A financial year consists of 12 financial periods. You specify each period’s dates. When you enter a transaction you have to enter its date, and the system allocates the transaction to the relevant period. The system defaults to five years of information, in other words 60 periods, but you can add more when / if necessary.
Setup and maintenance of accounting periods is done at the Company details
When you initially create the company database, the system asks for the closing date of the current financial year, as well as the year (unlimited) in which to place the current financial year. The system then generates all the periods, which you can edit later.
Which year should you use for the current year?
Usually, you would use the second year for the current year, so that you could put last year’s balances in the first year. You can enter last year’s balances as a single balance in the last period of the year, or as monthly balances.
The periods display in a hierarchic tree. Click the plus sign to expand a year into its periods, and click the minus sign to close the period display.
Add / Remove accounting years
- Click on the Add Financial Year button.
- A confirmation message displays.
- Click on the Yes button to continue.
- If you want to remove a financial year, click on the Remove Financial Year button. This is not recommended.