Fiscal Year Management

This guide explains the management of fiscal years in Netvisor. The guide covers the creation, editing, closing, and opening of fiscal years. You can access fiscal year management via the path Financial Management > Financial Statements > Fiscal Year Management.

Multiple fiscal years can be open simultaneously, to which transactions are recorded (or automatically recorded by the system). A user performing bookkeeping can create new fiscal years, and during use, a default fiscal year can be selected or the fiscal year can be changed only for the duration of the session (login), after which the company's current default fiscal year is restored upon the next login or company switch. Changing the default period affects all users (from the next login or company switch after the change).

Receipts created by the system's automation are recorded on the correct fiscal year according to the date. However, if the period is locked, the system records the transaction on the next open fiscal year. A notification is given during the creation of the receipt/invoice. Fiscal year date information is utilized when calculating profit and balance sheet so that profit/loss handling works correctly at the fiscal year change, regardless of whether the fiscal year is closed. This allows reporting for the period between two fiscal years.

First fiscal year
When the service is opened, the current calendar year is formed as the first fiscal year by default. Its information can be changed if necessary using the Edit Fiscal Years button, but the start date of the first fiscal year cannot be directly edited in the system. If there is a need to edit the start date of the first fiscal year, you should contact Netvisor support. In this case, inform our support of the new date to be set for the fiscal year and ensure that there are no receipts left in the accounting between the old and new dates (can be checked from receipt browsing) and any edits to financial statement reports are saved to your own computer, as changing the fiscal year date restores default reports to the financial statement view.

During system implementation, the opening balance sheet and income statement can be entered for the previous fiscal year. Closing the fiscal year and recording the profit for the next period happens automatically when the period is locked. This is done by clicking the Close Fiscal Year link. More information: Comparison data for the previous fiscal year.

Fiscal year management

Creating a new fiscal year

Before closing the fiscal year, a new fiscal year must be opened in the system, where transactions generated with the new fiscal year's dates are automatically recorded.

The system's automation, including the payment program, automatically retrieves transactions immediately on the first day of the year, and these transactions are recorded for the new period if the fiscal year changes. If a new fiscal year has not been established, all receipts generated by the system may have the receipt number "1" (one). This can be corrected by renumbering the receipts immediately after establishing the new fiscal year. More information: Renumbering receipts.

When recording for the new period, receipt numbering by receipt type starts from the beginning (1) by the system. The numbering can be changed by entering the desired number for an existing receipt, after which the numbering continues from there.

Future fiscal years can be added in advance as needed. Previous fiscal years can also be established without restrictions as long as no fiscal year has yet been closed.

New fiscal year: If there is a need to establish a previous fiscal year, it is advisable to do it as the first addition among the fiscal years, i.e., first the old periods, then the future ones. If fiscal years are established in the wrong order, the fiscal year's lock date must be moved to the correct date by support. In this case, all fiscal years must be in open status.

If the company's fiscal year is broken, the fiscal year dates must be set correctly before making the first locks.

Edit fiscal years: In the fiscal year's information, the name of the fiscal year and the start and end dates can be changed. Editing requires that the dates are not overlapping with the previous or next fiscal year, meaning edits must be made in such an order that dates do not save as overlapping. Information of a closed or sealed fiscal year cannot be changed.

Active fiscal year: You can make entries for the ending period and the next period by changing the active fiscal year. If the change is made to the default fiscal year, it affects all users of that company upon the next login or company switch. You can set an active fiscal year for yourself other than the company's default period, in which case the setting is valid until the next login or company switch. The active fiscal year can be managed from the Set link in the Active Fiscal Year column, which fiscal year is active for the company. The fiscal year selected as active at that moment is visible from the Active Fiscal Year widget in the upper right corner.

Closing the fiscal year
The fiscal year can be closed from the Close Fiscal Year link in the Fiscal Year Closing column.

