[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

Yearend Transactions

Does LSMB handle Yearend transactions the same way that SL did a few years ago?

There is even less in the LSMB manual about yearends (year-end) than there is in the SL manual from a few years ago, although they include slightly different information.

I have googled up multiple posts to SL and LSMB lists asking for advice and howtos on Yearend processing, and the various aspects thereof, but for the most part those messages have gone unanswered.

I found a message from Dieter as follows:

" A yearend may be run at any time, it does not affect any transactions nor does it remove transactions. A special GL Journal entry is generated offsetting income and expense accounts to zero. The difference is posted to a retained earnings account of your choice. You will also have to edit this GL Journal entry to record dividends, tax payments and adjust retained earnings accordingly."

The LSMB 1.2 manual says:

"Equity drawing/dividend accounts are also moved, but the investment accounts are not."
Further down the page it says:
"It does not move the drawing account, and this must be done manually, nor does it automate the process of making adjustments."

Is this talking about two separate types of drawing account?
(I'm using the US Service COA here--what does it consider the "drawing account" and "drawing accounts" in these two statements to be?)

My question is: what else do I have to do, other than running the yearend?

The case is a service company, which does cash based accounting.

When Dieter says to edit it to record dividends, I assume he's talking about disbursements to owners from some drawing account as discussed above? If so, that is n/a this year, although I'd still like to know how it is intended to be done.

He also says to edit it to record tax payments. I am less clear on what is intended with this step. First, is he talking about tax payments made in the year being ended? Which were presumably made via a GL entry/transfer? Some jurisdictions handle this by quarterly estimated deposits; others handle taxes with annual payments, etc..

Second, sales taxes are directly collected and paid, so where do they fall in this? I have always considered them to be 0-sum income/expense transactions, with rare exceptions.

Given that I want to use cash basis for these, do I understand correctly (again from the SL manual not the LSMB one), that I need to post full payment/receipt to any open transactions, and post new versions of those with the outstanding amounts, awaiting payment/receipt in the new year?
That is PITA-central, and error-prone.