This guide explains the management of financial periods in Netvisor. The guide covers the creation, editing, closing, and opening of financial periods. You can open the view by selecting Financial management > Financial statements > Financial period management.

Note the following principles when using financial periods:

  • Keep several financial periods open at the same time if needed, so that transactions can be recorded to them manually or via system automation.
  • Create new financial periods as a user performing bookkeeping.
  • Select a default financial period or change the financial period only for the duration of the current session. At the next login or when switching company, the company’s current default financial period is restored.
  • Change the default period if necessary. Changing the default period affects all users from the next login or company switch after the change.

Note the system automation postings:

  • Let receipts created by the system automation be recorded to the correct financial period according to the date.
  • If the financial period is locked, the system records the transaction to the next open financial period and notifies about this when creating the receipt or invoice.
  • Utilize the financial period date information when calculating profit and balance sheet. This way, profit/loss handling works correctly at the turn of the financial period even if the period has not been closed, and reporting can also be done for a range between two financial periods.

Ensure rights for creating a new financial period:

  • Make sure that in the function-specific rights you have editing rights for the following:
    • basic information management
    • financial period management
    • basic functions of financial statements

First financial period

Proceed with the first financial period as follows:

  1. Note that when the service is opened, the current calendar year is formed as the first financial period by default.
  2. If necessary, edit the information of the first financial period by selecting the Edit financial periods button. You cannot edit the start date of the first financial period directly in the system.
  3. Contact Netvisor support if you need to change the start date of the first financial period.
  4. Inform support of the new date to be set for the financial period.
  5. Before the change, make sure that there are no vouchers left in the bookkeeping between the old and new dates. Check this in receipt browsing.
  6. Save any edits to financial statement reports to your own computer, because changing the financial period date restores the default reports in the financial statements view.

During system implementation, proceed as follows:

  1. Enter the opening balance sheet and profit and loss statement for the previous financial period.
  2. Close the financial period when you want the closing of the financial period and posting of the profit to the next period to happen automatically.
  3. Click the Close financial period link, after which the period is locked and the profit is posted automatically.
  4. See additional information if needed: Comparison data for the previous financial period.

Financial period management


Creating a new financial period

Proceed as follows before closing the financial period:

  1. Open a new financial period in the system before closing the previous financial period.
  2. Let the system automatically record transactions generated with the new financial period’s dates to the new financial period.

Note the system automation at the beginning of a new financial period:

  • Let the payments traffic program and other automation retrieve transactions immediately on the first day of the year.
  • Make sure that the new financial period has been created so that transactions are recorded to the new period if the financial period changes.
  • Note that if a new financial period has not been created, all receipts generated by the system may receive the receipt number “1”.
  • If necessary, correct the receipt numbering by performing receipt renumbering immediately after creating the new financial period. Additional information: Renumbering receipts.

Note receipt numbering in the new period:

  • When recording to the new period, let the system start voucher-type-specific receipt numbering from the beginning (1).
  • Change the numbering if necessary by entering the desired number for an existing receipt. The system continues numbering from this number onwards.

Adding financial periods in advance:

  • Add future financial periods in advance as needed.
  • Previous financial periods can be created without restriction as long as no financial period has been closed.

New financial period:

  • If you need to create old financial periods, first create the preceding financial period. Create the old periods first and only after that the future periods.
  • Note that if financial periods are created in the wrong order, Netvisor support must move the financial period lock date to the correct date.
  • In that case, make sure that the status of all financial periods is open so that the lock date can be moved.

If the company’s financial period is broken:

  • Set the financial period dates correctly before making the first locks.

Edit financial periods:

  • Change the name of the financial period and the start and end dates in the financial period information.
  • Make sure that the dates do not overlap with the previous or next financial period. Make edits in such an order that overlapping dates are not saved.
  • Note that information of a closed or sealed financial period cannot be changed.
  • Contact Netvisor support if you need to delete a financial period from the system.

Active financial period: 

  • Change the active financial period if you want to make entries for both the period that is ending and the next period.
  • Set a financial period as the default financial period if you want the change to affect all users of the company from the next login or company switch onwards.
  • You can also set an active financial period for yourself other than the company’s default period. This setting is valid until the next login or company switch.
  • Select the Set link in the Active financial period column when you want to manage which of the financial periods is active for the company.
  • Check from the Active financial period widget in the upper right corner which financial period is selected as active at that moment.

Closing the financial period

Close the financial period as follows:

  1. Select the financial period to be closed in the Financial period management view.
  2. Click the Close financial period link in the Financial period closing column.

When you close the financial period, the system performs the following actions automatically:

  • Creates a unilateral receipt where the calculated profit of the financial period being closed is recorded to the balance sheet profit/loss account 2371 or 2375.
  • Creates a receipt on the first day of the next financial period, with which the financial period’s profit is transferred to the previous financial periods’ profit/loss account 2251.
  • Ensures that in balance sheet reports for different financial periods, the profit for the reporting period appears on the balance sheet financial period’s profit account.
  • Locks all accounting transactions of the financial period so that changes cannot be made without opening the closed financial period.
  • Calculates the profit of the open financial period in the balance sheet always as calculated from income accounts 3000-> from the lock date onwards.
  • Calculates other balance sheet items always from transactions from the beginning of history cumulatively.

Opening a closed financial period

Open a closed financial period as follows:

  1. Make sure that the financial period status is not sealed. The financial statements for the financial period must not have been created in the financial period archive.
  2. Select the financial period to be opened in the Financial period management view.
  3. Click the Open link in the Financial period closing column.