When the fiscal year is closed, a unilateral receipt is created by the system, where the calculated profit of the closing fiscal year is recorded on the balance sheet profit/loss account 2371 or 2375. At the same time, a receipt is created for the first day of the next fiscal year, transferring the fiscal year's profit to the previous fiscal years' profit/loss account 2251. Thus, the profit for the reporting period appears on the balance sheet fiscal year's profit account in different fiscal years' balance reports. Closing the fiscal year locks all accounting transactions of the fiscal year so that changes are not possible without opening the closed fiscal year. The profit of the open fiscal year is always calculated in the balance sheet as calculated from income accounts 3000-> (from the lock date onwards). Other balance sheet items are always calculated from transactions from the beginning of history, meaning their calculation is cumulative.

Opening a closed fiscal year
Opening a closed fiscal year invalidates the unilateral receipt created during the fiscal year's closing and opens the fiscal year. Opening does not remove the VAT lock from the months, but a separate VAT lock override must be done for the months if necessary. Opening can only be done for fiscal years whose financial statement has not been formed in the fiscal year archive, meaning the fiscal year's status is not sealed. The fiscal year can be opened from the Open link in the Fiscal Year Closing column.

Fiscal year statuses:

Open: Open fiscal year. 
Locked: The status becomes locked when the close fiscal year link is clicked. Removing the lock is done from the fiscal year management view's Open link.
Sealed: The status becomes sealed when the financial statement material is run into the fiscal year archive from the financial statement composition view's Create and Archive Financial Statement Report link. Removing the sealed status requires the dismantling of the financial statement material from the fiscal year archive.
Confirmed: When the material is confirmed in the fiscal year archive. The confirmation mark can be removed from the fiscal year archive if necessary.
Audited: Only an auditor can make this. The selection is found in the fiscal year archive when the material is first confirmed. The audit mark can be removed from the fiscal year archive if necessary.

Fiscal year archive
In the fiscal year archive, it is possible to archive the company's financial statement documents related to the fiscal year in the system, as well as other related documentation and company-related documents. Detailed instructions can be found on the Fiscal Year Archive page.

Locks

Period lock

Shows the last day of the most recently closed fiscal year. Since the period closing and lock opening functions always create or invalidate fiscal year closing receipts, the lock date can only be moved one fiscal year at a time. Only the oldest of the open periods can be closed, and only the newest of the locked periods can be opened.

VAT lock

Shows the last day of the month when VAT calculation was done. Prevents the creation and editing of receipts in the locked VAT period. The accountant can manage the system's VAT lock. The VAT lock for a specific target month can be overridden with "VAT lock override". The fiscal year must be open. If necessary, the VAT lock can be removed for the selected period without undoing the VAT decision by directly changing the VAT lock date from the "Edit" button. If the changes do not have VAT impact, the VAT lock can be removed by temporarily editing the lock date. If the changes do have VAT impact, always use the VAT lock override, after which the changed VAT calculation is recorded in the accounting. If the VAT lock date has been moved by yourself, it is very important to restore the lock date to its original state after the changes. The system updates the lock date as a result of the VAT calculation decision entry and locks the events preceding the lock date. We recommend always using the VAT lock override, as the lock override is personal to the user who bypassed the lock, ensuring that other users cannot make changes to the locked period and ensuring that the month's VAT calculation is updated to reflect the changes. 

VAT lock override

With this option, you can personally open the desired VAT-locked month. The fiscal year must be open. This allows editing of receipts for that month. The lock is personal, so for others, the month is locked. When the necessary changes are made, cancel the override from the VAT lock override link with the "Cancel Override" button. The system takes the user to the VAT calculation, where VAT is recalculated. In the background, the override has invalidated the VAT receipt for that period, and the cancellation records a new VAT receipt with updated information. More information: VAT lock override

Purchase ledger lock

The purchase ledger can be locked before the VAT period is locked (VAT recording through the VAT calculation). This is especially useful at the end of the fiscal year to prevent expenses from the new fiscal year from being mistakenly entered into the purchase ledger for the old fiscal year. The purchase ledger lock can also be used to prevent ledger users from editing purchase invoices at the turn of the month. In this case, editing with accountant rights is possible to handle month-end tasks (provided VAT is not locked).

Keywords: Fiscal year, closing the fiscal year, opening the fiscal year, first fiscal year

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