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Yardi End of Year Procedures

Closing the Fiscal Year

The Close Year function closes the fiscal year. Close Year zeroes all your Income

and Expense account totals, and allows the new fiscal years' cumulative annual

process to begin.

Printing 1099.s or Recording 1099.s on Magnetic Media (diskettes)

The 1099 function prepares your Vendor, Owner, and Tenant Interest 1099.s.

The 1099.s are based on cash books for transactions entered in the calendar year.

If you report over 250 1099.s, then the program can record them on magnetic

media, a requirement of the IRS.

Posting Account Balance Transfers

The Post Transfer function makes end-of-the-year accounting adjustments. This

function transfers the balance of one account to another for selected or all prop-

erties. Typically, you would use Post Transfer to transfer current annual retained

earnings to a cumulative retained earnings account.

Closing the Fiscal Year

Use Close Fiscal Year to zero Income and Expense account totals, and allow the

new cumulative annual process to begin.

To ensure the accuracy of the year-to-date totals in your current year reports, it

is important to close the prior year during the first month of the new fiscal year.

You may set an option called Automatic Close Year. This function automatically

closes the year for properties having a fiscal/calendar year coinciding with the

current month.

To set the Automatic Close Year option

1. From the Setup menu, choose Format, then Accounts & Options. The Ac-

counts & Options form displays.

2. Click the box labeled Automatic close year. A checkmark displays in the box.

We illustrate the Accounts & Options form below, with the Automatic Close

Year box checked.  

End of Year Procedures

3. Click Save.

To close the fiscal year

1. Back up your data. This important step should not be skipped.

2. Print any year-end reports that you may need.

Typically, these reports include Income Statement, Balance Sheet, General Ledger,

etc. You can still print these reports after closing the year.

3. Close the last month of the concluding year.

The next two steps are not necessary if you have Automatic Close Year enabled.

4. From the G/L menu, choose End Period, then Close Year. The Close Year

form displays.

The following illustration shows the menu path to the left, and the Close

Year selection form to the right.

End of Year Procedures

5. Complete the following two fields on the Close Year form:

Property Choice one or more properties, or leave this field blank to close all

eligible properties.

FY Ending Enter the last fiscal month and year for the fiscal year you are

closing. The program checks the Year-end field on each property form, and

closes the year for the appropriate properties.

If you attempt to close the year in the wrong month, you will get a message stating:

EOY complete for FY ending November. NO Properties closed..

6. Click OK.

The Program closes the fiscal year for your selected properties that have year

ends in your selected month. A Close Year message box displays showing

the number of properties the program has closed. We illustrate the Close

Year message box below:

Printing 1099.s

For accurate 1099.s, you must have a complete transaction history and you must

not have deleted any relevant records. For the G/L accounts that you want 1099

exempt, you should have checked the 1099 Exempt box in the G/L Account

setup form Options section.

If you need to report any 1099.s on magnetic media, then follow the steps below.

Otherwise, skip to the Vendor 1099.s section.

1099 Reporting on Magnetic Media

If you are filing more than 250 1099.s, the IRS requires that you file them elec-

tronically (see IRS Revenue Procedure 92-46).

You must set up a Vendor specifically to represent the Transmitting entity. Be-

cause certain fields on the Vendor form are used in special ways, even if the

Transmitting entity is your property management company, you need to set up

an additional Vendor form to be the Transmitting entity.

To create a new vendor as the transmitting entity

1. From the Payable menu, choose Vendor.

2. Click New. A new Vendor form displays.

3 Complete the fields on the Vendor form, paying special attention to the fol-

lowing fields:

I.D. Enter the federal ID (this is the tax identification number.SSN or EIN)

of the transmitter company

Gets1099 Leave this box UNCHECKED.

Name This field must be blank, unless this is a Replacement magnetic media

filing, in which case, enter the alphanumeric character, which appears im-

mediately following the TCC number on the Magnetic Media Tracing Slip

(Form 9267) returned by the IRS when they requested a replacement.

Check Memo Enter the TCC (Transmitter Control Code) in the Check

Memo field of the transmitter vendor.

Name, Address Enter the company name in the Name field. If the company

name requires two lines, use the first line of Address for the continuation. If

the name is complete in the Name area, use the first line of Address for the

street address and leave the second Address line blank (i.e. only enter a two-

line address if the first line is a continuation of the company name). The

name and address you enter here identifies the place where the IRS should

send correspondence about your magnetic media return. Enter the city/state

and zip as usual.

