When transitioning between accounting periods, several steps must be completed to correctly carry forward the closing account balances into the new period and ensure continuity in the accounting records without any discrepancies.
Initializing a New Accounting Period
For each accounting period in which documents have been entered, you must run the Initialize Next Accounting Period function from the Accounting menu.
This step acts as a mini "accounting close" — the closing balances of balance sheet accounts are transferred as opening balances into the following period.
After initialization, the following message may appear:
"Account 431001 does not have a zero balance. Do you want to continue with the closing?"
In this case, select "Yes". This warning is only relevant for the last fiscal year being closed. However, even in that case, initialization must be run, as it generates the revaluation of receivables and payables.
Account 431 Balance
If account 431 has a non-zero balance, the remaining balance must be reclassified to account 428 or 429.
At the time of initialization, account 431 should have a balance of CZK 0.
Entering Closing Balances via Internal Documents
In the next step, enter the balances of the remaining accounts using internal documents. Receivable, payable, bank, cash, and advance accounts have already been set up correctly in the previous steps.
The remaining accounts still need to be filled in.
For better clarity, create four internal documents:
Assets – on the Posting tab and the VAT line, enter the bridging account for the "base Credit" value.
Liabilities – on the Posting tab and the VAT line, enter the bridging account for the "base Debit" value.
Revenue – on the Posting tab and the VAT line, enter the bridging account for the "base Debit" value.
Expenses – on the Posting tab and the VAT line, enter the bridging account for the "base Credit" value.
Enter all accounts not yet used into these documents. It is recommended to add a description to each account to make navigation easier later on.
Revaluation of Outstanding Payables and Receivables
If a revaluation of outstanding foreign-currency documents as of the last day of the period was performed, it means that the outstanding documents were entered using the original exchange rates.
It is possible to enter outstanding payables and receivables using the exchange rate applicable on the last day of the accounting period — in this case, no exchange rate differences will be generated.