When Financial year ends, we have to do year end process. This blog post will help you to understand all the steps that needs to be done when Fiscal Year ends.
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We will start with how to configure Fiscal Year. New Fiscal Year has to configured before closing a previous year.
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To do that, go to Accounting> Configuration> Periods> Fiscal Years.
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Click on Create to create a new Fiscal Year. Enter Fiscal Year Name, Code, Start Date and End Date of new fiscal year.
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After that, you will find 2 buttons, Create Monthly Periods and Create 3 Months Periods.
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Clicking on the button, system will create Monthly or Quaterly periods.
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After creating New Fiscal Year and Periods, we can start to generate opening entries.
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Go to Accounting> Periodical Processing> End of Period> Generate Opening Entries. When you click on the menu, a wizard will open as given in image.
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In Fiscal Year to close, select last Fiscal year from the dropdown.
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There is a Opening Entries Journal, here you will find the journals whose type is Opening/Closing Situation.
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To know more, please go to Accounting> Configuration> Journals> Journals. In the list of all Journals, you will find Opening Entries Journal as shown in image.
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In the configuration of the journal, as mentioned earlier, type should be Opening/Closing Situation.
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In the form view of the journal, there is an Advance Setting tab. There you will find several checkboxes.
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You have to check the checkbox Centralized Counterpart. Please see the above screenshot.
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After generating opening entries, you can see all those entries at Accounting> Journal Entries> Journal Entries.
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Once Opening Entries are created, you can close Fiscal Year.
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Go to Accounting> Periodical Processing> End of Period> Close a Fiscal Year.
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On clicking Close a Fiscal Year, a wizard will open.
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Select the Fiscal Year that needs to be closed from the list of Fiscal Years.
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After selection, click on Close Fiscal Year button that will close the selected Fiscal Year and it's Periods.
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Once you close Fiscal Year, you cannot log any transaction in any Period of that Fiscal Year.
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If you go to Accounting> Configuration> Periods> Fiscal Years, you can check that status of the Fiscal Year is Closed.
Hope this post will be useful for all OpenERP (Odoo) users.
