The Rollover of the financial year is a complex transaction that requires preparation and time allocated to it. It is not simply a ‘click of a button’. Nor can the function be undone, other than by restoring a backup, which means that you will lose any data entered since the backup was taken.
Similarly to other accounting software, the financial year rollover function results in the Profit (Loss) earned for the current financial year being moved to the allocated Retained Profit account. Additionally, accounting entries dated in that financial year cannot be deleted or modified in any way. Unlike some other software packages however, transactions remain visible and can be viewed for enquiry purposes. The running of the rollover function results in the Profit & Loss and Balance Sheet reports showing the correct profit results for the previous and current financial years. |
Additional complexity results from the integration of stock into accounting. You will have stock that fall into at least one of 4 categories with the following consequences: 1.Historical Stock Historical Stock refers to stock items that were sold prior to your conversion to Dealerlogic Accounting. They have no Accounting Purchase, Sale, Deposit, Reconditioning or Floor Plan transactions attached to them at all. These stock cards will effectively be completely locked from further changes, other than say adding Notes. Even though they carry no Accounting entries, financial data should form part of your Opening Balances and that’s what your Historical Stock is. 2. Opening Stock These stock items were in stock at the time of your conversion to Dealerlogic Accounting. They have no Accounting Purchase entries, but they may have Accounting Sale and Receipt entries, as well as Reconditioning & Floor Plan. The Purchase details as well as any reconditioning, floor plan bailment or curtailment entries made prior to conversion will not be able to be edited after the year end roll, as they formed part of your Opening Balances, and continuing to make any alterations would affect the balancing of your Opening Stock to your Opening Balances. If an Opening Stock entry remained unsold at the end of the last financial year then changes will only be prevented to the Opening Entry areas and any reconditioning and floor entries recorded prior to the end of the financial year. Naturally you will continue to be able to modify other non-financial stock details, add reconditioning & record sale details. An Opening Stock entry may have been sold prior to the end of the financial year in which case it will have Accounting Sale & Receipt entries during that financial year. This stock card is effectively closed from further editing. It cannot be Non-Delivered or Returned to Vendor. 3. Stock Purchased in last financial year but not sold in that financial year Only the purchase and any reconditioning or floor plan entries in last financial year are locked from further editing. It cannot be returned to vendor. 4. Stock Purchased and sold in last financial year This type of stock card is effectively locked from further editing. It cannot be returned to vendor or non-delivered 5. Reconditioning entries are also affected Reconditioning entries that are either marked opening or historical, or that are dated in the last financial year cannot be altered or deleted. |
There are a number of areas you need to look at. The Dealerlogic ‘End of Financial Year Rollover’ incorporates all the things you need to do and will prompt you of other areas you should check and confirm. 1. Conversion Date The date of your conversion to Dealerlogic Accounting must be entered. Without this date the software cannot accurately produce financial reports. Add this via the Accounting, Setup, Preferences screen and select the Opening Account Balance tab. Enter the date used for your conversion. (This may not be the date the conversion was actually done, but the ‘as at date’ used.) 2. Trial Balance This must balance before rollover. It normally will balance, but occasionally complex transactions may require re-Processing to fully record. To run a Trial Balance, open the Accounting Menu and select General Ledger, then choose Trial Balance. To locate any unbalanced transactions, run the Database Integrity Check from the Accounting tab of the Admin, Database Admin menu. 3. Profit Earned This Year Any amount entered into the P-40000 account via your Opening Balances must be removed (see section further on: Opening Balances – a bit more detail). 4. Account Totals Dealerlogic constantly updates the Monthly & Cumulative Account Totals whilst transactions are recorded. These must be correct prior to conversion. There is a specific area that quickly and easily checks and fixes account totals if necessary. There are other areas you can check and reconcile prior to conversion that we would strongly recommend. Individual instructions for these are attached. ·Checking your Accounts Payable & Accounts Receivable to the General Ledger as at the end of the last financial year ·Checking your Opening Stock & Reconditioning balances to the entered Opening Balances |
As you will be unable to modify any stock records that relate to the previous financial year, you must ensure all stock is correct and up to date. Make sure all Floor Plan records are correct, and stock items sold within that financial year have had payouts recorded. Additionally now is a good time to check the Vehicle Sales Clearing Accounts. Entries are created here from Vehicle Sale Journals and it is too late to discover an entry is incorrect after the FY has been rolled. All accounts in this group are intended to clear back to a zero balance, and a debit or credit retained balance at the end of the financial year should be investigated. Some common issues are these: 1. Deposits Taken This account is credited when a deposit is recorded on a stock card. When the sale is complete the sales journal makes the corresponding debit. That means that in the hypothetical circumstance of no ‘In Stock’ cards having deposits recorded this account should be at zero. The amount in this account should represent the total of deposits currently held pending delivery. 2. Registration Clearing The Registration Clearing account particularly should be checked. By default Dealerlogic makes entries here for the costs associated with, and the amount reimbursed by the customer for, Transfer of Registration & Stamp Duty transactions. Where you pass on the exact cost of these transactions to your customer on the Sales Contract this account would normally come back to zero after all sold vehicles containing these transactions were fully processed. If you sometimes ‘round’ the statutory charges up you will find the Registration Clearing account retains a Credit balance, and if there are more circumstances where you absorb these costs into the deal this account will retain a Debit balance. Regardless of whether the account ends with a debit or credit balance, correct accounting practice would dictate the surplus in this account be picked up into a Revenue or Cost of Sales Account within the financial year to which the transactions relate. 3. Payouts & Refunds Clearing The entries made to these accounts from the Sale journal represent funds to be paid either to the financier or back to the customer. Amounts should not remain in these accounts. 4. Non-Delivery Refunds When a deposit previously taken is later deleted from the stock card, and it has been banked, Dealerlogic journals the amounts of the deposit into this account awaiting refund to the customer. If the deposit is not eventually refunded, but retained, it must be journaled into a Revenue account and don’t forget that this revenue attracts GST. |