Ideas for the Mambu Banking Engine

EoY Accounting Process

What: Add a year-end accounting closure process to support organizations that use Mambu accounting in their end of year closing.

Why: At end of year every business must clear their accounts to close the year's accounting period, and this usually involves transferring their income GL accounts balances to an Equity GL account, if there are many Income accounts this process can be cumbersome and take a long time.

  • Rodrigo Ocampo Uribe
  • Oct 30 2015
  • Attach files
  • Ikenna Ajator commented
    July 15, 2016 12:57

    This is an important feature that should be implemented but we must put a number of things into consideration:

    1. It is not advisable to transfer the P&l records in such a manner that prior years details are lost. You may achieve this by using adjustments to transfer the final balances into the retained earnings account.  

    2. Some systems have a post YE menu. This menu allows you to post audit adjustments but can be used to achieve even much more. It can also be used to address item 1 and in that case, the adjustment to transfer the P&l items to retained earnings take place in the post year end menu. For a country like Nigeria where the regulatory requirement for reporting loans to the regulator and some other items are based on a local GAAP while the audited FS are based on IFRS, we can also use this post YE menu to address all the IFRS issues. Take for instance, if you book the IFRS loan adjustment in previous year, you will need to reverse that adjustment at the beginning of the year and that will distort the current year numbers. To avoid such issues, a business may decide to pass the IFRS adjustment on the face of the financial statements but this is also not good because you will be required to maintain another separate schedule for this. Except you have a system that enables multi GAAP reporting and this functionality is not on Mambu.

     

     

  • Gilberto Vittini commented
    August 01, 2019 16:10

    Seria conveniente realizar ese procedimiento