This guide explains the management of financial periods in Netvisor. The guide covers the creation, editing, closing, and opening of financial periods. You can access financial period management via the path Financial Management > Financial Statements > Financial Period Management.
Multiple financial periods can be open simultaneously, to which transactions are recorded (or automatically recorded by the system). A user performing bookkeeping can create new financial periods, and during use, a default financial period can be selected or the financial period can be changed only for the duration of the session (login), after which the company's current default financial period 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 financial period according to the date. However, if the period is locked, the system records the transaction on the next open financial period. A notification is given during the creation of the receipt/invoice. Financial period date information is utilized when calculating profit and balance sheet so that profit/loss handling works correctly at the financial period change, regardless of whether the financial period is closed. This allows reporting for the period between two financial periods.
First financial period
When the service is opened, the current calendar year is formed as the first financial period by default. Its information can be changed if necessary using the Edit Financial Periods button, but the start date of the first financial period cannot be directly edited in the system. If there is a need to edit the start date of the first financial period, you should contact Netvisor support. In this case, inform our support of the new date to be set for the financial period 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 financial period 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 financial period. Closing the financial period and recording the profit for the next period happens automatically when the period is locked. This is done by clicking the Close Financial Period link. More information: Comparison data for the previous financial period.
Financial period management
Creating a new financial period
Before closing the financial period, a new financial period must be opened in the system, where transactions generated with the new financial period's dates are automatically recorded.
The system's automation, including the payments traffic program, automatically retrieves transactions immediately on the first day of the year, and these transactions are recorded for the new period if the financial period changes. If a new financial period 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 financial period. More information: Renumbering receipts.
When recording for the new period, receipt numbering by voucher 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 financial periods can be added in advance as needed. Previous financial periods can also be established without restrictions as long as no financial period has yet been closed.
New financial period: If there is a need to establish a previous financial period, it is advisable to do it as the first addition among the financial periods, i.e., first the old periods, then the future ones. If financial periods are established in the wrong order, the financial period's lock date must be moved to the correct date by support. In this case, all financial periods must be in open status.
If the company's financial period is broken, the financial period dates must be set correctly before making the first locks.
Edit financial periods: In the financial period's information, the name of the financial period and the start and end dates can be changed. Editing requires that the dates are not overlapping with the previous or next financial period, meaning edits must be made in such an order that dates do not save as overlapping. Information of a closed or sealed financial period cannot be changed. If there is a need to delete a financial period from the system, you should contact Netvisor support.
Active financial period: You can make entries for the ending period and the next period by changing the active financial period. If the change is made to the default financial period, it affects all users of that company upon the next login or company switch. You can set an active financial period 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 financial period can be managed from the Set link in the Active Financial Period column, which financial period is active for the company. The financial period selected as active at that moment is visible from the Active Financial Period widget in the upper right corner.
Closing the financial period
The financial period can be closed from the Close Financial Period link in the Financial Period Closing column.
When the financial period is closed, a unilateral receipt is created by the system, where the calculated profit of the closing financial period 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 financial period, transferring the financial period's profit to the previous financial periods' profit/loss account 2251. Thus, the profit for the reporting period appears on the balance sheet financial period's profit account in different financial periods' balance reports. Closing the financial period locks all accounting transactions of the financial period so that changes are not possible without opening the closed financial period. The profit of the open financial period 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 financial period
Opening a closed financial period invalidates the unilateral receipt created during the financial period's closing and opens the financial period. 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 financial periods whose financial statement has not been formed in the financial period archive, meaning the financial period's status is not sealed. The financial period can be opened from the Open link in the Financial Period Closing column.
Financial period statuses:
Open: Open financial period.
Locked: The status becomes locked when the close financial period link is clicked. Removing the lock is done from the financial period management view's Open link.
Sealed: The status becomes sealed when the financial statement material is run into the financial period 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 financial period archive.
Confirmed: When the material is confirmed in the financial period archive. The confirmation mark can be removed from the financial period archive if necessary.
Audited: Only an auditor can make this. The selection is found in the financial period archive when the material is first confirmed. The audit mark can be removed from the financial period archive if necessary.
Financial period archive
In the financial period archive, it is possible to archive the company's financial statement documents related to the financial period in the system, as well as other related documentation and company-related documents. Detailed instructions can be found on the Financial Period Archive page.
Locks
Period lock
Shows the last day of the most recently closed financial period. Since the period closing and lock opening functions always create or invalidate financial period closing receipts, the lock date can only be moved one financial period 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 financial period 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 financial period 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
Accounts payable lock
Accounts payable can be locked before the VAT period is locked (VAT recording through the VAT calculation). This is especially useful at the end of the financial period to prevent expenses from the new financial period from being mistakenly entered into the accounts payable for the old financial period. The accounts payable 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: Financial period, closing the financial period, opening the financial period, first financial period
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