Create a fiscal year and accounting periods record for a specific business entity in the system. This sets the scope of the fiscal year and accounting period beginning and cut-off and is the foundation for financial transactions, ledger postings and budget encumbrance.
1. From the homepage, go to Finance module.
2. Navigate to the General Ledger and Fiscal Year.
1. Click the Create New button.
2. Enter the Fiscal Year Name and select the Business Entity.
Note: Once the BE is selected, the system automatically populates the start date based on 1 day after the previous FY end date.
3. Populate the following:
- Start Date of the fiscal year - this field is only editable if there are no previous Fiscal Years, otherwise the value will be the End Date of the previous Fiscal Year + 1 day. The Start Date of the first Accounting Period will be the Start Date of the Fiscal Year.
- End Date of the fiscal year - the End Date of the Fiscal Year is the End Date of the final Accounting Period of the Fiscal Year.
- Number of accounting periods (default = 12, configurable in GL Settings)
- Accounting period: Week, Quarter, Month, Year
4. Once done, click the Save and Close button.
- Fiscal year statuses:
- Open - there is at least 1 Accounting Period in the Fiscal Year that is open, or all the Accounting Periods are closed but there exists possibility of re-opening at least one of the Accounting Periods. For example, the Fiscal Year remains open until the financial audit is finalized and approved.
- Closed - all Accounting Periods for the Fiscal Year are closed and cannot be re-opened. For example, the Fiscal Year is submitted for closure upon approval of the finalized financial audit report.
- If the user changes the End Date of an Accounting Period, the Start and End Dates of all future Accounting Periods (including those of future Fiscal Years) will be shifted by the same number of days. Note that this may result in a Fiscal Year that is not 12 months long.