Year-end process
Because the year-end is a task that is only carried out once a year, a pre-defined PANTHEON workflow is used for this purpose.
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HINT
For more information on what a workflow is, see the chapter Workflow.
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CASE SUMMARY
Ashley Accountant, Head of Finance and Accounting at Tecta, is about to close the 2021 fiscal year. To help her close this year and open a new one, she will use a workflow that will guide her through the tasks. She does this as follows:
- Transferring the workflow from the server
- Running the workflow
- Automatic posting check
- Closing classes 4 and 7
- Trial balance
- Closing and opening of the fiscal year
- Trial balance
- Company balance sheet
- Account card
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1. Transferring the workflow from the server
First, the person responsible must transfer the workflow DE_YearClosure to PANTHEON.
This is done in the menu Settings | Documentation | Workflow design.
2. Running the workflow
Once the workflow has been transferred, the person responsible can search for it in the window Workflow design.
This is done in the toolbar using the navigation buttons, where the workflow DE_YearClosure is selected.
The Year-end workflow structure shown in the image below opens.
The person responsible starts the process by clicking the button 
(Run workflow).
A pop-up window with the following question appears: Do you want to run workflow "DE_YearClosure"?
The workflow start is confirmed by clicking the button .
PANTHEON guides the person responsible through the workflow steps.
3. Automatic posting check
The program automatically opens the window Summary reports, tab Automatic posting check.
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HINT
The yellow banner under the menu indicates that the person responsible is being guided by the workflow.
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The mandatory fields are marked with a red vertical line.
The person responsible then completes the fields Date from/to by selecting the posting date period, in this case from 1.1. to 31.12.2021.
In the section Date criterion, the program automatically enables the radio button VAT date, which indicates a check by the VAT date criteria on the documents.
In the section Document types – automatic posting, the person responsible then checks all document types for which the control of automatic posts should be carried out.
In this case, the person responsible selects all documents by right-clicking in the section and selecting the option Select All.
The same procedure is repeated for Document types – material consumption.
Clicking the button Search creates an overview of the messages and errors that appear in the panel below.
Once the errors have been corrected, the person responsible clicks the button Continue to proceed to the next workflow step.
4. Closing classes 4 and 7
The program automatically opens the window 300 - Closing class 4 and 7 to close classes 4 – Expenses and 7 – Income.
At the year-end, account classes 4 and 7 must have a balance of 0.
PANTHEON uses a pre-defined posting template which closes class 4 accounts and does not transfer them to expenses, while expenses and income are not reposted to profit and loss accounts.
In the field Posted from/to, the person responsible selects the date from 1.1. to 31.12.2021.
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HINT
The start date is usually the first day of the fiscal year closed. By default, the program sets the first day of the year, which is marked in the program parameters as the date of opening of the general ledger. The same principle applies to the end date.
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The settings Posting type are left as set by the program automatically.
Document type is based on the settings defined in the Document types register. The default journal entry is entered into the posting template.
In this case, the field is populated with the document type 4799 - Close classes 4 and 7.
If the person responsible wants to append the closing of classes 4 and 7 to an existing journal entry, the person responsible must enable the radio button Append.
To post the closure, the button Posting is clicked.
The journal entry window 4799 - Close classes 4 and 7 and the associated posts open automatically.
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HINT
If a journal entry is not balanced, the person responsible manually balances it here by posting to the account 8000 - Profit or loss before tax.
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The person responsible goes back to the window 300 - Closing class 4 and 7 and confirms the task.
By clicking the button Continue, the person responsible proceeds to the next workflow step.
4. Trial balance
The program automatically opens the report window Trial balance.
In this step, the person responsible enters the report criteria.
In the fields Date from/to, the start and end date of the fiscal year are selected, in this case from 1.1. to 31.12.2021.
In the section Document types, the checkboxes of the document types for general journals or journal entries are checked for which the trial balance report is to be created.
The person responsible selects the Report type and clicks the button Report.
In this case, the person responsible selects the report type 052 - Trial balance – analytic accounts 1.
The trial balance is displayed that must be balanced.
In this step, the person responsible checks whether the accounts in the previous step of closing classes 4 and 7 have indeed been closed.
