After the end of year run, SFM provides the option to authorised users to keep on posting into the Previous Year for the next 12 months.
When users post in the previous year, SFM will trap this and makes available a function, 'Update Opening Entries'. This function is available from the previous year menu. Users need to run this function to update the opening entries in the current year.
During this update, the system will perform the following processes:
- Check each closing Balance Sheet account and update the balance in the opening journal of the current year.
- Sums up all the Previous Year Profit & Loss accounts and update the net balance in the Profit & Loss Account (Year).
- System will clear any accounting in the opening entry journal with a zero value.
- Adds any Balance Sheet accounts that now have a value.
- Identifies all new transactions of the sales and purchase ledger and append them to the archive ledgers to maintain a full transaction history.
This function does not require all users to be out of the system. Users can also run this function, as many times as required. Please be aware that the current year opening balances may not be correct until this function is processed. For example, if users post an entry in the previous year affecting the bank, the opening balances of the current year will not be correct. Running this process will update these balances.
On accessing SFM, the system will issue a warning if it is required to run the Update Opening Entries function.
To run the update of the opening entries you will require the following security functions ADMINACC and PREVYEAR.