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.
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.
Opening / Closing Periods
When a period is closed the totals for the period are re-calculated.
The Standard Financial Reports Module in the system 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 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 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.
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.
Note - '''Create Zero or Empty Opening Balances Button''' is a use once capability used when first implementing the system.
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