Tag Archives: Financial Period

Why can’t I open a new period?

MoneyWorks allows the user to open up to 90 opened financial periods. Once the maximum number of periods has reached, the user has to close some of the older periods to open up a new period.

For those users who have started using MoneyWork in May or June 2014, you may have already reached a maximum number of open periods. You cannot open a new period unless you close some of the older periods. The New button in the Open/Close period window is grey off and not allowed to click.

It’s time to close some periods.

Assuming you have started using MoneyWorks from June 2014 and wish to close some older periods until December 2014. First, print those reports as of December 2014 if you have not done so. Then, do a backup before proceeding in closing periods.

Note: 

  1. You should post any transaction in those periods you wish to close and reconcile the bank and finalise GST if you have not done so.
  2. For those bank account that you do not require to perform reconciliation (such as contra or transition bank account), you may consider unchecking the “Bank account must be reconciled” checkbox from the Bank setting tab of the account profile. These will ease the purging later if you wish to do so.
Close financial periods
Close financial periods

Steps:

  1. Go to the Command menu and select Open/Close period.
  2. Then, highlight the last period which you wish to close until (that is December 2014 in this case), and
  3. Click the “CLOSE” button to close the periods until December 2014.

That’s it. You can now proceed to open a new period.

The transactions are still in the MoneyWorks database even though the periods have been closed. You can still print the data using “By date-range reports”, such as Sales or Profit & Loss Report by Date Range.

The current version of the MoneyWorks accounting software is 9.0.5. Download a trial to test drive if you like to find out more or book a demo to see how to use MoneyWorks to manage your business finance.

Those users who are using MoneyWorks Now and require to access your MoneyWork company file while working from home can download the software from the Cognito website. Install it into your home computer (either macOS or Windows) and access it with the same MoneyWorks ID and password as you log in from the office. That’s the beauty of cloud-based computing; accessing your data anyplace, anytime.

Lock the period

Lock your valuables in safe.
Lock your sensitive document in the drawer.
Lock your house away from the unwanted visitor.
Lock your accounts to prevent data fall into the wrong period.

When to lock?

You lock the crossover period to prevent data wrongly entered or removed after you have migrated to MoneyWorks. Subsequently, you lock up the period after you have completed the:

  • bank reconciliation
  • finalised GST
  • stocktaking
  • month-end closing
  • year-end closing

Locking up the period is a necessity and responsibility of the accountant (administrator) to maintain data integrity and accountability.

You have to lock.

From the command menu, select open/close period. Then, highlight the period you wish to lock and hit the lock button to lock the financial period.

MoneyWorks Period Management

You may add period management as a month-end task. Manage the period after you have completed bank reconciliation or after the closing exchange rate has set for the month (If you are using multiple currencies for your business accounts).

You can unlock the locked period. 

From the period management window, highlight the locked period and hit the unlock button to reopen the financial period. Unlock when need to record adjusting entry or audit adjustment which will only receive several weeks or months after you have closed the book.

Close period

You can proceed to the ‘close’ period after you have completed the audit adjustment (Usually, I will close the period once every 2 to 3 years). Both locked and unlocked period are open period, which you can keep up to 99. The older period has to close when the maximum number of the opened period has reached. You can still view the transaction even when the period has ‘closed’.

Lock up is temporary, whereas close is permanent. Backup your business account before you close it.

Reference: MoneyWorks User Guide, The Period Management.

Managing the financial period

Software: MoneyWorks #accounting software

The year is broken into periods. You normally have 12 periods in your financial year, each one corresponding to a calendar month. However MoneyWorks lets you have anywhere from two to fifteen periods.
— MoneyWorks version 7 User Guide page 10, Period.

A Financial Year normally has 12 financial periods and each period corresponds to a calendar month. During the setting up of the company file, you may consider having an additional period, the period 13, for audit adjustment. Unlike the Calendar Year, the Financial Year may not start from January as it depends on the financial policy of the company and the country’s regulation, which your business has set up.

Assuming John has registered his business in April 2016, he will close his account by March 2017 if he wants to have 12 financial periods in his first year of business and yearly he will close his book as at 31 March. Now, if John prefers to close his account by December every year, then his financial year should start from January and ends in December.

MoneyWorks automatically open a new period for you if the administrator has given you the access right to “open new period”. However, to Lock, Close, and Purge period has to be done manually as the software is not able to determine when the account has completed.

Period Management

After you have completed the month-end or year-end account, you can temporarily lock the financial period to prevent unauthorised changes to the account by activating the “lock” period feature in the MoneyWorks accounting software.

The period, which is locked, has to unlock first before passing an audit adjustment. After the audit adjustment, you can use the “Close” financial period feature in MoneyWorks to permanently lock the account. Although MoneyWorks allows you to keep up to 90 financial periods open, most user will close the financial period after audit adjustment to prevent accidentally posted transaction into the past financial year.

The “Purge” feature in MoneyWorks allows the user to purge the transactions in the closed financial period. Although the transaction has purged, the account balance will be kept. After purging, use the “Save a Compacted Copy” feature to reduce the file size. Purging is optional. Unless you have a huge file of more than 3.5GB, if not, you can keep the historical transaction forever (Note: You should BACKUP before purging).

 
Reference: MoneyWorks v7 User Guide page 197, Period.