This guide covers the closing of the financial year in Netvisor. You can access the management of financial years via the path Financial Management > Accounting > Financial Statements > Management of Financial Years.
CONTENT
Closing the financial year
The financial year is closed from the Management of Financial Years by clicking the Close Financial Year link. Financial years must be closed in chronological order, meaning the oldest open financial year must be closed first. When the financial year is closed, the system creates a unilateral voucher that records the calculated profit of the closing financial year to the balance sheet profit account. Simultaneously, a voucher is created by the system on the first day of the next financial year, transferring the profit to the previous financial year's profit account. This way, the profit reported in the balance sheet for different financial years appears in the balance sheet's financial year profit account. Closing the financial year locks the transactions of the financial year so that changes are not possible without opening the decision. The profit of the open financial year is always calculated in the balance sheet as calculated from the income statement accounts (from the lock date onwards). Other balance sheet items are always calculated from transactions from the beginning of history. Automatic financial statement vouchers cannot be edited, voided, or deleted.
A new financial year can be created from the New Financial Year link. To close the most recent financial year, a new financial year must be created beforehand.
Opening a closed financial year
Opening a closed financial year voids the unilateral voucher created during the closing of the financial year and opens the financial year. Opening does not remove the VAT lock. Opening can only be done for periods whose financial statements have not been sealed and archived in the financial year archive.
The financial year can be opened from the Open link in the Financial Year Decision column. If the financial year is sealed, the material must first be unarchived from the financial year archive. This is done by pressing the Remove Financial Statement Reports and Sealing button. This requires the Financial Year Archive right for status management of the financial statement (confirmation of the financial statement) and accountant rights.
Financial year statuses
Open: The financial year is open.
Closed: The status becomes closed when the Close Financial Year link is clicked.
Sealed: The status becomes sealed when the material is archived in the financial year archive from the financial statement composition view and the Archive Financial Statement Report link.
Confirmed: When the material is confirmed in the financial year archive.
Audited: Only an auditor with rights can do this. The option is found in the financial year archive once the material is first confirmed.
FAQ
I'm trying to remove the sealing, but nothing happens?
Removing the sealing in the financial year archive requires the right for status management of the financial year archive (confirmation of the financial statement). If nothing happens when pressing the "Remove Financial Statement Reports and Sealing" button, check that you have the right for status management (Company Menu > Financial Year Archive Rights > Right for Status Management of the Financial Statement (confirmation of the financial statement))
What if there is an error in the financial statement material, such as an old signature date?
If there is an error in the financial statement material, such as an old signature date, the financial statement material must be unarchived and recreated. This is the only way to correct erroneous information in the financial statement.
Keywords: Financial year, management of financial years, closing the financial year, financial year statuses
Did you find it helpful? Yes No
Send feedback