When moving between accounting periods, you need to complete several steps so that the closing account balances are carried over correctly into the new period and your accounting continues without discrepancies.
Initializing the new accounting period
In every accounting period that contains documents, you need to run Initialize the next accounting period from the Accounting menu.
This step works as a small "year-end closing" – the closing balances of balance sheet accounts are carried over as opening balances into the next period.
After the 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 relevant only in the last accounting year that you are closing. Even in that year, however, you must run the initialization, because it generates the revaluation of receivables and payables.
Balance of account 431
If the balance of account 431 is non-zero, you need to reclassify the balance to account 428 or 429.
At the time of initialization, the balance of account 431 should be CZK 0.
Posting closing balances using internal documents
In the next step, we will add the balances of the remaining accounts using internal documents. The accounts for receivables, payables, bank, cash, and advances have already been set up correctly in the previous steps.
That leaves the other accounts to be added.
For better clarity, we will create four internal documents:
Assets – on the Accounting tab and in the VAT row, enter the clearing account for the "base Credit" value.
Liabilities – on the Accounting tab and in the VAT row, enter the clearing account for the "base Debit" value.
Revenues – on the Accounting tab and in the VAT row, enter the clearing account for the "base Debit" value.
Expenses – on the Accounting tab and in the VAT row, enter the clearing account for the "base Credit" value.
In these documents, enter all accounts that have not been used so far. It is a good idea to add a description to each account, which will make it easier to find your way around later.
Revaluation of unpaid payables and receivables
If you have performed the revaluation of unpaid foreign-currency documents as of the last day of the period, it means the unpaid documents were entered with their original exchange rates.
You can enter unpaid payables and receivables with the exchange rate as of the last day of the accounting period – no exchange rate differences will be created.