Contact Enter the person's name who the IRS should contact about the re-

turn.

Phone Number Enter the phone number where the Contact can be reached.

4 Click Save.

i The 1099 reporting assumes that no amounts have been withheld for tax.

Renaming and Saving Magnetic Media Files

IMPORTANT: Before you send the files to the IRS, you must rename the files.

The program initially names the files: irstax.001, irstax.002, and irstax.003. Each

file is a complete file according to IRS specifications. (Each file begins with a T

record, ends with an F record).

When you send the files to the IRS, each must be re-named irstax. For example,

you would re-name the irstax.001 file to irstax.

Be sure you have only one file on each disk you send. Contact the IRS for the spe-

cial rules for files that are too large for a single diskette. For example, you would

rename irstax.001 to irstax and put it on one disk, and rename irstax002 to irstax

and put it on a different disk, etc.

Printing Vendor 1099.s

All vendors, who have been paid more than $600.00 in the past year need a 1099.

The program looks at the date the check was written (not the Invoice date or the

Post Month date) to calculate who is eligible for a 1099.

i To have a complete transaction history for all vendors, do not delete vendors or

properties until after 1099.s are completed.

Before printing Vendor 1099.s, make sure you have completed the following

fields on the Vendor form:

I. D. Social Security Number or Taxpayer Identification number

Name Full name attached to the above number

Gets 1099 Make sure this box has been checked

Checking the Vendor Detail Report

To check for accuracy, run the Vendor Detail report, and look at the .Gets

1099. column.

We illustrate a partial view of the Vendor Detail report below, showing the "Gets

1099" column marked Y for "Yes".

To run the Vendor Detail report

1 From the Report menu, choose Vendor, then Detail. The Vendor Detail se-

lection form displays.

2 Complete the fields as appropriate.

3 Click OK.

4 Check the report for accuracy.

Deciding the Vendor 1099 Payer

Decide whether the Payer for the 1099.s is the Management Company or the

owner(s).

If the Payer is the owner(s) perform the following steps:

1 From the Setup menu, choose Property.

2 In the Vendor 1099 Payer field, choose one of the following from the drop

down list:

>All Owners

>A specific owner code

Below we illustrate the Property form Vendor 1099 Payer field, showing All

Owners selected.

t If you have multiple owners for a property, but want the 1099 Payer to be a com-

pany/partnership rather than the individual owners, then create a new owner in the

name of the company/partnership, add it to the Property form, and give that Owner

0% ownership. Then select it as the Vendor 1099 Payer on the Property form.

To print Vendor 1099.s

After you have completed your Vendor 1099 setup, you are ready to print Ven-

dor 1099.s.

1. Fill your printer with the appropriate blank IRS 1099 stock.

2. From the Report menu, choose Vendor, then 1099. The Vendor 1099 form

displays.

The following illustration shows the menu path to the left, and the Vendor

1099 selection form to the right.

3. Complete fields as appropriate:

Property Choose one or more properties, or leave blank to choose all properties.

Vendor Choose a single 1099 recipient vendor, or leave blank to choose all vendors.

Min Amount The default is $600. You may change this amount if needed.

MagMedia If you are recording 1099.s on magnetic media, choose Original,

Test or Replacement. Otherwise, choose None.

i If you are using MagMedia, be sure you have entered the TCC code in the Check

Memo field on the Vendor form before continuing. We illustrate a partial view of

the Vendor form, showing an example TTC number entered in the Memo field:

Transmitter Complete this field only if you are creating magnetic media

files. Choose the vendor you created as the transmitting entity.

Payer The default for the Payer field will be your property management

company. To print 1099.s separately by owner, choose Owner. The program

will print one 1099 per owner for each vendor when Owner is selected in the

Payer field and the Owner field is left blank. Each owner.s 1099 shows a pro-

rated amount.

Owner If you choose one owner, then the forms will print as 100% to the se-

lected owner.

Mode Choose one of the following:

>1099.s and Report This option prints the 1099.s and a report for your

records.

>Report Only This option prints a report for review.

>Align Printer This option prints one test sample 1099.

i If you choose 1099.s and Report or Align Printer, the output automatically goes to

the default printer in your Microsoft Windows setup, even if you choose Screen.

Left Margin This field sets the left margin and horizontal placement. The

horizontal placement is measured in Twips with the default set to 720.

To move information to the left, decrease the Left Margin number.

To move info to the right, increase the Left Margin number.

