| Introduction for the End of Period & F/Y Closing |
The closing of the final period of a fiscal year serves to close the fiscal year itself and to reset the current balance entries. All of the Income Statement Accounts will zero out and post into the Retained Earnings Account.
You do not have to close the fiscal period or fiscal year on the last day of that period. We do not recommend keeping the periods open for months, but it is okay to spend some time (couple weeks) to go review your accounts/numbers before closing. Production does not need to stop in order for you to close the prior period/fiscal year. In Manex system, even if the prior period is still open anything production does their transaction is time stamped for the fiscal period the transaction happened in. Example; I have not yet closed fiscal period 3 (March 1st- March 31st) but today's date is April 16th so any transactions done will be in Fiscal Period 4
Again you can see my current period open is Period 3 but I have transactions done in April so they will be posted to Fiscal Period 4 when released and posted. Production can continue to work even if accounting is reviewing prior periods.
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