How do I update the opening balances after posting in the previous year?

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:

1. Check each closing Balance Sheet account and update the balance in the opening journal of the current year.
2. Sums up all the Previous Year Profit & Loss accounts and update the net balance in the Profit & Loss Account (Year).
3. System will clear any accounting in the opening entry journal with a zero value.
   
4. Adds any Balance Sheet accounts that now have a value.
   
5. 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.

Required Permissions

To run the update of the opening entries you will require the following security functions ADMINACC and PREVYEAR.

• Related Articles

• How do I process an End Of Year in SFM?

  Overview SFM allows posting into two financial years simultaneously. This means that users do not need to finalise 2021 before starting to post entries into 2022. The end of year procedure will move the “Current Year” data into the "Previous Year". ...

• How do I finalise the previous year?

  Overview SFM allows posting into two financial years simultaneously. This means that users have the option to finalise 2019 (during the year 2020) and at the same time keep on posting in 2020. The Finalise Previous Year procedure will close the ...

• How do I post an invoice credit note in the previous year?

  A user can post sales transactions in the previous year by going to Previous Year Menu > Purchases > Postings. Every time a transaction is posted in the previous year, the Update Opening Entries option under the Previous Year menu is enabled, and the ...

• Do I need to Process an End-of-Year in SIMS?

  SIMS does not require an end of year procedures to be run.   However, SIMS controls users to only allow posting of transactions, such as sales invoices, cash sales, adjustments and purchases, within a range of dates referred to as the Posting Period. ...

• Allocating unallocated entries before running the End Of Year

  After running the end of year in SFM, all outstanding entries including unallocated entries are brought forward to the new financial year. To minimise the number of these outstanding entries we suggest that one goes through all the entities that have ...