When closing a fiscal year, no other modifications allowed, all balance deferral accounts will have opening entries, and all unreconciled deferral accounts will have remained entries.

When closing a period, only modifications prohibited, all entries remain.

My question is that can we close a period like closing a fiscal year.

Thank you

Anyone, any ideas?

Hi Orodae,
You should be able to do it. Closing/opening process is not very well documented (or I could find only separate pieces of information in forums but not really in the documentation). On top of that I am not sure if this is working on multi-company environments.

This is the reason why I wrote a module for that (http://www.openobject.com/forum/topic15712.html to be renamed as multi_company_account_ifrs.zip and copied into addons directory).

Hereafter you will find the explanation/procedure on the closing part that can maybe help you (this procedure works for sure in my module but I cannot be sure about the standard ones even if it should be very similar):

==================================
ACCOUNTING CLOSING/OPENING PROCESS
==================================
O.PRELIMINARY SETUP:
- Create a specific account type for Period end process with the following parameters:
(Financial Management -> Configuration -> Financial accounting -> Financial Accounts)
Name: 'Period closing'
Code: 'closing'
Sign: 'Positive',
Deferral Method: 'None',

- For all account types, setup the account type « deferral method » to determine how the information is
copied from one year to another:
1.'none': accounts for which you dont want any information to be passed to the new year
2.'unreconciled': Accounts for which you need to transfer unreconciled information
3.'detail': copy all account details from the closing year to the new one.
4.'balance': copy only the balance of previous year into new year

- Create an account 'Opening Balance Account' for the centralized moves:
(Financial Management -> Configuration -> Financial accounting -> Financial Accounts)
Name: 'Opening Balance Account'
Code: OBA
Parent: none
Account Type: 'Period closing'
Reconcile: false
Display History: true
Internal Type: 'Others'
If needed, create in the same way a 'Closing Balance Account' ('CBA').

- Create a new Journal 'Opening Balance Journal' to centralize the opening moves
(Financial Management -> Configuration -> Financial Journals)
Type: 'Situation',
View: 'Journal View',
Entry Sequence: 'Account Journal',
Default Debit Account: 'OBA Opening Balance Account',
Default Credit Account: 'OBA Opening Balance Account',
Centralized Counterpart: true
others parameters: false
If needed, create in the same way a 'Closing Balance Journal'.

- Other checkings:
1.Check that all your accounts have the correct « account type ».
2.Create a balance sheet summary income account (Net Income - 20cy[closing year]). Equity account aimed
to sum up all net income for the year to be closed.
3.Validate all transaction and postings (Financial/Periodical Processing/Validate account moves).

1. CLOSING ANY PERIOD PROCESS (During the Year)
When a month/quarter/year is finished and all movements of the period are accounted (cy=closing year, ny=new year):
- Reconcile all accrual accounts for the period (accounts payable and receivable, etc.).
- Issue the Statement of Income for the previous period.
- Make a backup of your database.
- Run the 'Multi-Company Close Period Wizard' for the selected company and periods (month/quarter or year) which
perform the following:
- The income and expense account transactions for this period are summed up into a balance sheet summary income
account (« Net Income - 20cy », Equity Account)
- Transaction details of income and expenses accounts are transfered to the closing journal as centralized entries
for the prior period.
- Income and expense accounts balances are zeroed with regard to the period transactions and readies the accounts for
the start of a new monthly/quarterly period.
- In a Period/year-End Journal, for each account depending on « Deferral Method »:
1.'none': nothing done and no account information transferred from the closing period/year to the new one
(usually used for view and P&L accounts: expense/income)
2.'unreconciled' : moves only « unreconciled entries » (eg: unpaid invoices) from the closing period/year to the
new one (usually used for receivables and payables accounts).
3.'detail': copy all account details from the closing period/year to the new one. (eg for Equities).
4.'balance': create only one move in the new period/year holding the account balance of the previous one (used for
most of the other accounts)
- The account_journal_period and account_period table states are set to 'done' for the selected periods.
- During the year, as many closing period process can be done (1 every month/quarter or only once a year)

2.CLOSING FISCAL YEAR PROCESS:
- Apply the CLOSING ANY PERIOD PROCESS for the last period/year (eg: December, 04/20cy or 12/20cy).
This usually occurs in the first weeks of the next fiscal period/year.
- Create a special adjustment period (13th) in the closing year (eg: 13/20cy) with date 31/12 and parameter
'Opening/closing Period' (Which allows overlapping periods).
- Create any late-arriving transactions (after period/year-end) and any balance sheet adjustments between prior
year and new year deemed necessary by the accountant in a special adjustment period (13th month).
- When all transaction are accounted for the closing year (however many weeks/months later):
A. Preliminary steps:
1.Make a backup of the database
2.Transfer the 'Net Income - 20cy' account balance into 'Retained Earnings' for corporations or 'Owner Investments'
for Limited-Companies/Partnerships/Sole-Proprietors and this net income account then has a zero balance and can be made inactive.
3.If the organization is a corporation and is declaring a year-end dividend then debit Retained Earnings for the
full amount of the dividend and credit each Shareholder account for their share of the dividend.
(Retained Earnings = Beginning RE + Incomes ￢ﾀﾓ dividend, could be negative in case of loses)
4.Apply the CLOSING ANY PERIOD PROCESS to the previous adjustment sub-period (13th month). This will leave only new
year transaction entries in the income and expense accounts.
5.Official year-end statement of financial position and Statement of Income can now be generated.
6.Create a new 'Net Income -20ny[new year]' account (not necessary at that step but need for 1st period closing).
B. Opening the new fiscal year :
- Create a new fiscal period/year (eg: 20ny) and sub-periods and enter all new period/year transactions into the new
period (eg: 01~04/20ny or 01~12/20ny).
- Create one period (eg: 00/20ny) with date 01/01 and parameter 'Opening/closing Period' (Which allows overlapping periods).
This period will be used to store all transactions for the opening balance, (calculated from the previous period balance)
- Run the 'Multi-Company Period Opening Wizard" for the selected fiscal year and company. The following process will be executed:
- According to deferral method, creates new moves in the first period of new fiscal year
- Launches "reconcile" for move_line
- Updates the end_period_journal in the fiscal_year
C. Run the 'Multi-company Close Fiscal Year Wizard' for the selected fiscal year and company.
- The account_journal_period states are set to 'done' for the fiscal year.
- The account_period table states are set to 'done' for the fiscal year.
- The account_fiscalyear states are set to 'done' for the fiscal year.



Eric

Hi,

Thank you. I would try and we would obviously have serious discussion on this!

Dear Eric,

I will start testing your module... I assume it will work with no problem in a single company environment.

How is it going for the module up to now?

Best regards,