Year-end changed within conversion period

Sage desktop requires a year-end process to be completed. This process posts a journal to “clear down” the P&L accounts and enter the balance to retained earnings.

Online systems do not normally have a corresponding year-end journal and, instead, calculate the balances “on-the-fly” for reports based on the year-end date set and the report dates selected.

When we convert from Sage we do not convert the year-end journals. The reason for this is that the P&L accounts would incorrectly reflect nil balances

Any change to the year-end within the conversion period will cause balances to be incorrect because of the year-end journal positing.

Further complications also arise from “late” entries in Sage posted back into periods where the year-end has already been run.