About year end and audit adjustments

[kinland]

My company’s year end is on 31-Jan of every year and this is my first year to do the procedure of year end by using this accounting software.
I will do the year end very soon. Do I only click the icon “set period” on the summary page and change to the new financial year just like below screen shot ? No more other steps ?

Moreover, our audit firm will carry out yearly audit after several months later. If some audit adjustments for prior financial year will be produced, do I recover the prior financial year by changing the above screen shot to Year 2017/2018 ? After input the audit adjustments to the prior year and then change back to this financial year Yr 2018/2019?

[novica]

@kinland

No more other steps ?

Yes.

@kinland

After input the audit adjustments to the prior year and then change back to this financial year Yr 2018/2019?

You don’t have to change the period to enter the adjustments. You can enter the adjustments and print out the needed reports.

[kinland]

@novica

You don’t have to change the period to enter the adjustments. You can enter the adjustments and print out the needed reports.

Thanks for your reply. But this adjustments belongs to prior year, it’s better to input to prior year’s ledger. For example, Debit expense item & Credit Accounts payable, if input to this year, the expense amount will be larger.

[novica]

@kinland

Thanks for your reply. But this adjustments belongs to prior year, it’s better to input to prior year’s ledger. For example, Debit expense item & Credit Accounts payable, if input to this year, the expense amount will be larger.

Yes, you are going to input them with appropriate dates to have them in the previous year. The set period setting has nothing to do with that.

For more see this older topic: Regarding closing an accounting period - #4 by novica

[kinland]

@novica

Yes, you are going to input them with appropriate dates to have them in the previous year. The set period setting has nothing to do with that.

Thanks for your reply.

[Tut]

Read this Guide: Manager Cloud.

The accounts in Manager are perpetual. The only thing Set Period does is change the range of transactions displayed on the Summary page. All transactions from prior accounting periods remain. In other words, there are not separate journals or ledgers for different periods, only different displays.

You can also generate a report for any period at any time. Actual reports are not stored, only the parameters used to define them. Every time you view a report, it is generated fresh, based on the parameters you have entered. So if you change an account with adjustments, it will show up in any report covering the date of the transaction.