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Overview
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.
Warning
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The Standard Financial Reports in the
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system rely on maintenance of the financial year in the following way
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 period
- Roll the period totals
- Roll all period totals for closed periods after this period
- Roll the financial year for any closed year
- Continue through any other closed years after this year with the same process. If you do not do this 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.
Financial Year Tab
Each financial year once defined and used cannot be deleted without first removing all transactions that refer to that year.
- Financial Year List
- To create a new financial year, clear the form, in '''Year''' then fill in the details of the name, end date and number of periods. The year will be created for you.
- Year Name
- End Date
- Number of Periods
- Roll Account Totals rolls the account totals for each closed period until the last consecutive closed period has been reached
- 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.
Opening Balances
Once a period has been selected in the Financial year tab the values for each account of the opening balances for the selected period. '''Create Zero or Empty Opening Balances Button''' is a use once capability used when first implementing the system.
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Cross Period Explorer Tab
This is an audit function to enable searching for Stock Sales Orders that have Revenue journals but not COGS journals in the same or earlier financial period as the revenue. Typically these transactions may have journals entered into the system for accounting purposes on period ends that enable the reporting of the COGS amount for the period and reversing it again at the beginning of the next period. '''Create Journal for''' Button is used to create a single journal for the entire amount of COGS in the period.
How to use the Cross Period Explorer
- Select Period of interest in '''Financial Year Tab'''
- Use '''Refresh''' button to search for all Sales Orders with Revenue in the Period that do not have corresponding COGS journals
- Use '''Create Journal for''' Button to create a journal not workingjournal