Closing a Financial Period in a Company: Process Activity

In this activity, you will learn how to close a financial period in an individual company in all subledgers and the general ledger at the same time.

Story

Suppose that as an accountant, you need to close the 2024 financial year in all the subledgers and the general ledger in the SweetLife Fruits & Jams company and in the Muffins & Cakes company.

Configuration Overview

In the U100 dataset, the following tasks have been performed to support this activity:

  • On the Companies (CS101500) form, the MUFFINS and SWEETLIFE companies have been defined.
  • On the Branches (CS102000) form, the MHEAD branch of the MUFFINS company has been created, and the HEADOFFICE branch of the SWEETLIFE company has been created.
  • On the Enable/Disable Features (CS100000) form, the Centralized Period Management feature has been disabled so periods can be managed separately in each company.
  • On the Inter-Branch Account Mapping (GL101010) form, the account mapping rules between the Muffins & Cakes head office branch (MHEAD) and the SweetLife head office branch (HEADOFFICE) have been defined.

Process Overview

In this activity, you will review the statuses of financial periods on the Company Financial Calendar (GL201100) form, and close the financial periods of the SweetLife and Muffins companies on the Manage Financial Periods (GL503000) form.

System Preparation

Launch the MYOB Acumatica website with the U100 dataset preloaded, and sign in as an accountant Nenad Pasic by using the pasic username and the 123 password.

Step 1: Reviewing the Statuses of Financial Periods

To review the statuses of financial periods, do the following:

  1. Open the Company Financial Calendar (GL201100) form.
  2. In the Selection area, specify the following settings:
    • Company: SWEETLIFE
    • Financial Year: 2024

    Notice that all periods in the 2024 financial year are open.

Step 2: Closing a Financial Year in SweetLife Fruits & Jams

To close the 2024 financial year and the preceding years in the SweetLife company, do the following:

  1. While you are still on the Company Financial Calendar (GL201100) form with the SWEETLIFE company selected, on the More menu, click Close Periods.
  2. On the Manage Financial Periods (GL503000) form that opens, select the unlabeled check box for the 13-2024 period. The check boxes for the preceding periods are automatically selected.
  3. On the form toolbar, click Unposted Documents to verify that no unposted documents exist for these periods. The system opens the Unreleased AP Documents (AP656100) report listing one unposted AP payment. Process this payment as follows:
    1. Click the link in the Reference Nbr. column.
    2. On the Checks and Payments (AP302000) form, which opens, review the payment.
    3. In the Application Date box, change the date to 1/30/2025. Notice that the application period of the payment has changed to 01-2025.
    4. On the form toolbar, click Save to save your changes.
    5. Close the Checks and Payments form.
  4. On the Manage Financial Periods form, click Unposted Documents again. In the message that is displayed, click OK.

    There are no unposted documents for the selected periods in the branches of the SweetLife company and you can proceed with closing the periods.

  5. On the form toolbar, click Process.

    The system displays a message that the selected range of periods will be closed in subledgers and in the general ledger. Click OK.

  6. In the Processing pop-up window, which opens, click the Processed tab and review the list of processed records. Click Close.
  7. Open the Company Financial Calendar form.
  8. In the Summary area, specify the following settings:
    • Company: SWEETLIFE
    • Financial Year: 2024

    The periods in the specified range have changed their status to Closed and the Closed in AP, Closed in AR, Closed in IN, and Closed in CA check boxes for these periods are selected.

Step 3: Closing a Financial Year in Muffins & Cakes

To close the 2024 financial year in the Muffins & Cakes company, do the following:

  1. Open the Manage Financial Periods (GL503000) form.
  2. In the Company box, select MUFFINS.
  3. In the Action box, select Close.
  4. In the To Year box, select 2024.
  5. Select the unlabeled check box for the 13-2024 period. The check boxes for the preceding periods are automatically selected.
  6. On the form toolbar, click Unposted Documents to verify that no unposted documents exist for these periods.
    Tip: If there are unposted documents in any of the subledgers in the selected periods, when you invoke this action, the reports for the subledgers will be displayed showing all unposted documents in each subledger. Review each of the documents in the reports and either post it or reassign to a different period (as described in Step 2 of this activity). Once all documents in all the periods are posted, you can proceed to close the periods.
  7. On the form toolbar, click Process.

    The system displays a message that the selected range of periods will be closed in subledgers and in the general ledger. Click OK.

  8. In the Processing pop-up window, which opens, click the Processed tab and review the list of processed records. Click Close.
  9. Open the Company Financial Calendar (GL201100) form.
  10. In the Summary area, specify the following settings:
    • Company: MUFFINS
    • Financial Year: 2024

    The periods in the specified range have changed their status to Closed and the Closed in AP, Closed in AR, Closed in IN, and Closed in CA check boxes for these periods are selected.