Make closing financial periods even easier in SAP Business One and prevent mistakes of posting to the wrong period by enabling automatically closing.
Did you know that prior to the year 2002 the tax year in Ireland ran from April 6th to April 5th each year? It still does in the UK, with the reasons for this unusual tax year dating back to the Middle Ages. It was only from January 1st 2002 that it changed in Ireland to run from January 1st to December 31st to bring it in line with the calendar year.
While many companies now choose December 31st as their financial year-end to coincide with the tax and calendar year, many that existed pre-2002 still align it closer to the old tax year. This can also be the choice if a business has operations in both Ireland and the UK.
With this historical year-end period in mind, we thought we’d share a tip with you on how to make closings of any of your upcoming financial period-ends that little bit easier. This can be done by setting financial periods to close automatically. This can be done for all financial period types, including monthly, yearly, or whatever you define.
How to close financial periods automatically in SAP Business One
As not everyone in an organisation will always be thinking about the importance of posting to the correct period, you can prevent users posting documents or transactions when a period ends by setting its status to ‘Closing Period’. However, someone may not always be available to set this manually, or it could be missed in a hectic workplace.
This is why there is the option in SAP Business One to automatically change the status of periods to “Closing Period” per your criteria:
All you have to do is select the checkbox and set how many days after the period end-date the ‘Closing Period’ status should be applied for. If for example you set this to 4 days, then users can still add documents and transactions to the previous period during the first 4 days of the new period.
By doing this, you can streamline your period-end closing processes so that you can focus on growing your business.
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SAP Business One is recognised for its ability to streamline business processes and workflows, and offers users incomparable flexibility such as with its period-end closing options.
At Teamsoft, we have been supporting businesses for almost 30 years, so we have experience in every scenario your company has to deal with, no matter what your tax year-end is or across what tax jurisdictions. From optimising business processes to compliance and reporting, we know how to make your SAP Business One ERP work as it should.
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