General > Prolongation bookyear

Creating a new bookyear for an administration can be done via menu Bookkeeping > Creating a new bookkeeping > New bookyear.

In the Trust-version of Mill7 there are two extra options available:

1.All service companies

2.Current service company

If option one is selected, all service companies will be prolonged.

With option two a single service company can be prolonged.

In Mill7, data is saved per bookyear.

During Prolongation first a copy will be made from the old year.

For example: in case of bookkeeping 1 bookyear 2013 B0000113 will be copied to B0000114.

The old bookkeeping remains unaffected during the prolongation process. Changes will be made only in the new bookkeeping.

After creating a new bookyear, the rights for this year will be the same as for the previous bookyear..

Some functions are no longer available in the old bookyear after a prolongation, like:

- writing time

- invoicing time, disbursements and fees

- allocating draft invoices

It is therefore advisable to create the new bookyear only after all time is written and after the draft invoices are processed.

To be sure there are no differences in the old bookyear which can affect the new bookyear it is important to check the old bookkeeping via menu Supervisor> Book> Recalculate bookkeeping totals.

By using foreign currencies the old bookkeeping has to be revaluate first before the new bookyear is created.This can be done by menu Bookkeeping> Financial> Revaluate.

Clean up data

In the new bookkeeping certain files will be cleaned up in the new year. For example relation management changes, journal entries, time, etc. By cleaning up, files will be smaller which concludes that reports remain fast. After cleaning up, debtors, creditors and general ledger accounts can be deleted if related time, journal entries and invoices are missing.

Events at relations will also be cleaned up. Events with a date completed are not copied to the new bookyear unless in the settings the option 'Keep completed events on prolongation' is set.

Journal entries

At prolongation balances of the old bookyear will be transferred to daybook Opening balance of the new bookyear. This daybook must have 'BB' as code and 'Opening balance' as type.
The result profit and loss of the old bookyear will be booked in the new bookyear on the general ledger defined in the settings.

It is possible to make changes in the old bookyear after prolongation.

By using the function Bookkeeping> Financial> Opening balance> Copy opening balance the opening balance for the new bookyear can be re-created by using the changed data in the old bookyear.

Assets

Assets with the status Removed are not copied to the new bookyear.

At prolongation the book value off all assets in the new bookyear will be set as per end date of the previous bookyear.

The value of the assets in the previous bookyear will not change.

When the depreciation in the previous year has not been done Mill7 will calculate the book value opening bookyear itself and also sets the date written down until at end previous bookyear.

There will be no journals booked. If assets have not been written down in the previous bookyear, those write downs can still be made.

If the assets are written down afterwards, the real book value opening bookyear can be recalculated in the new bookyear by using the function "Copy book value assets of previous bookyear" in menu Bookkeeping> Financial> Assets. This function also will count the depreciations already made in the new bookyear.

Time

At prolongation, only time will be transferred which meets the following conditions:

- Time with status "Y" or "L"

- Time with a date in the new bookyear

- Time invoiced at an invoice dated in the new bookyear

Extra attention for the following three situations.

1.Time not to be invoiced.
At debtor can be set if written time on the concerning debtor must be invoiced. If set that time must not be invoiced, time will not be prolonged to the new bookyear, regardless of the invoice status.

2.Approve time and internal report about the month December.
To invoice, it is no problem that partially time of, for example December 2013, is written in the old bookyear and partially in the new bookyear 2014. At prolongation, all time to be invoiced will be transferred to the new bookyear.
This is different for approving time and internal report of time registration of the concerning bookyear.
Time with status 'N' will not be transferred to the new bookyear. If, at prolongation, time registration is not up to date at the end of the year (e.g. 31-12-2013), no correct reports can be made of the concerning bookyear. After prolongation it is impossible to write time in an old bookyear.
In case of approving time, problems may exist because for example the half of time of a certain day is written in the old bookyear and the other half in the new bookyear. This makes it impossible to approve time for that day.
To avoid this, it is advisable only to prolongate after all time writers entered and approved all time for the old bookyear.

3.Time related to draft invoices.
Time related to draft invoices are prolonged to the new bookyear as free time because draft invoices are not prolonged.

Invoices

At prolongation only invoices which meet at the following conditions will be transferred:

- Booked invoices that have not been paid.

Notes attached to outstanding invoices will be transferred as well.

Draft invoices are not prolonged to the new bookyear.

Time and Fees related to a draft invoice are deallocated when the new bookyear is created.

After prolongation, no time invoices can be created in the old bookyear. It is still possible to make invoices manually and also credit invoices can still be made. Such created outstanding invoices can be transferred to the new bookyear by using the function "Copy opening balance". The invoices itself will not be transferred to the new bookyear.

Invoicing upcoming bookyear

When in the old bookyear the option Invoicing upcoming bookyear has been used the journal entrys regarding these invoices will be made in the new bookyear.

Invoice number

When in the old bookyear at service company an invoice number has been entered this number will be used in the settings for the new bookyear.

Portfolio

At prolongation portfolio transactions will be created in daybook Opening Balance.

The value of the different stock is based on the latest market price (revaluation). The transaction receives the status booked.

Changes can still be made afterwards in the previous bookyear.

By using the option Create transactions opening balance last year in the menu Bookkeeping> Portfolio the opening balance of Portfolio will be cleared and re-created on the basis of the previous bookyear.

However profits can be shifted by doing this because of the FIFO method.

By using the option Recalculate Portfolio from the menu Supervisor> Portfolio the complete portfolio administration can be recalculated.

After recalculation it is advised, when using the bookkeeping module as well, to check for differences between the Portfolio administration and the results in the bookkeeping .