Closing Financial Periods

Document Version	v.2
Document Last Updated	9/23/23
Software Version Documented	v.9.9.2

Overview

This document will discuss the financial closing period process that can be leveraged in Savance Enterprise. Closing financial periods are optional. It will keep financial statements more accurate but will decrease the flexibility of the software.

Closing a Period

Internal Closing Activities

Prior to closing the period in the software, execute any of the internal tasks required to close a given financial period. Things to consider include but aren’t limited to:

Enter any final bills received
Invoice any orders eligible for invoicing
Making journal entries for payroll, accrued expenses, amortization, depreciation etc.
Reconciling bank accounts

Reconciling Reports Against Subsidiary Ledger Accounts

Once all transactions have been entered into the business system, bank accounts are reconciled and journal entries completed, you are now ready to compare key ledger accounts to the reports run in Savance Enterprise. Use the table below to help you with this exercise.

Ledger Account/Financial Statement	Corresponding Report	Filter Criteria Notes
Accounts Payable	AP Aging Summary/Detail	Last day of closing period
Accounts Receivable	AR Aging Summary/Detail	Last day of the closing period. Include cash accounts and don’t exclude any dollar values.
Inventory	Inventory Valuation Summary/Detail	Last day of closing period
Potential Purchase Liability	Potential Purchase Liability	Last day of closing period
Sales Income	Invoicing and Crediting Summary Report by Account	Date range of closed period
Sales Tax	Sales Tax Summary/Detail	Date range of closed period
Balance Sheet	Balance Sheet	Last day of closing period
Income Statement	Profit & Loss	Current Fiscal Year Start to Last day of the closing period

Closing the Financial Period

You can close a given period at whatever interval makes sense for your organization. Once a period is closed, nothing can occur that will impact the ledgers in that closed period. Any transaction that would normally impact a ledger in a closed period will be blocked. On the other hand, there are types of transactions that will happen in the current period, for example, writing off freight on an invoice from a closed period. In this case, the original invoice will remain untouched and write off expenses or some other ledger account will be debited in the current period.

Accounting -> Accounting Manager -> Period Closing
Choose a period end date and commit close
You can also reopen a period if you have the correct security rights. If you do, all subsequent entries will be reopened as well and all reopened periods will be struck through.
If you reopen a period, you have to reopen all the closed periods after it and close all periods again after any changes are made.

Transaction Types Blocked After Closing Period

The following actions will be blocked from happening in a closed period. They include but are not limited to:

Un-invoicing
Canceling shipper/order
Adding, deleting or editing Journal Entries
Backdating invoices, bills into a closed period
Editing/Voiding a payment in a closed period
Editing/Voiding vendor payments in a closed period
Voiding a bank deposit from a closed period
Unreconciling a reconciliation that happened in a closed period and this reconciliation had a service charge and/or an earned Interest
Bank Transfer into a closed period
Receiving Payments into a closed period
Making Payments into a closed period
Moving ledger transactions that happened in a closed period between two ledger accounts
Changing initial balances that happened in a closed period