How do I perform fiscal accounting closing in Metro ERP?
To perform a fiscal accounting closing in Metro ERP, you need to follow a series of steps to ensure that all financial records are accurately closed for the fiscal year. Here’s a detailed guide on how to do this:
1) Go to the Accounting Module. By Clicking on the 'Accounting' application.
2) Ensure All Transactions are Posted
Before closing the fiscal year, make sure that all transactions for the year are posted. This includes:
- Invoices (Customer and Vendor)
- Payments
- Bank Statements
- Journal Entries
3) Reconcile Accounts
Reconcile all bank statements and ensure that all accounts are balanced. This helps to identify any discrepancies or unrecorded transactions.
4) Review Financial Statements
Generate and review key financial reports to ensure accuracy:
- Profit and Loss Statement
- Balance Sheet
- Trial Balance
5) Manage Fiscal Years
In most cases, the fiscal years last 12 months. If it is your case, you just have to define what is the last day of your fiscal year in the accounting settings. By default, it is set on the 31st December.
6) However, there might be some case. For example, if it is the first fiscal year of your business, it could last more or less than 12 months. In this case, some additional configuration is required.
Note: You only have to create fiscal years if they last more or less than 12 months.
In accounting ‣ configuration ‣ Fiscal years. Click on "Fiscal Years" link to configure your fiscal years.
7) Create a Fiscal Year by entering the name, start date, and end date, then save it.
8) Navigate to the "Accounting > Lock Dates" menu to lock the fiscal year to prevent any further changes.
9) This action will open "Fiscal Period" pop-up window, now set the "Lock Date" to the last day of the fiscal year for all users and advisors.
10) Click on "Save" button.
11) If the button is not saved, it means there are still unposted entries in the period you want to lock. You should either post, delete, or cancel these entries.
12) Click on the "Show Unposted Entries" button to view all unposted entries. You should then post, cancel, or delete them as needed.
Afterward, verify that your Balance Sheet, P&L, and Trial Balance reports match perfectly.
13) Then after set the lock dates and click on save button.
14) This will prevent journal entry creation or modification prior to the defined date for all users. As a closed period, all accounting operations are prohibited once you set a lock date.
15) Start the New Fiscal Year
Ensure the new fiscal year is set up and ready for new transactions:
- Go to Accounting > Configuration > Fiscal Years.
- Create a new fiscal year if it hasn’t been created yet.
16) Verify Carry Forward Balances
Ensure that balances are correctly carried forward to the new fiscal year:
- Verify opening balances for accounts such as Cash, Accounts Receivable, Accounts Payable, etc.
To get more details on how do I fiscal accounting closing in Metro ERP, please do contact us at support@metrogroup.solutions