To proceed to the next workflow step, the person responsible clicks the button Continue.
5. Closing and opening of the fiscal year
The window Year-End opens automatically.
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WARNING
Creating the fiscal year closing and opening in this module is a prerequisite for the program to work properly in the coming year.
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The number in the field Number is generated automatically by the program. The number format corresponds to the document numbering settings in the Administration Panel.
In the document header, the information on the fiscal year is entered into the fields Date from/to, in this case from 1.1. to 31.12.2021.
The fields Closure Doc. Type and Opening Doc. Type are populated automatically.
The fields are populated with data based on the settings in the Administration Panel | Financials.
5.1. Preparing the scenario
The person responsible clicks the button Prepare scenario.
A notification window is displayed: The chart of accounts and the scenario have been harmonized.
The the chart of accounts is transferred into the tab Scenario, as shown in the image below.
5.2 Checks
In this step, the person responsible performs the checks to review potential errors in the section Checks.
Several checks are available in this tab. The desired checks are selected by checking the checkbox next to the consecutive number of the check.
Once the desired checks have been selected, the button Perform checks is clicked.
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HINT
For more information on checks, see the chapter Checks.
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5.3 Errors
The program automatically opens the tab Errors where the person responsible can review and correct the errors.
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HINT
For more information on errors, see the chapter Errors.
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5.4 Creating the closing and opening journal entry
The person responsible creates the closing and opening Journal entry.
Closures for individual account groups can either be created separately for each group of accounts or a closing and opening entry can be created for all three groups of accounts. This can be defined by selecting the following options in the section Posting of the document header:
- 1 - Subsidiary accounts
- 2 - Linked document
- 3 - General ledger
In this case, the person responsible checks all three checkboxes to create a closing and opening journal entry for all three groups of accounts.
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HINT
For more information on how create the closing and opening journal entry, see the chapter Journal entries.
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The opening and closing entry for the selected groups of accounts are created by clicking the button Prepare Clsr./Opng..
A window is displayed informing you about the created journal entries.
The person responsible clicks the button Confirm and the lines with created journal entries are created on the tab Journal entries.
The person responsible proceeds to the next workflow step by clicking the button Continue.
6. Trial balance
The program automatically opens the report window Trial balance.
The trial balance provides the person responsible with an overview of all the company accounts and enables the person responsible to verify that the debits and credits are reconciled.
In this step, the person responsible enters the report criteria.
In the fields Date from/to, the start and end date of the fiscal year are selected, in this case from 1.1. to 31.12.2021.
In the section Document types, the checkboxes of the document types for general journals or journal entries are checked for which the trial balance report is to be created.
The person responsible selects the Report type and clicks the button Report.
In this case, the person responsible selects the report type 052 - Trial balance – analytic accounts 1. The trial balance is displayed.
The person responsible proceeds to the next workflow step by clicking the button Continue.
7. Company balance sheet
In the final step, the person responsible creates a report showing the company Balance sheet.
The balance sheet shows the financial position of the company at a given date of the year or, more specifically, its assets and the sources of those assets.
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HINT
For more information on the module Reports | Financial reports, see the technical guide chapter Balances.
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The person responsible fills in the fields relating to the Period.
In the fields Target date from/to, the start and end date of the period are selected, in this case from 1.1. to 31.12.2021.
The person responsible selects the Report type and clicks the button Report.
In this case, the person responsible selects the report type 051 - Financial report, a common balance sheet report with current period values.
The person responsible proceeds to the next workflow step by clicking the button Continue.
8. Account card
The final step of the workflow is to create an Account card.
The program automatically opens the window for creating an account card report.
In this step, the person responsible checks that the balances of the Class 4 – Expenses and Class 7 – Income and expenses accounts are equal to 0.
In the window automatically opened by the program, the person responsible fills in the report criteria.
In the field Account, the account is first selected for class 4, as shown in the image below.
In the fields Target date from/to, the start and end date of the period are selected, in this case from 1.1. to 31.12.2021.
By right-clicking in the section Document types in period and selecting the option Select All, all document types are selected.
In the section Report type, the person responsible selects 32I - Account card - grouped.
The same procedure is repeated for account class 7 – Income and expenses.
By clicking the button Finish, the workflow is completed.