How do I Close the Year in the General Ledger

Year End processing is performed only when Period 12 is shown as the current period in Orion.  Be sure you want to close the year (Period 12) before starting the process as it is irreversible within the Orion program.  We recommend checking with your IT department to make sure you have a good back-up of your data before beginning the process.

Closing the final period of the fiscal year is somewhat more complicated for the system, although not necessarily for the operator. If End of Period processing is initiated while the current period is 12, the system automatically runs a Year End Processing instead of the normal Month End Closing.

Using information from the System File and specified accounts in your Chart of Accounts, the program zeroes out all revenue and expense accounts and updates the Retained Earnings account with the offsetting entry.  The Account Type field determines how the transaction is created by Orion. 

To close your fiscal year in the General Ledger, click the ACTION Button and choose the End of Period option.  Once the End of Period program is displayed, click the CLOSE PERIOD: 12 Button.  

CHECK THE INFORMATION ON THIS SCREEN VERY CAREFULLY.  IF ANY INFORMATION NEEDS TO BE CHANGED, CANCEL THE CLOSING PROCESS AND GO INTO TOOLS, SYSTEM SETTINGS AND MAKE THE APPROPRIATE CHANGES. 

Accounts to be Closed

The first section displays the range of accounts to be closed as defined in the System File.  This range should begin with your first income account and end with your last expense account.  If it is not correct or you are not sure about the range, immediately cancel the closing process and go into TOOLS, System Settings and make the appropriate changes.

NOTE: This range should not include the account number used as the Close to Account (Retained Earnings). 

Total Debits, Credits and Amount to be Closed into Retained Earnings

Orion will also let you know the total debit and credit amounts found in the “accounts to be closed” and the amount that will update the Retained Earnings account.  The amount hitting Retained Earnings should equal the net profit/loss of the year you are closing.  If the numbers displayed are not correct, close the program and double check your range of accounts to be closed.  

Close to Account

The Close to Account is your Retained Earnings Account.  This is the account Orion will hit with the balancing entry to the debits and credits created on the income and expense accounts.  The number shown here should equal your YTD Net Income (Loss).  You should make sure the “Close To” account is correct.  If the account number displayed is not correct or the amount closed into the Close To Account is not correct, immediately cancel the closing process and go into TOOLS, System Settings and make the appropriate changes.

NOTE: This account number should not fall within the range specified as the Accounts to Be Closed range. 

Once all information has been verified, click the CLOSE Button.  Orion will begin the closing procedure.  Once the closing process has completed (takes very little time), print a Trial Balance for Period 1 of the new year.  Please check this report carefully.  Your total debits should equal your total credits and all income and expense accounts should have a balance of zero.  Should there be anything wrong with the Trial Balance, please discontinue any work in the General Ledger and call Orion Law Management Support Personnel immediately.

NOTE: IF YOU RECEIVE ANY ERROR MESSAGES ONCE THE CLOSING PROCESS HAS STARTED, DO NOT ATTEMPT TO RE-START THE CLOSING PROCESS BUT GIVE ORION SUPPORT PERSONNEL A CALL!!!