Transfer income and expense balances

WizCount is a multiannual software. The new year’s transactions are added to the transactions of the previous years. This has several advantages:

  • By issuing a statement of customers, vendors, etc. (Balance Sheet Cards) you can see all the transactions over several years.
  • Reports can be issued to compare different periods (e.g. March sales compared to March sales in the previous year).
  • At the end of the year, there is no need to perform a Year-End Transfer to the next year.

The only thing that needs to be updated following the Yearend Routines (or quarter-end routines) is transferring the resultant cards (income and expenses) balances against a Surplus Card. Profit or Loss is transferred into a Surplus card, and the Income and Expenses Cards are restarted from a zero balance.

This transfer is done through the section called Transfer income and expense balances on the Accounting Menu.

When you activate this section, the software records, for each income or expense card, a journal entry that resets the card balance and transfers it to a Surplus Account. The transactions are recorded in Batch number 9998. As in batch 9999 (the batch in which transactions are recorded for Marketing and Purchase documents issued by the software), transactions in this batch are recorded directly into the fixed file. The journal entries are recorded in Debit Only / Credit Only Transactions (single entry transactions to the credit or debit of each of the income and expense cards, and an additional single entry transaction to the credit or debit of a Surplus Card).

No transfer is required at the end of the last day of the year. You may proceed with work as usual, and wait to perform the Yearend-Routines until after the previous year’s checks and reconciliations have been completed. If after the Yearend Routines, transactions are still recorded for the previous year, the Yearend Routines must be repeated. WizCount will record the appropriate corrective entries.

Before you activate the Year-End Transactions section, some data needs to be updated (on the General Data –Year-end routines page).

 

 

After selecting the Year-end Transactions section, WizCount will display the Transfer income and expense balances page.

 

Income and expense account balance for date: This field displays the date set in the Company settings. This date can be corrected. Usually, the date should be 31.12 of the year that is being closed in the Yearend Routines, but anyone working on a quarterly basis can select the end of each quarter.

Surplus Account: The Surplus Card Account Key as defined in Company settings. You can enter another account provided the card’s Main Account is Surplus.

Details for accounting transaction: These fields contain the Dates and References that will be recorded in the Year-end journal transactions. The default values are retrieved from the company settings. Dates can be corrected and references may be added as needed.

Pre-Transfer Report: Year-End Transactions record journal entries in the fixed file. If an error is detected (for example, an incorrect date) after the journal transactions have been recorded, a cancellation must be performed and the cancellation will record additional journal transactions. To avoid such mistakes, we recommend that you prepare a preliminary report showing the results of the Yearend Transfer operation (without performing the actual transfer). This report can be used to detect and correct errors before performing the Yearend Transfer operation.

 

Finally, select the Issue button. WizCount will record the transactions and return to the main screen.

This function cannot be activated if there are batches in a temporary file containing transactions which belong to the tax year for which the Year-End Transfer is made. If WizCount detects such batches, the following message will be displayed: “There are batches in the temporary file at an earlier date than the transfer date. These batches must be posted prior to running this operation.”

 

 

Repair Yearend Routines

 

As mentioned previously, Yearend Routines can be re-run in order to correct balances created due to actions recorded for the previous year after Yearend Routines have been completed.

WizCount will display the list of previous transfers:

 

 

In the Transfer Status field, the software records “Balance transferred for specified date” or “Transactions added after this date must be transferred again”. The second status indicates that after running the Year-End Transactions programme for a specific date, journal transactions were recorded for the previous period. In this case, the Year-End Transactions programme should be re-run for the date in question. For example: The Year-End Transactions programme was run for 31/12/2020. When completed, the Status field stated: “Balance transferred for specified date”. Afterwards, transactions were recorded for the period prior to 31/12/2020. The software replaced the text with “Transactions added after this date must be transferred again”. As a result, the year-end transactions programme was run again. The general rule is: On any date for which the year-end transactions programme is run, the last record should state: Balance transferred for specified date.

Cancel Recent Yearend Transfer – You can cancel the journal transactions recorded in last yearend routines. WizCount will copy the transactions of the last Yearend Transfer and change the amount sign (a positive amount will be recorded with a minus sign, and vice versa), however, this option is not recommended. It is best to run the Year-End Routines program again (and then the program will record additional Year-End transactions).

 

 

Year-End Transactions In Reports

 

When issuing reports and statements, you can determine how Year-End Transactions should be displayed. When you design a report using the Accounting Balance Designer, and select the Balance column, WizCount will display the Year-End Transactions section, where you can choose one of the following options:

Include Year-End Transactions: When this option is selected, the resultant cards opening balance for the last (or current) year/period will be 0.

Exclude Year-End transactions: The report will ignore Year-End transactions. For example, you may use this option to issue a sale cards report for the period of October 2020- February 2021 (and therefore to ignore the Year-End transactions recorded at the end of December 2020).

Include Year-End Transactions Until (Date): The report will ignore year-end transactions after this date. For example, you can use this option when Year-End Routings have been completed for 2020, but you want to view the 2019 Loss and Profit Statement. (If Year-End transactions from end of December 2019 are not ignored, the income and expense card balances will be zero).

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