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In the Year End Reclass Adjustment panel, you can reclassify ledger entries that have an effective date and month end date greater than the year-end date, but have an accounting date in the prior fiscal year. The system reposts that activity so that the starting balance in the new year does not start out at zero. The balance is now inclusive of that activity. This panel allows you to essentially reverse out the effects of the year-end closeout process for that specific activity.

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The following scenario describes situations when you may find it helpful to use the Year End Reclass Adjustment option. 

Earn thru rules allow you to specify how the system processes accrue income and expenses when a series of non business days fall on a month end, quarter end, semi annual, or year end date. For funds that use Process with Previous Business Day logic within the earn thru rule, the general ledger postings reflect the total income and expenses accrued for Friday, Saturday, and Sunday on the Friday’s accounting date.

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To adjust year end reclass entries:

  1. In Accounting Center, in the left navigation pane, click Transactions > Ledger > Year End Processing > Year End Reclass Adjustment.
    You see the Year End Reclass Adjustment panel.
  2. Complete the options in the Year End Reclass Adjustment panel. 
    You can repost entries for one or for all accounting bases for a specified entity. You can select only funds that process Friday forward accruals and use split earn thru rules with a monthly split option.
  3. Click Submit.  

Year End Reclass Adjustment Panel Options

The following are the options in the Year End Reclass Adjustment panel.

OptionTagDescription
Entity Information

Portfolio ID1163Specifies the unique identifier of the entity. 
Portfolio Name1164Specifies the name of the entity. 
Select Query Option2283

Indicates whether to repost year end closeout entries for one or all accounting bases for the specified entity. Options include:

  • One Entity/One Basis. Default. Reposts year end closeout entries for a single accounting basis for the entity. If you select this option, you must identify that basis in the Accounting Basis field. 
  • One Entity/All Bases. Reposts year end closeout entries for all accounting bases defined for the entity.
Portfolio Currency86

Displays the portfolio currency for the selected entity. This field appears if you set the Select Query Option to One Entity/One Basis. 

Accounting Basis21Specifies the accounting basis to process for the selected entity. This field appears if you set the Select Query Option field to One Entity/One Basis.
Regulatory Category12387

Displays the regulatory category associated with International Financial Reporting Standards (IFRS) for the selected entity/accounting basis grouping.

NOTE: The system cannot perform a year end reclass adjustment for funds set up with a regulatory category.

Account Currency86Displays the base currency for the entity/accounting basis. This field appears if you set Select Query Option to One Entity/One Basis. 
Non Bus Day Processing3907

Displays how the system processes accrued interest on bonds or other fixed income securities on non-business days for the selected entity. Options include:

  • Process with Previous Business Day. The system posts non-business day accruals to the previous business day's accounting date. For example, accrued interest for Saturday and Sunday is posted on Friday.
  • Process with Next Business Day. The system posts non-business day accruals to the next business day's accounting date. For example, accrued interest for Saturday and Sunday is posted on Monday.

NOTE: The system can process a year end reclass adjustment only for funds that process Friday forward accruals, where you see a value of P.

Earn Thru Rule Name8954Displays the earn thru rule name for the selected entity. The earn thru rule specifies how the system processes accrued interest when a series of non-business days fall on a month end, quarter end, semiannual, or year end date. For more information, see Manage Earn Thru Rules.
Earn Thru Rule ID8955Displays the instance number of the Earn thru Rule Name field value for the selected entity. 
Split Indicator8958

Displays how to split non business day processing when a series of non business days falls on a month end date, quarter end date, semi-annual date, or at the end of a year for the selected entity. Options include:

  • None. Indicates you do not want to split non-business day processing.
  • Monthly Accounting Date Only. Determines the month in which the system recognizes earnings. For example, August 31, 2013 falls on a Saturday. Normally, if non business day processing were set to process with the previous business day, then Saturday, August 31, and Sunday, September 1, would be processed with Friday, August 30. If you wanted to process September 1 activity with the rest of September's activity, you can use this field to override the value in the Non Business Day Processing field.
  • Daily Accounting Date Only. Determines the day on which the system recognizes earnings. For example, January 1 is a holiday in the U.S. Earnings are not recognized on January 1 because it is a non-business day. The earnings will be recognized on the next business day or previous business day, as specified in the Non Business Day Processing field.
  • Both. Splits your earn thru rule, recognizing earnings on both the monthly accounting date and daily accounting date. Typically, the monthly accounting date is the same as the daily accounting date. The only time it is different is when a month-end date falls on a weekend or when you are booking a transaction. For example, you may want to close your daily accounting periods and leave your month-end accounting period open for mutual funds. For audit purposes, you have to strike a NAV on Friday. Suppose you get an as of trade on Saturday, and Saturday is a month-end date. This option ensures the as of trade is also recognized on your month-end set of books.

NOTE: The system can process a year end reclass adjustment only for funds that use the Split Indicator for monthly accounting dates, where you see a value of M or B.

Date Information

Ledger Period Year End Date

921

Displays the year end date for which you most recently posted closeout entries for the entity. You can perform a year end reclass adjustment only after you posted year end closeout entries for an entity. 

Trade Date35Displays the effective date of ledger entries to use for the reclass.
Accounting Date36Displays the accounting date of ledger entries for the entity to use for the reclass.
Mnthly Acct Per Date4733Displays the month end accounting date for the entity. For example, this date occurs in January.
Ye Reclass Flag18054

Indicates whether the system ran a year end reclass adjustment for the corresponding accounting period for the entity as follows:

  • A null value indicates that you did not run the Year End Reclass Adjustment process. 
  • A value of Y indicates you ran the Year End Reclass Adjustment process.
  • A value of N indicates you ran the Cancel Year End Reclass Adjustment process. 
YE Reclass Ledger Range Info

From Ledger Acct10931Displays the beginning ledger account number for the ledger entries that the system adjusts in the new year to restate balances as part of the reclass. The default value is 4001000100.
To Ledger Acct10932Displays the ending ledger account number for the ledger entries that the system adjusts in the new year to restate balances as part of the reclass. The default value is 5999999999.