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Management of the accounting of financial years is important for reporting and control purposes.
Transactions can only be entered into financial periods if they are open and totals are only rolled when periods are closed.
To populate the information about a financial year select it from the year drop down list.
To create a new Financial year
- clear the form
- Enter a name (eg FY12-13)
- Enter the end date (eg 30 june 2013)
- Enter the number of financial periods (eg 12)
- Save
Each financial year once defined and used cannot be deleted without first removing all transactions that refer to that year.
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Opening / Closing Periods
When a period is closed the totals for the period are re-calculated.
The Standard Financial Reports Module in the system
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use the Retained Earnings Figure
Reports look back to the last closed financial period and use the totals from the closed period results and then calculate forward. This requires a discipline when re-opening periods to make adjustments. If you re-open a period you MUST
- Close the periodRoll the period totals
- Roll all period totals for closed periods after this periodRoll the financial year for any closed year
- Continue through any other closed years after this year with the same process.
If you do not
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Roll the financial year your balance sheet may not balance due to the Retained Earnings figure for each year not being correctly calculated.
Note you can re-open periods and close them again later - anytime (if you have authority). Normally this would be done to do adjustments to journals. If you re-open a period and close it again you MUST "Roll Account Totals" to update the values for that month and subsequent months and for retained earnings
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Financial Year Tab
Each financial year once defined and used cannot be deleted without first removing all transactions that refer to that year.
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- Retained Earnings is only calculated after all periods have been closed and the "Calc Current Year Earnings" button is used.
- note: If any periods are opened and changed this must be calculated again for the balance sheet and trial balance to be accurate
- Current Years Earnings is updated when the button is pressed and is not updated automatically when changes are made
Periods Grid
When you have selected a period by clicking on the row an arrow will show on the LHS of the grid. Using the pulldown TopRHS of the grid enables actions available for this period.
- Open Periods
- Close will close and calculate period totals
- Open
- Reopen to enable changes or additional transactions to be entered against this period
- Redo Period Totals is to be used where you have opened a previously closed period and added transactions to the period
Period Summary Tab
Once a period has been selected in the Financial year tab the grid shows all accounts for the period with their Debits and Credits total listed and their Currency.
In the bottom of the grid is the total Debits and credits across all accounts.
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Once a period has been selected in the Financial year tab the values for each account of the opening balances for the selected period.
Note - '''Create Zero or Empty Opening Balances Button''' is a use once capability used when first implementing the system.
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