About period-end closing procedures

Follow your company's internal procedures to determine the prerequisites to closing a financial period.
Your company might require the following tasks to be completed before a period is closed:

• Performing allocations
• Generating recurring documents and releasing them
• Performing revaluation of foreign currency accounts
• Generating and reviewing the trial balance

To close a period in General ledger, you first have to perform the closing operations in the subledger workspaces you are using.
These include the following:

• Customer ledger
• Supplier ledger
• Cash management
• Inventory
• Fixed assets

A period is considered closed only when it has been closed in the General ledger workspace by using the Close financial periods (GL503000) window.
This window gives you information about the status of periods in the Supplier ledger, Customer ledger, Cash management, Inventory, and Fixed assets workspaces. If a period has not been closed in any of the workspaces, you can close it there.

Closing a period in general ledger initiates the generation of auto-reversing batches if the Generate auto-reversing entries on period closing check box is selected in the General ledger preferences (GL102000) window. You should never close the last activated financial period; always activate one or more financial periods before you close a period.

A financial period can be closed in the General ledger workspace only if it has been closed in the Supplier ledger, Customer ledger, Cash management, Inventory, and Fixed assets workspaces. You need to perform the closing procedure in only the subledger workspaces that are activated in your system.

A period can be closed in Customer ledger, Supplier ledger, Cash management, Inventory, and Fixed assets as follows if in the workspace there are no documents with the Released, (Unposted), Balanced, or On hold status that are to be posted to this period:

• To close a period in Supplier ledger, use the Close financial periods (GL503000) window.
• To close a period in Customer ledger, use the Close financial periods (GL503000) window.
• To close a period in the Cash management workspace, use the Close financial periods (GL503000) window.
• To close a period in the Inventory workspace, use the Close financial periods (GL503000) window.
• To close a period in the Fixed assets workspace, use the Close financial periods (GL503000) window.

When you close a given financial period, all preceding active periods will be closed as well.

During the initial stage of using Visma Net, if you decided to add one or more periods before the first financial period, you can activate those periods (even if you have one or more closed periods) and post the required transactions to them.
Later, to be able to close any of the later periods, you should close those periods first.

In Visma Net, year-end closing is performed automatically when you close the last period of the financial year.
Thus, closing the last period of the financial year should be done only when the company is ready to close the general ledger financial year.
Period-end closing for the last period of the financial year must be completed in all other active workspaces before users can perform year-end closing in the General ledger workspace.

The year-end closing may include the following stages:

• At the end of the financial year, generating periods for the new year and activating at least one of them
• Carrying out the operations according to your company's "year-end" check list
• Closing the last period in general ledger and fulfilling all the requirements

During closing of the financial year, the balance of YTD net income account updates the Retained earnings account, which accumulates the net income over years.
After that, the balance of the YTD net income account is reset to zero for a new financial year.
The balances of the balance sheet accounts are simply transferred into the new financial year, while balances of other accounts are reset to zeros.