Close financial year (block management)

Owned by Fiona Wilson, created
Last updated: Jul 04, 2022
3 min read

This guide has been reviewed against our global client base and classed as relevant to all regions

This article outlines how to close the financial year

Once the financial year is closed (unless you have security permissions set up to allow it) you will no longer able to make any changes to transactions that effect that financial year

1. Close year option

From the estate record:

  • Click Charges/Budgets

  • Click Close Year

 

2. Close Financial Year screen

  • Close financial year ending date defaults to the end date of the current year - but can be changed where required

    When invoices haven't been raised to the financial year end date, red text will indicate this - see 2a

  • Outstanding invoices in year are identified - see step 3

  • Tick Show paid invoices to include paid invoices in the list

  • The Balance Sheet and Income & Expenditure report for the current year can be viewed below

    Any changes made to the outstanding invoices will be immediately reflected in the reports shown

 

2a. When invoices haven’t been raised to the specified financial year

Red text will indicate this

  • Hover over the red text to display more information

3. Action outstanding invoices

Any outstanding invoices need to be actioned before the year can be closed

From the Action column, click Select for options available for the selected invoice:

  • Ignore
    Use when the invoice can be ignored at this point - it can then be actioned by users (with appropriate permissions) after the financial year is closed

  • Change invoice date
    Allows you to forward-date the invoice as needed
    Date defaults to the start of the next financial year

    • Enter new invoice date, click Accept

  • Credit invoice
    If you do not need to pay the invoice, a credit can be applied

    • Enter credit note description, click Accept

  • Post expense to next financial year
    Allows you to post as a prepayment into the next financial year
    This is the same as the process covered here: Dealing with prepayments / journal transfer

  • An option to ignore or credit in bulk is also available

    • Right-click over Select for options

  • When all outstanding invoices have been updated, the Action column will display all chosen actions:

When choosing to Show paid invoices in this list, such invoices will be displayed with an Action type of None

4. Close financial year 

Once all outstanding invoices have been actioned (as described in step 3) the financial year can be closed

Clicking Proceed to close the year will carry out several processes:

  • The actions selected for all outstanding invoices will be performed

  • The date that the year is closed will be stored

  • The amounts shown on the Balance Sheet will be captured and stored against the estate for that financial year - these figures will then be used in future reports when figures for that financial year are needed to look back on (usually for comparison)

When ready to close the selected financial year:

  • Click Proceed (top right)

  • Click Yes

  • Click OK