Roll Over Financial Years
- Michelle Russell
Analytics
If a transaction has an Effective Date in the next financial year, the year must first be set up before the transaction can be posted to the General Ledger.
How to Open a New General Ledger Financial Year
Navigate to General Ledger > Setup in the main menu, then to the Years tab.
Select the current financial year in the Financial Years list and click Copy.
Change the Financial Year to the following year. e.g. if the current year is 2010 change it to 2011.
Change the year in the Description field. Change the Year Start Date to be one year later. e.g. if the current start date is 01/01/09 update it to 01/07/10.
Ensure the Period Type is set to Monthly. The Status will be Inactive by default.
Set Calc Opening Balances to Yes. Opening balances will need to be recalculated after the current financial year has been finalised. They may also be recalculated at any time.
Click Save. The new financial year is created.
Review the Periods table on the right of the tab and check that the start and end dates for each period are correct.
Highlight the new financial year in the Years table and select the Open Financial Year button.
In the Question popup window, click Yes.
In the Generate all GL accounts from subcode definitions popup window, click Yes. General Ledger accounts will be created for all companies, branches and cost centres defined in the General Ledger Setup.
Click OK in the Account creation is Complete popup window.
The Initialise Opening Balances popup window will be displayed:
The new financial year should now be open and available for posting transactions.
How to Roll Over a New General Ledger Financial Year
Navigate to General Ledger > Setup in the main menu, then to the Years tab.
Select the current financial year in the Financial Years list and click Recreate Opening Balances.
The closing balances of the balance sheet accounts of the previous year will be rolled over to the opening balances of the current financial year.
The balances of the current year earnings accounts of the previous year will be transferred to the retained earnings accounts of the current year.
Opening Profit and loss account balances will be set to zero for the current financial year.