The start of a new calendar year also marks the start of a new fiscal year for many businesses, so we felt this was the perfect time to remind you about the importance of closing your accounting periods.
Accounting periods in ServMan can be locked or closed to block transactions from being posted to the period. But it is important to remember that there is no financial validation when locking a period so you must be sure to Close the accounting period once you have finalized the accounting reconciliation for that month.
Also, when you close the last period of your fiscal year, ServMan automatically performs the necessary year end calculations and posting. There are no special year end closing processes to run.
It is also important to note that ServMan will allow you to process in 2 fiscal years, which are intended to be your current fiscal year and your next fiscal year. If you have not closed your accounting periods and try to post beyond the defined accounting periods you will receive a notice similar to this:
If you receive this notice then please review your accounting periods to ensure that you have closed your prior year completely. You can see your current accounting period (determined as the period after the last period closed) by looking at the bottom of the ServMan window:
In this example the user would need to close 2015 to ensure that the “Current Year” is 2016 (to allow completion of your accounting close for 2016) and “Next Year” should be 2017. The accounting periods should look like this for this example:
To Close the accounting period, follow these steps:
- Review the ServMan Help article for Month End Closing
- Close all open windows in ServMan. If you run reports externally, close the external reports module
- Select Utilities > Close accounting period(s)
- Select the new period
- Click OK
- Click OK