This help covers closing the financial period in Netvisor. You can open the view by selecting Financial Management > Bookkeeping > Financial statements > Financial period management.
CONTENT
Closing the financial period
The financial period is closed in Financial period management. Proceed as follows:
- Open the view by selecting Financial Management > Bookkeeping > Financial statements > Financial period management.
- Check that a new financial period has been created. If there is no new financial period, create one by selecting the New financial period link.
- Make sure you close financial periods in chronological order: always close the oldest open financial period first.
- Select the Close financial period link on the row of the financial period you want to close.
When you close a financial period, the system automatically performs the following actions:
- Creates a unilateral voucher that records the calculated profit of the closing financial period to the balance sheet profit account.
- Creates a voucher on the first day of the next financial period that transfers the profit to the previous financial period profit account.
- Shows the profit for the reported period on different financial periods’ balance sheet reports on the balance sheet financial period profit account.
- Locks the financial period transactions so that no changes can be made without reopening the financial period.
The effects of locking the financial period are as follows:
- The profit of the open financial period is always calculated in the balance sheet as a calculated amount 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, invalidated, or deleted.
A new financial period can be created from the New financial period link. Create a new financial period before you close the most recent financial period.
Opening a closed financial period
Opening a closed financial period reopens the period and invalidates the unilateral voucher created when closing the financial period. Proceed as follows:
- Open the view by selecting Financial Management > Bookkeeping > Financial statements > Financial period management.
- Find the financial period to be opened.
- Make sure that the financial period’s financial statements have not been sealed and archived in the financial period archive. Opening is only possible for such periods.
- Select the Open link in the Financial period decision column on the row of the financial period.
Note the following restrictions and rights:
- Opening does not remove the vat lock.
- If the financial period is sealed, first unarchive the material from the financial period archive by selecting the Remove financial statement reports and sealing button.
- Removing the sealing and financial statement reports requires the Financial period archive right for status management of the financial statements (confirmation of the financial statements) as well as accountant rights.
Financial period statuses
A financial period can have the following statuses:
- Open: The financial period is open.
- Closed: The financial period is closed by selecting the Close financial period link.
- Sealed: The financial period is sealed when the material is archived in the financial period archive from the financial statements composition view via the Create and archive financial statement report link.
- Confirmed: The financial period is confirmed in the financial period archive.
- Audited: The financial period is marked as audited. This can only be done with auditor rights in the financial period archive once the material has first been confirmed.
Frequently asked questions
I'm trying to remove the sealing, but nothing happens?
Removing the sealing in the financial period archive requires the right for status management of the financial period archive (confirmation of the financial statements). If nothing happens when pressing the Remove financial statement reports and sealing button, check that you have the right for status management by selecting Company menu > Financial period archive rights > Right for status management of the financial statements (confirmation of the financial statements).
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, unarchive the financial statement material and recreate it. This is the only way to correct erroneous information in the financial statements.
When can a financial period be reopened?
You can reopen a financial period only if the financial statements have not been sealed and archived in the financial period archive. If the financial period is sealed, first remove the financial statement reports and sealing in the financial period archive, and then reopen the financial period in Financial period management.
Why can't I edit financial statement vouchers?
The automatic financial statement vouchers created when closing the financial period are system-generated. They cannot be edited, invalidated, or deleted. If you need changes, reopen the financial period and make the necessary bookkeeping corrections to the open financial period.
Why does the financial period profit appear on different accounts in the balance sheet for different financial periods?
When closing the financial period, the system records the calculated profit of the financial period to the balance sheet financial period profit account and transfers it at the beginning of the next financial period to the previous financial period profit account. For this reason, the profit for the reported period in different financial periods’ balance sheet reports appears on the financial period profit account, and the profits of earlier periods on the previous financial period profit account.
Keywords: Financial period, financial period management, closing the financial period, financial period statuses
Did you find it helpful? Yes No
Send feedback