Periods and Financial Years

Note

Periods and Fiscal Years

A fiscal year (or financial year) corresponds to twelve months for a company. In many countries, the fiscal year corresponds to a calendar year. That may not be the case in other countries.

The financial year can be divided into monthly or three-monthly accounting periods (when you have a quarterly declaration).

OpenERP’s management of the fiscal year is flexible enough to enable you to work on several years at the same time. This gives you several advantages, such as the possibility to create three-year budgets.

Defining a Period or a Financial Year

To define your fiscal year, use the menu Settings ‣ Configuration ‣ Invoicing, If there is no fiscal year define for your company then this form offer you to configure fiscal year for your company under the label No Fiscal Year Define for This Company you have to define your company fiscal year range and period and click on Apply button.

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Defining a Financial Year configuration

You can create several years in advance to define long-term budgets, use the menu Accounting ‣ Configuration ‣ Periods ‣ Fiscal Years, click on Create First enter the date of the first day and the last day of your fiscal year. Then, to create the periods, click one of the two buttons depending on whether you want to create twelve 1-month or four 3-months periods:

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Defining a Financial Year and Periods

  • Create Monthly Periods ,
  • Create 3 Months Periods .

OpenERP automatically creates an opening period to allow you to post your outstanding balances from the previous fiscal year. Notice the Opening/Closing Period checkbox for such a period.

To close a fiscal year you can also use the menu Accounting‣ Periodical Processing ‣ End of Period ‣ Close a Period.

Closing a Period

To close a financial period, for example when a tax declaration has been made, go to the menu Accounting‣ Configuration ‣ Periods ‣ Periods, Select those period(s) which you want to close and from top centered More button click on Close a Period then select Check this box and on Close Period button. You can also close period from form view of Periods by clicking on Close Period button.

Tip

Opening Closed Periods

The system administrator can re-open a period, which have been closed by mistake.

When a period is closed, you can no longer create or modify any transactions in that period. Closing a period is not obligatory, and you could easily leave periods open.

To close an accounting period you can also use the menu Accounting‣ Periodical Processing ‣ End of Period ‣ Close a Period.

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