Closing a Financial Period

Steps to Close a Financial Period

1. Click on the “Accounting” menu.
2. Click on “Accounting Settings.”
3. Click on the “Financial Periods” card.
4. Open the financial period you want to close.
5. From the actions, click “Close.”
6. A screen titled “Next Financial Period Details” appears, with a warning message at the top: “To close the current open period from [date] to [date], please specify the opening dates for the new period.”
7. Enter the new financial period details using the following fields:
   • Start Date: This field is automatically populated and cannot be edited — the new period starts immediately after the end of the closed period.
   • Period (Required): Select the duration of the new financial period from the dropdown: “1 Year,” “6 Months,” “3 Months,” “1 Month,” or “Custom.”
   • End Date: Automatically calculated based on the selected duration and start date, and displayed as read-only — unless “Custom” is selected from the Period field, in which case you can edit the end date freely.
8. Complete the closing process by clicking “Save.”

How the System Works

• Upon closing, the system generates three accounting entries: the Profit & Loss entry, the Closing Balance entry, and the Opening Balance entry for the new period.
• The system pre-selects the duration of the new period based on the duration of the last financial period you closed — for example, if the last period you closed was “6 Months,” then “6 Months” is automatically selected for the next closing. If there is no previous closing, “1 Year” is the default duration.
• The warning message and the “Next Financial Period Details” title appear only during the financial period closing action.

Notes

• The warning message does not appear when entering the first financial period in the account, and the “Start Date” field on the first period is editable as normal.
• After closing a financial period, all transactions within the closed period become read-only.