Closing a financial period is an accounting process carried out at the end of each period to evaluate financial performance and determine profits or losses. This article explains everything about managing financial periods in Rewaa.
Create a New Financial Period
Go to Settings > Finance.
Click the arrow next to Fiscal Year.
Enter the following details:
Start Date (⚠️ cannot be changed after saving).
Period: 1 month, 3 months, 6 months, or 1 year (the end date will appear automatically).
Notes (optional).
Click Save.
Manage Financial Periods
Edit the Period Duration
Click the 🖊 icon.
Update the Period (the end date will update automatically).
Update the Notes (if any).
Click Save.
Close the Financial Period
From the filter column, click the three dots > Close.
Click Preparing for the next period.
Enter the following details:
Start Date (⚠️ cannot be changed after saving).
Period Duration: 1 month, 3 months, 6 months, or 1 year.
Transferring Expenses and Revenues
To view details of the expense or revenue accounts, click the arrow next to the account.
Notes (optional).
Click Save.
ℹ️ Note: After closing a financial period:
You cannot perform any transactions dated within the closed period (such as adding or editing an expense or stock count).
The system automatically generates a closing journal entry for the closed period. You can review it in Accounting > Journal Entries.
Reopen a Closed Period
From the filter column, click the three dots > Open.
Click Open the previous fiscal period.
The status will change to Open, allowing you to make edits and then close it again.
FAQs
1. Can I close a financial period without installing the Accounting App?
Yes. However, you won’t be able to transfer profits or losses to the equity account.
2. How can I check whether a financial period is open or closed?
From the Financial Periods Table, click the filter icon and select the status (Closed or Open).