Fiscal or calendar year

Fiscal years and calendar years are defined for each entity in Q360. You can also create each year or several subsequent years in advance, as needed for your organization.

You should always verify that the Fiscal periods are correctly setup for an upcoming Fiscal Year by going to Accounting>Admin>GL Admin>Fiscal Calendar. This SHOULD BE COMPLETED PRIOR TO THE START OF EVERY FISCAL YEAR to avoid posting issues.

Journal types

Q360 maintains 3 concurrent journals where postings occur:

• AR: Postings related to customer invoices and income
• AP: Postings related to vendor invoices and expenses
• GL: All other postings, including inventory and manual entries

Closing a period or fiscal year

Closing an accounting period is done when monthly procedures, reconciliations, financial analysis, adjustments, financial statements, and reports are completed. For more information on this topic see the Month-End Closing document.

For a given period, accounts receivable, accounts payable, and general can be closed individually or all at once while you are completing your month end requirements. This prevents any further postings to these journals. You can re-open a journal in a specific period to make further adjustments or corrections if needed.

Closing a fiscal or calendar year is followed by the usual month-end closing requirements for accounting processes and procedures. The fiscal or calendar year-end closure is not done immediately after the last period is closed. It requires more accounting attention for necessary year-end adjustments and your auditors or CPA’s approval on the final presentation of your financial statements. While this is a longer process to complete, ensure your subsequent accounting periods for the new year are opened to enable users to carry on with the current year’s work.

As with most automated accounting systems, when the year is closed, the net profit and loss is posted to the retained earnings account. This process creates a zero-opening balance for all profit and loss accounts on the first day of the first period in the new fiscal year. After this process is confirmed and completed, you cannot reopen the prior year or any prior periods.