Prior to closing any financial year in Jim2, an adjusting end of year journal (which will be provided by the company's accountant) needs to be entered into Jim2 and dated 30 June XXXX (reflecting the year that is being closed). This will ensure that Jim2 provides accurate Profit & Loss and Balance Sheet reports for the closed year.
There are a few general ledger accounts in Jim2 that should not be used in general journals. Please make the accountant aware of these control accounts. Journals to these accounts will affect the integrity of the database, as they are controlled via other transactions.
These control accounts include:
1-XXXX Unbanked Funds: the balance in this account should always match the value in Accounts > Bank Deposits.
1-XXXX SOH accounts: the balances are generated by purchase orders when stock is purchased, and reduced when stock is sold. If these accounts are journalled to, the general ledger value will be out of balance with the stock sub-ledger value.
1-XXXX Expenses on Purchases: this is a temporary account controlled by Jim2.
1-XXXX Temp Stock on Hand – purchase orders on Received: this is a temporary account and should always match the Temp Creditors account.
1-XXXX Trade Debtors: if this is journalled to, the general ledger will be out of balance with the debtors sub-ledger.
2-XXXX Trade Creditors: if this is journalled to, the general ledger will be out of balance with the creditors sub-ledger.
2-XXXX Temp Creditors – purchase orders on Received: this is a temporary account and should always match the Temp Stock on Hand account.
3-XXXX Current Year Earnings: this is a Jim2 calculated balance and equals the result of the Profit & Loss. This will move to the Retained Earning accounts upon rolling the financial year. Whilst you can journal to the Retained Earnings account, it is advisable not to do so.
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Note: You cannot post to this account as it is a calculated balance showing the result of the P&L. |
3-XXXX Retained Earnings: when closing off a financial year in Jim2, the balance in the Current Year Earnings account for the year being closed rolls into this account.
3-9999 Historical Balancing: this is a Jim2 calculated balance. The balance in this account must be zero before closing off the first financial year in Jim2. If there is a balance other than zero, it means that the general ledger account opening debit and credit balances do not balance, and they must be corrected to bring this account balance to zero.
5-XXXX COGS accounts: these figures are internally generated by selling stock. When stock is sold, the cost automatically moves from the relevant Asset SOH account to the relevant COGS account.
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Note: Tax Code X should always be used on all lines of end of financial year adjusting general journals.
We suggest using GST Type = Purchase on EOFY adjusting journals as they are typically more expense type entries. |
Adjustments may need to be discussed with the company's accountant prior to entering a general journal in Jim2.
Further information
EOFY Process for NZ Current Year