Top Margin-This field sets the top margin and vertical placement. This is

also measured in Twips and is set to 240 or 1 line of 12-point text.

To move printing down 1 line, increase Top Margin number 240.

To move printing up 1 line, decrease Top Margin number by 240.

1099 Year Enter the calendar year in which you are reporting the payments.

4. Click OK.

Special Case: When printing 1099.s for Vendors by Owner, click Setup on the fil-

ter screen, enter the number of copies and check collate copies. Answer no to the

copies question and no to the report question. Print the reports separately. After-

wards, reset for 1 copy. You can also run the 1099 function multiple times if you

don't wish to pre-collate.

To print multiple copies of 1099.s, answer Yes to the "Do you want to print another

copy?" question, as many times as you need copies. If necessary, you can load dif-

ferent paper stock each time. To fit all the information on the pre-printed 1099

forms, set the printer for 10 characters per inch, and 6 lines per inch.

Printing Owner 1099's

When calculating Owner 1099s, Yardi Property Management calculates the

amount to be reported in the "1. Rent" field on the 1099 form, based on transac-

tions dated in the calendar year for all income-type accounts that have a normal

credit balance.

Before printing Owner1099's, check that you have properly set up for successful

1099 printing.

Checking the Owner Detail Report

To check for accuracy, run the Owner Detail report, and look at the .Gets 1099.

column.

Below we illustrate a partial view of the Owner Detail report, showing the "Gets

1099" column marked Y for "Yes".

To print owner 1099.s

1. Fill your printer with the appropriate blank IRS 1099 stock.

2. From the Report menu, choose Owner, then Owner 1099. The Owner 1099

form displays.

The following illustration shows the menu path to the left, and the Owner

1099 selection form to the right.

3 Complete the fields as appropriate:

Property Choose one or more properties, or leave blank to choose all properties.

Owner Choose one recipient owner, or leave blank to choose all owners.

Min Amount Enter the minimum amount according to IRS regulations for

Owner income.

MagMedia If you are creating a 1099 in a computer file, choose Original,

Test, or Replacement. Otherwise, choose None.

i If you are using MagMedia, be sure you have entered the TCC code in the Check

Memo field on the Vendor form before continuing. We illustrate a partial view of

the Vendor form, showing an example TTC number entered in the Memo field:

Transmitter Complete this field only if you are creating magnetic media

files. Choose the vendor you created as the transmitting entity.

Mode Choose one of the following:

>1099.s and Report This option prints the 1099.s and a report for your

records.

> Report Only This option prints a report for your review.

> Align Printer This option prints one test sample 1099.

i If you choose 1099.s and Report or Align Printer, the output automatically goes to

the default printer in your Microsoft Windows setup, even if you choose Screen.

Left Margin This field sets the left margin and horizontal placement. The

horizontal placement is measured in Twips with the default set to 720.

To move information to the left, decrease the Left Margin number.

To move info to the right, increase the Left Margin number.

Top Margin-This field sets the top margin and vertical placement. This is

also measured in Twips and is set to 240 or 1 line of 12-point text.

To move printing down 1 line, increase Top Margin number 240.

To move printing up 1 line, decrease Top Margin number by 240.

1099 Year Enter the calendar year in which you are reporting the payments.

Include Deposit? Choose one of the following:

>No Each 1099 will include the owner.s gross income from all the prop-

erties you manage, except income involving tenant deposit accounts.

>Yes Each 1099 will include all gross income plus the owner.s share of

any tenant accounts.

4. Click OK.

i Special Case: When printing 1099.s for Vendors by Owner, click Setup on the fil-

ter screen, enter the number of copies and check collate copies. Answer no to the

copies question and no to the report question. Print the reports separately. After-

wards, reset for 1 copy. You can also run the 1099 function multiple times if you

don.t wish to pre-collate.

t To print multiple copies of 1099.s, answer Yes to the "Do you want to print another

copy?" question as many times as you need copies. If necessary, you can load dif-

ferent paper stock each time. To fit all the information on the pre-printed 1099

forms, set the printer for 10 characters per inch, and 6 lines per inch.

Tenant Interest 1099.s

Before printing your Tenant Interest 1099.s, please review the following:

All tenants who have been paid more than $10 in interest on their security de-

posits need a 1099-int.

i You must have completed the Fed I.D. field (in Enterprise, on the Tenant Other Info

tab; in Advantage and Professional, on the Tenant 2nd page). You must also have en-

tered the Tenant Interest G/L account in the Deposit Interest field of Accounts & Op-

tions. The Deposit Interest field is located on the Receivable Accounts tab.

