• Tek Siong, Hock

Odoo CE Accounting - Fiscal Year Closing

Updated: Apr 7

What is Fiscal Year?

Fiscal Year is referring to a 12 months period of the accounting year. In Malaysia, fiscal year may not always be from 1st Jan to 31st Dec, and most companies may opt to have a different fiscal year.

At the end of fiscal year, the company has to submit the financial documents for Accounting Auditing and Tax Audit.

What is the purpose of Fiscal Year Closing?

Upon the accounting records being audited by the Auditor, which could be about 3 to 9 months after the end of the fiscal year, all the audited financial records cannot be amended anymore.

Therefore, in a typical accounting system, accounting user would like to do a Fiscal Year Closing, with a opening entry.

a) Bring forward Asset, Liability and Equity account balances;

b) Move the Undistributed Profit/Loss (999999) from previous fiscal year to the new fiscal year retained earning account.

c) Lock the previos fiscal year data

Odoo Official Suggested Checklist of Transactions to be completed

  1. Invoice, Vendor bill and Expenses must be recorded and validated.

  2. Reconciled all the Bank statements in the period.

  3. Transfer of Suspense Account to the actual Account.

  4. Posted the Depreciation, Loan and Tax adjustment.

  5. Make sure all the Deferred revenue are posted.

  6. Make sure all the Accrued Revenue and Expenses are posted.

How to do Fiscal Year Closing in Odoo CE?

The steps are as follow:

  1. Close the fiscal year.

  2. Update the fiscal year and period to all the invoices and vendor bills.

  3. Create a new Opening balances journal entries and DR the Undistributed Profit/Loss (999999) from previous fiscal year and CR the new fiscal year retained earning account.

  4. Lock the transactions and no more update or changes to the closed year's transaction.

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