Fiscal Year

iXERP provide a fiscal years settings to map your annual accounting cycle, Fiscal Year feature in iXERP is used to separate the accounting periods from each other. By default Fiscal Year feature follow a normal Calendar Year, Jan 01 – Dec 31, although you can define your fiscal year according to your accounting period.

Settings > Setup > Fiscal Year

When you start a new company, you should check that the Fiscal Year is setup correctly, if it is not, then you should start creating your Fiscal Year. After creating your Fiscal Year you should set this new Fiscal Year on your company by selecting Settings > Company Setup.

The default Fiscal year in iXERP is a normal calendar year, so If your fiscal year is different then you have to modify the Fiscal Year to suite your business.
for example: if the first default year is setup as Jan 01 2020 – Dec 31 2020 and your starting Fiscal Year should be Jul 01 2020 – Jun 30 2021
Follow the below steps to correct it:

• First create or modify the current fiscal year for a short dummy year, Jan 01 2020 – Jun 30 2020
• Create another Fiscal Year Jul 01 2020 – Jun 30 2021
• Set the company to use the new created fiscal year
• Close or delete the default or modifies fiscal year Jan 01 2020 – Dec 31 2020
• Close and delete the short dummy year Jan 01 2020 – Jun 30 2020 if it is different than the default year
• Create the previous Fiscal Year Jul 01 2019 – Jun 30 2020
• Close the previous Fiscal Year if it is not needed (You may need it open to record your opening balances)

General considerations

• You can have several Fiscal Years open at the same time, but you use only one of them as current year or accounting period.
• When you reach the end of your Fiscal Year, you have to create another new Fiscal Year.
• When you want to switch Fiscal Year on your company, go into company setup and switch to any of the created fiscal years.

You will now be able to enter your transactions to the current or past year, please note the following:

• Your document numbers will increase irrespective of the fiscal year you process in.
• Change the process date to be in the correct fiscal year.
• When you have finished your year-end entries, you may close the Fiscal Year.
• A closed Fiscal Year can no longer be used for entries.

Closing a Fiscal Year (Year End)
iXERP automate the closing of Fiscal Year to be easier and with no mistakes from manual entry, when a Fiscal Year is closed, the difference between all asset and liability accounts are brought forward as automatically created Journal Entry specially for this purpose, where the Default account for Retained Earnings is credited if this is a profit and debited if there is a loss, and the default account for Profit/Loss Year is debited if this is a profit, and credited if there is a loss. Please make sure that these accounts are created and set up correctly in the General Ledger and System Setup, by doing this step the fiscal year is closed and the year closing Journal is created.