DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

Closing the Financial Year & Reset Invoice Number


#1

I like the Manager Software and start using it instead of other software which I use it before, because of many things, one of the most is because of your presence behind and your frequent updates to keep it one of the best in the market as well because of it’s simplicity, coverage and reporting …

My first question is to know how I can close the financial year. Meaning having new Invoice numbering system without affecting the old invoice numbering system, knowing that I have to change the Invoice Template from “201400 " to 201500” .

But when changing the numbering sequence in the Invoice template all the old Invoices number change as well.!!

Second question: How I can change the Invoice number in the Template and start automatic numbering starting from (i.e 2015001 ) ? What’s happening now is having 2015024. which is the last invoice number instead of having a new year invoice number 2015001 ?

Thank you and best regards


#2

You can read more about closing the financial year at http://www.manager.io/guides/miscellaneous/closing-accounting-periods/

Invoice number prefix feature is going to be replaced for something that makes a bit more sense. If you are using prefix feature to add “year” in front. Don’t use this feature at all. Go to each invoice in 2014 and add “2014” prefix manually to each reference number.

Now when you go to create the first invoice in 2015, Manager will give you reference “2014024”, change this to “2015001” and save the invoice with this reference. The next time you go and create another invoice, the next reference number will be “2015002”


#3

I get your points. Well understood.

But I have a small issue because I already close the date for 2014, so I have no option to change the Invoice number.

Is there a possibility to disable the “Lock Date” to enable me changing the Invoice numbers in 2014?


#4

Just change the lock date to some earlier date (like 2013). Update your invoice numbers for 2014 and once done, go back to lock date to lock your 2014 year.


#5

The link given above in Lubos’ reply ( http://www.manager.io/guides/miscellaneous/closing-accounting-periods ) appears to be broken. Can you please provide a fresh link to this?
Thanks,
John


#6

I just tried the link and it worked. However, that page is left over from previous documentation, most of which has been replaced by revised versions of the Guides.

What exactly are you trying to do? Manager doesn’t require closing of income and expense accounts as you might have learned in studying accounting. Just adjust the dates for the display. To adjust the Summary, click on the Set Period button at the top. To adjust reports, edit the individual report or choose the date range when creating a new report. If you are trying to do something else, please explain.


#7

If you change the reporting dates to the new financial year the profit figure shown in equity in P&L is wrong as it shows the current year earnings as the total from last year instead of moving that into retained earnings (or at least it does for me). Do I need to do a journal entry to move that or is it a bug?


#8

From an accounting perspective, retained earnings is a phrase most frequently used only for corporations. Partnerships generally incorporate the concept into capital accounts. Proprietorships generally speak of owner’s equity. But they are all different ways of handling equity, that is, the investment of owners remaining in the company. In simplest form, retained earnings is the net of all contributions less dividends or draws. During a financial period, it can also include current profit or loss.

Retained earnings is a perpetual account, so if you never take money out of the company it will hopefully just get endlessly bigger. It is a balance sheet account. Thus, it represents one aspect of the company’s position.

Net operating and gross income, on the other hand, are income statement accounts. Classically, they are zeroed out at the end of every major reporting period (usually the fiscal year). So, they reflect current performance. In Manager, you don’t actually need to zero them out. You just reset the display period, which preserves all the information but has the same effect and is much less work.

Does that answer your question?


#9

Why not lock the dates ie ending the financial year and create a new business in manager calling it (business name - 30-6-14 to 1-7-15 this is what ive done…works for me just shows the new financial year easier.


#10

If you create a new business, the asset, liability, and equity accounts don’t carry forward. You’d have to recreate them all, set opening balances, etc. Then, when you’re in this year’s “business”, you wouldn’t be able to look up any transaction in last year’s “business.” Unpaid invoices wouldn’t carry forward, etc. That seems terribly complex and is entirely unnecessary.


#11

Hi Tut,

Sorry I did mean the figure in the Balance Sheet.

I have just put a journal entry in for the first day of the new financial year that debits Current Year Earnings for the profit for last year and credits it to Retained Earnings (70%) and Provision for Company Tax (30%) (liability) so that the balance sheet this year now shows the correct Current Year Earnings figure that matches the P&L. My business is a company so I need to track the retained earnings separately to current year earnings.


#12

I dont have any unpaid invoices i made sure they were paid in full before the end of the financial year


#13

@Edward_Sinclair, I still don’t think creating a new “business” for the new reporting year is a good idea. No accountant I know would recommend this. Perhaps you were lucky this year. But what about next year, when a customer is late paying an invoice?