Note the following when opening a closed financial period:

  • Opening invalidates the unilateral receipt created when closing the financial period and opens the financial period.
  • Opening does not remove the VAT lock from the months. If necessary, perform a separate VAT lock override.

Financial period statuses:

  • Open: Open financial period.
  • Locked: The status becomes locked when you click the Close financial period link. Remove the lock by selecting the Open link in the Financial period management view.
  • Sealed: The status becomes sealed when the financial statements material has been run into the financial period archive from the financial statements composition view via the Create and archive financial statements report link. Removing the sealed status requires dismantling the financial statements material from the financial period archive.
  • Confirmed: The status appears when the material has been confirmed in the financial period archive. Remove the confirmation mark from the financial period archive if necessary.
  • Audited: Only an auditor can make this entry. The selection is found in the financial period archive when the material has first been confirmed. Remove the audit mark from the financial period archive if necessary.

Financial period archive

Utilize the financial period archive as follows:

  • Archive in the system the company’s financial statements documents related to the financial period.
  • Archive other documentation related to the financial period as well as company-related documents.
  • See more detailed instructions: Financial period archive.

Locks

Period lock

Utilize the period lock as follows:

  • Check from the field the last day of the most recently closed financial period.
  • Note that the period closing and lock opening functions always create or invalidate financial period closing receipts.
  • Move the lock date only one financial period at a time.
  • Close only the oldest of the open periods.
  • Open only the newest of the locked periods.

VAT lock

Utilize the VAT lock as follows:

  • Check from the field the last day of the month for which VAT calculation has been done.
  • Prevent the creation and editing of receipts in the locked VAT period with the VAT lock.
  • Manage the VAT lock as an accountant.
  • Override the VAT lock for an individual target month by using the VAT lock override function when the financial period is open.
  • If necessary, remove the VAT lock for the selected period without undoing the VAT decision by directly changing the VAT lock date via the Edit button.
  • Temporarily remove the VAT lock by changing the lock date if the changes have no VAT impact.
  • If the changes do have VAT impact, always use the VAT lock override and then record the updated VAT calculation in the bookkeeping.
  • After the changes, restore the VAT lock date you moved yourself. The system updates the lock date as a result of the VAT calculation decision entry and locks the transactions preceding the lock date.
  • Prefer the VAT lock override, because the override is personal. This way, other users cannot make changes to the locked period and you ensure that the month’s VAT calculation is updated to correspond to the changes.

VAT lock override

Override the VAT lock as follows:

  1. Make sure that the financial period is open.
  2. Select VAT lock override and personally open the desired VAT-locked month.
  3. Edit the necessary receipts for that month. Note that the lock is personal and for other users the month remains locked.
  4. When the changes have been made, select the Cancel override button from the VAT lock override link.
  5. Let the system take you to the VAT calculation, where VAT is recalculated.

Note the following regarding VAT lock override:

  • The override invalidates in the background the VAT receipt for that period.
  • Cancellation records a new VAT receipt with updated information.
  • See additional information if needed: VAT lock override.

Accounts payable lock

Utilize the accounts payable lock as follows:

  • Lock accounts payable if you wish before locking the VAT period (VAT recording through the VAT calculation).
  • Prevent expenses from the new financial period from being mistakenly entered into accounts payable for the old financial period when the financial period ends.
  • Use the accounts payable lock also to prevent ledger users from editing purchase invoices at the turn of the month.
  • Edit purchase invoices at the turn of the month with accountant rights if VAT is not locked.
  • Note that if purchase invoice automation is run on an invoice in a locked accounts payable period and this makes changes to the bookkeeping (for example, posts the invoice), the invoice posting date changes to the first non-locked day.

Keywords: Financial period, closing the financial period, opening the financial period, first financial period

Frequently asked questions

Question: How do I access financial period management in Netvisor?

Answer: Open the view by selecting Financial management > Financial statements > Financial period management.

Question: When do I need to create a new financial period?

Answer: Open a new financial period before closing the previous financial period so that transactions generated with the new financial period’s dates are automatically recorded to the new period.

Question: Can I change the start date of the first financial period myself?

Answer: You cannot change the start date of the first financial period directly in the system. Contact Netvisor support, provide the new date and make sure that there are no vouchers between the dates.

Question: What happens when I close a financial period?

Answer: The system creates a unilateral receipt with which the financial period’s profit is recorded to the balance sheet profit/loss account 2371 or 2375, and a receipt on the first day of the next financial period with which the profit is transferred to account 2251. The financial period’s transactions are locked.

Question: How do I open a closed financial period?

Answer: Make sure that the financial period status is not sealed, and in the Financial period management view select the Open link in the financial period’s Financial period closing column. VAT locks are not removed and must be overridden separately.

Question: How does the VAT lock override work?

Answer: Personally open the desired VAT-locked month with the VAT lock override function, make the changes and cancel the override. The system invalidates the old VAT receipt and records a new receipt with updated information.

Question: Why is it recommended to lock accounts payable at the turn of the financial period?

Answer: Lock accounts payable to prevent expenses from the new financial period from being mistakenly recorded to the old financial period and to prevent ledger users from editing purchase invoices at the turn of the month without accountant rights.

This article has been translated using an AI-based translation tool. The contents or wording of these instructions may differ from those in other instructions or in the software.


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