By default, the program prints one 1099-INT per tenant with your property

management company as the Payer.

Z To print one 1099-INT per owner for each tenant, choose Owner in the

Payer field.

Z Each owner.s Tenant 1099-int shows partial figures based on Percent

Owned from the Property form.

i To calculate the amount of interest paid to a tenant, the program examines the

payables linked to a tenant, reads from the check-write date to calculate who is eli-

gible for a 1099, and sums the amounts posted to the deposit interest G/L account.

For accurate 1099.s, you must have a complete transaction history and you must

not have deleted any relevant records. For the G/L accounts that you want 1099

exempt, you should have checked the 1099 Exempt box in the G/L Account

setup form Options section.

To print Tenant Interest 1099.s

1 Fill you printer with the appropriate blank IRS 1099 stock.

2 From the Report menu, choose Tenant, then 1099-Int. The 1099 INT form

displays.

The following illustration shows the menu path to the left, and the Tenant

1099 INT selection form to the right.

3 Complete the following fields:

Property Choose one or more properties, or leave blank to choose all prop-

erties.

Tenant Choose your tenant, or leave blank to choose all tenants.

Min Amount Enter the minimum tenant interest that must be reported.

MagMedia If you are creating a 1099 for magnetic media, choose Original,

Test, or Replacement. Otherwise, choose None.

i If you are using MagMedia, be sure you have entered the TCC code in the Check

Memo field on the Vendor form before continuing. We illustrate a partial view of

the Vendor form, showing an example TTC number entered in the Memo field:

Transmitter Complete this field only if you are creating magnetic media

files. Choose the vendor you created as the transmitting entity.

Payer Choose whether you want the Company Vendor or a property owner

to appear as the Payer on your 1099.s.

YARDI SYSTEMS, INC TECHNICAL NOTE 13

End of Year Procedures

Owner To print 1099.s from one owner, choose the owner from the Owners

list.

Mode Choose one of the following:

> 1099.s and Report This option prints the 1099.s and a report for your

records.

>Report Only This option prints a report for your review.

> Align Printer This option prints one test sample 1099.

i If you choose 1099.s and Report or Align Printer, the output automatically goes to

the default printer in your Microsoft Windows setup, even if you choose Screen.

Left Margin This field sets the left margin and horizontal placement. The

horizontal placement is measured in Twips with the default set to 720.

To move information to the left, decrease the Left Margin number.

To move info to the right, increase the Left Margin number.

Top Margin This field sets the top margin and vertical placement. This is

also measured in Twips and is set to 240 or 1 line of 12-point text.

To move printing down 1 line, increase Top Margin number 240.

To move printing up 1 line, decrease Top Margin number by 240.

1099 Year Enter the calendar year in which you are reporting the payments.

4. Click OK.

Post Transfer

After you have closed the year, there may be certain account balances that you

want to move to different accounts. The most common example would be the

Retained Earnings account. If you want the balance of this account to accurately

reflect activity for the new fiscal year, the balance for this account must be

moved to an account such as Prior Year Retained Earnings, so it begins the year

with a zero balance. You can use the Post Transfer function to transfer these ac-

count balances.

To post your account balance transfer

1 From the G/L menu, choose Post Transfer. The Post Transfer form displays.

The following illustration shows the menu path to the left, and a completed

Post Transfer selection form example to the right.

2 Complete the following fields on the Post Transfer form:

Property Choose one or more properties, or leave this field blank if this transfer

applies to all properties.

From Account Select the account form which you are transferring the funds.

Percent This field is required. Enter the percentage you want to transfer, either as a

whole number or a decimal fraction. For the example shown above, we enter 100.

Type Choose either % of Month-to-Date or % of Year-To-Date.

Base Month Enter the as of month. The program determines the transfer

amount using either the Month-to-Date or Year-to-Date balance as of the

month you specify.

i For our example above, the Base Month would be the last month of the fiscal year.

To Account Choose the G/L account into which you are transferring the balance.

JE Date This field is required. Enter the date you are posting the transaction.

JE Post Month Enter the month the journal entries will affect the account balances.

Usually this would be the same as the Base Month, but it could be different.

JE Notes The program will copy the notes you enter in this field to the Notes

field of the resulting transactions.

3 Click OK.

The program creates one transaction for each non-zero balance. When finished, the

Post Transfer box displays, showing you how many journal entries were created.

 

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Last modified: 03/26/08