What is YEP
At the end of every financial year, after closing period 12 with either MEP or MEPACT, the period 13 is automatically opened. This period is the Year End Adjustment period, known as ADJnn. The principal reason for using period 13 is to allow for adjustments to be made to the previous financial year with no restriction on subsequent MEP processes.
‘When to close period 13’ is decided by the company management and the only restriction is the number of fiscal years that can be open simultaneously. When ADJnn is closed, no more adjustments can be made to that financial year.
YEP is the procedure to close the ADJ period. The user interaction is minimal, unless there is outstanding P&L to be cleared for the fiscal year being closed. If the P&L has been previously removed by DOCENT/JNL or YEP itself, the user only needs to click on button to close the Year End Adjustment period (ADJ nn).
If you are creating/saving P&L clearance journals, ensure that the Posting Process is active.
If the P&L has not been previously removed, activation of YEP will prompt the user to create the accounting journals for the removal of the PLR individual balances into Reserves. There is an optional feature to return the non-functional currency balances to the next fiscal years FX Revaluation account. The alternative is for any non-functional currency balances to remain in Reserves and thereby are constantly revalued by subsequent changes in Exchange rates!!!! The help? on the form will assist the user in fulfilling the task. Ensure the Posting Process (RPP) is active to post the journals when they have been created.
Run the Year End Process
There is no specific moment when you must run YEP. Every company decides when they need to close and open their year end adjustment period (ADJ). The only restriction is the number of simultaneously open accounting years permitted. This is a fixed number defined upon ITAS set-up. If wanting to open the new financial year and the limit of open financial years has been reached, you will need to run YEP to close the oldest ADJ period and open new financial year.
On entering the YEP program you can only perform one action: close the oldest open ADJ period. To close the period, press the Click to Close button. The next time this program opens, the button will name the next oldest ADJ period open. (e.g. If you enter YEP and the Click to Close button says Click to Close ADJ 1998, if clicked, the next time you open YEP, the button will read Click to Close ADJ 1999).
Single Currency Clearance
If a company is operating Single Currency, the automated transfer is slightly different to the standard. The local currency balances are removed to B/S with a ZERO equivalence and a single adjustment/equivalence record is posted. If the feature to return non-home currency balances to the PLR is selected, their single currency equivalence values will be zero.