You can use these options by clicking on the pencil icon at the end of each line on the GL account card.

In an opened purchase or sales invoice you can also perform an action on an invoice by clicking on the Invoice actions button.

9. Specification of balance sheet items as of balance sheet date

The Financials functionality consists of, among other things, the following parts:

Assets and liabilities
Customers (Debtors)
Suppliers (Creditors)
CA employees.

Assets and liabilities

In the Assets and liabilities part it is possible to retrieve a specification as of closing date of each GL account for example:

13200 To be invoiced
13300 Deferred charges
16100 Invoices to be received
16150 Deferred income.

At the top of your screen you can enter the balance sheet date. It is then possible to change the On-screen version to a version that can be printed as a PDF document namely Printable version or Printable version (extended).

Debtors, Creditors and CA employees

After opening the Debtors, Creditors and CA employees it is possible to retrieve the specifications of the balance sheet balances as of the balance sheet date. The balances are represented here by supplier/invoice. The balances of the specifications reconcile with the balances of the trial balance.

At the top of your screen you can enter the balance date. It is then possible to change the On-screen version to a version that can be printed as a PDF document namely Printable version or Printable version (extended).

10. Year-end closure of VAT

You have to go through a number of steps:

Close all VAT returns (set the status to 'Historical' or send to the tax authorities)
Block the administration
Set the general ledger accounts VAT to zero
Close, if required. the administration.

Close all VAT returns

All items in the trial balance except the VAT (18...) ledger accounts are marked as done.

Now you can check the VAT supplement and set the status to Closed (Historical) or send it to the tax authorities:

Open the VAT supplement
Click on the Small trader scheme button (only available in personal company form).
The KOR will now be calculated and if applicable automatically processed in the trial balance.

ATTENTION!
The 'Small trader scheme' button only appears when the KOR is applied before 01-01-2020.
Now click on the Historical or Send button.

The VAT supplement is now closed.

The bank transaction of the payment or the direct debit has to be matched with the VAT supplement.

Set VAT general ledger accounts to zero

Now the balances of the VAT (18...) general ledger accounts have to be recorded on '18990 VAT returns transfer account' ledger account. This cannot be done via a (regular) general journal entry because then a new VAT supplement will be created.

For each VAT general ledger account you have to go through the following steps:

Go to the Trial balance
Open '18000 VAT on supplies/services taxed at high rate' ledger account
Click on the [0] Record balance to 0 button (this feature is only available when the financial year is blocked).

Now the balance as of the balance sheet date will be recorded in a so-called 'year-end correction' on '18990 VAT returns transfer account' general ledger account. A synonym for year-end correction is 'period 13'. This entry will not appear in the trial balance of the current financial year. This entry will be recorded directly on the opening balance of the new financial year.

Now check if all VAT (18...) general ledger accounts in the trial balance of the new financial year are reconciled.

The balance of '18990 VAT returns transfer account' general ledger account as of the balance sheet date should match with the outstanding VAT returns as of balance sheet date..

11. Private GL accounts

The private (05...) general ledger accounts must now be recorded on the '05000 Capital' general ledger account.

For each private general ledger account you have to click on the [0] Record balance to 0 button (this feature is only available when the financial year is blocked).

12. Profit appropriation

After a financial year is blocked Yuki will automatically record the result on the '09000 Undistributed results of previous financial years' balance sheet account. You can then record the profit appropriation via a special general journal entry namely the end-of-year correction. Via a year-end correction you can for example write-off the undistributed results to the general reserve or the capital.

Hover your mouse, if necessary, over the Back office or Financials icon in the navigation bar and then click on General journals. The following screen is opened:

Click on the End-of-year correction button in order to record the year-end correction.

TIP!

Depending on the reporting software that is used the profit appropriation can also be recorded via a regular general journal entry in the previous year.

13. Reconciliate commercial figures with fiscal figures

A fiscal correction allows you to make the reconciliation from a commercial to a fiscal balance sheet and a fiscal profit and loss account:

Hover your mouse over the Financials icon in the navigation bar and then click on General journals.
Click on the Fiscal correction button.

Then record the entry of the fiscal correction.

In the trial balance the commercial or a fiscal view can now be chosen. The 'Assets and liabilities' and 'Revenue and costs' overviews will change automatically depending on the selected view.

14. Check markings

Now check whether all GL accounts in the trial balance are marked as checked (green check mark).

If a red exclamation mark is shown behind a general ledger line then corrections have been made after a GL account has been marked for approval:

Hover your mouse over the line of the corresponding GL account, click on the button with the three dots and select the menu option Review from the dropdown menu.
In the now-opened screen click on the link Review again
If the correction is approved click on the button Save.
If the correction is not approved, remove the Checked mark and make the necessary changes.
After approval you can mark the GL account as checked again.

15. Close administration as of balance sheet date

After the closing of the financial year is completed, the financial year can be closed so that no user can make changes.

ATTENTION!

The moment you want to close a financial year of an administration that serves as a Fiscal unity, all VAT returns of all administrations that are part of the Fiscal unity must have the status 'Historical' or 'Closed'.

Click on the Edit link in the blue bar at the top of the screen.

In the now-opened screen, in the Close section, select the last day of the period you checked, up to and including this date the administration will thus be closed.

Then click on the Save button.

Once an administration is closed, a blue bar will appear at the top of the screen showing the date through which the administration was closed.

The administration is now also blocked for corrections of all users with the 'Portal back office controller' or 'Back office controller' role in the domain or the 'External accountant' role.

16. Export to reporting software

Hover your mouse over the Financials icon in the navigation bar and then click on Export in order to export the trial balance to your reporting software.