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Year-End Close Process in Smartwebs

The Year-End Close Process involves transferring of the year end account balances of all income and Expense general ledgers (GLs) to the Retained Earnings GLs per fund set up, as specified in the Default GL Codes. These transactions will be posted using the last day date of the last month of your fiscal period, and your Net Income/(Loss) will reset to zero on the first day of the new fiscal period. 

Reports

 Before beginning the year-end close process, it is recommended to generate the following reports for review and reference: 

  • General Ledger Report (01.01.2024 - 12.31.2024) – Entire Fiscal Year
  • Income Statement Detail (01.01.2024 - 12.31.2024) – Entire Fiscal Year
  • Balance Sheet (12.31.2024) – Last day of Fiscal Year
  • Trial Balance Report (12.31.2024) – Last day of Fiscal Year

 

Default GL Codes

Each fund is required to have its own Retained Earnings set in the Default GL Codes (i.e. Operating, Reserve, Special Assessments, Working Capital). 

Navigate to Accounting > Settings > Default GL Codes to configure your GL codes. Click Edit, make the necessary changes and then click Save.

NOTE: You must have GL Accounts setup for each fund before you are able to assign them in the Default GL Code area. 

To add a GL Account, you'll first to go the Global GL Account List (Accounting > GL > Global Accounts) and click Add Global Account. 

Then, you'll need to add them to the Association's Chart of Account (Accounting > GL > Chart of Accounts) and click Add GL Account.

Period Close Process

When you are ready to close the period, you'll go to the Periods area (Accounting > GL > Periods).

  1. Confirm the current open period is correct.
  2. Click Close Period button
  3. Click Yes to confirm. 

After confirming, you'll now see a new period show along with an update to the hard and soft closed date. All income and expense GL balances have transferred to the Retained Earnings that you set up in your default GL codes.  

Prior Year Closings

Smartwebs updated the process for Year End Closing in January 2025. Any previous hard closing entries have been removed after this release. If you completed any manual journal entries to move funds, then you'll need to void, delete, or produce reversing journal entries to prevent inaccurate reporting.