Prior year adjustments occur when you record an entry to an income statement account with an accounting date in your prior fiscal year.

Note: When this happens, your Current Ledger and Year-to-Date Ledger reports may be out of balance until you close the prior year adjustments to retained earnings or reverse.

1. Before closing the fiscal year, be sure you have a current backup of the Master.GLM and the History.GLT or the full data folder. See How to Back up Company data with System Administrator including SQL Replicator
2. Have all operators exit Sage 300 Construction and Real Estate.
3. From Tasks, select Close Fiscal Year. Click Yes.
4. If you use prefixes, select the correct prefix. Click OK.
   • Note: The period end and fiscal year dates displayed are for reference. If you aren’t in the last period of your fiscal year or if you need to close prior year adjustments, then the Close Fiscal Year task only closes prior year adjustments. This doesn’t close your current fiscal year.
5. You should receive a message stating there are prior year adjustments and prior year adjustments will be closed. Click OK.
6. Note the amount in the Close Fiscal Year - Earnings Distribution window. This is the net amount of prior year adjustments posted to income statement accounts. Click Cancel if you don’t want to close prior year adjustments to retained earnings.
7. Click Accept, then Start. Direct the journal to a file or printer.

Note: Sage MyAssistant can automatically notify you when Prior Year Adjustments are available to close. Contact our CRE Sales Team at 1-800-858-7095 or email at [email protected] for more information.