Projects:SectionFinancial Management(Openbravo Admin)

1. Here you are my feedback in relation to the section "Managing Accounting Periods" of this article Period End Close to Financial Report - Execution:

Please do not detail application paths such as: Financial Management // Accounting // Setup...etc, but just copy/paste the link to the window which is being mentioned, for instance: Fiscal Calendar. That's enough.

--Psanjuan 12:27, 21 August 2012 (UTC)

--- Galderromo 15:17, 28 August 2012 (UTC) OK, this is the way suggested on Documentation guide

Sentence below is not 100% right:
"Every company has a Fiscal Calendar since "it" is created "in" (at) Openbravo."

Only those organization which are "Legal with Accounting" Organization Type, for which "Allow Period Control" has been configured, require a Fiscal Calendar.

--Psanjuan 12:27, 21 August 2012 (UTC)

--- Galderromo 15:17, 28 August 2012 (UTC) I agree. Fixed.

Please make clear that in the window Fiscal Calendar it is possible to create the "Years", for instance 2012, 2013, 2014 and so on so forth, when an organization is making business. Those years need to be split into periods. For Openbravo those periods are the months of each year; therefore there is a process which helps on creating the periods of a given year. In other words, that process creates the 12 months of a year, starting from January 1st to December 31st.

There are companies which like to have a different period structure, for instance from July 1st to June 30th of the following year. If that is the case those process needs to be created manually as described here.

--Psanjuan 12:32, 21 August 2012 (UTC)

--- Galderromo 15:17, 28 August 2012 (UTC) I agree. Fixed.

• • Opening/closing periods: Previously created periods can be managed in the Open/Close period control window.

I will change that for: The periods of a year are opened and/or closed in the Open/Close Period Control window.

The sentece below is already explained there so I will remove it.

"Periods can be closed/opened until a given period. It is also possible to select all document types at once or just a given document type such as AP Invoice, for instance. If a period is closed for a document type. that means it will not be possible to post a document of that type within that period."

--Psanjuan 14:40, 21 August 2012 (UTC)

--- Galderromo 15:17, 28 August 2012 (UTC) Fixed.

What I would explained here is what is exactly the process to open or close a given period or set of periods as it is not really well explained. Can you do that?

I mean, I would say:

"The way to open a period is to create a new record in the Fiscal Calendar window, then select a year, select the action to execute, for instance "Open Period", and finally enter the period until when it is required to open a period/s in the field "Until Period". Once done, press the process button "Open/Close All", that button performs the action therefore Openbravo informs that the process has been completed succesfully.

Above can be completed by explaining the field "Document Category".

--Psanjuan 14:40, 21 August 2012 (UTC)

--- Galderromo 15:17, 28 August 2012 (UTC) Fixed.

New Feedback: I asked you to put this information in the Open/Close Period Control window not in this article. I've moved the explanation there. Done.

--Psanjuan 13:46, 30 August 2012 (UTC)

2. Here you are my feedback in relation to the section "The Finance Team is also in charge of closing the accounting year" of this article Period End Close to Financial Report - Execution:

I provided some accounting documentation which describes what are usually the task to execute while closing a year. Those are:

• check if there are accounting transactions pending to be posted (you already mentioned that).
• check if there are any possible mistakes, for instance a sales invoice pending to be issued or a customer payment pending to be collected. The way to do that is to review in the Sales Invoice window if there is any sales invoice dated on the year to close, pending to be completed and therefore pending to be booked, same applies to customer payment, those can be reviewed in the Payment In window.
• Long term amounts must be reclasified to short term amounts. The long term amount reclasified to short term amount is the amount due in the next year. This process is usually done for long term doubts for instance. In Openbravo this kind of transactions can be manually created by using a GL Journal
• Taxes such as the VAT needs to be settled periodically. The How to Manage VAT settlement and payment article explain how to do that in Openbravo. It is important to remark that VAT accounts balance has to be equal to 0 in the last period of the year, as either the organization has to pay to the tax authorities or the other way around.
• Check Financial Accounts current balance in Openbravo and compare it with the information provided by the banks. It is possible to adjust financial account balance by using GL Items or to transfer funds between financial accounts

Please change that section accordingly.

--- Galderromo 19:20, 28 August 2012 (UTC) Done.

There are few sentece I do not understand, please find them below:

• If automatic accounting process is used on the instance, make sure the accounting background process is stopped.
  • (What do you mean by this? What is the context here?)

--- Galderromo 20:08, 28 August 2012 (UTC) This just means to disable accounting background process in order to have a frozen accounting information.

• Check Balance Sheet is correct previous to begin the process. Financial Management > Accounting > Analysis tools > Balance Sheet and P&L structure. If any is not correct, solve it first.
  • (What do you mean by correct? Openbravo should not and in fact does not create incorrect balance sheet...)

--- Galderromo 20:08, 28 August 2012 (UTC) Of course Openbravo does not create incorrect balance sheets, but the user can include undesired information. For example, if you use account 551 (551. Cuenta corriente con empresas del grupo.) to reflect a money lending but you select (551) instead of selecting 551, the balance sheet will show wrong information. Therefore, the balance sheet won't be correct.

• Make sure there is no accounting records posted on suspense accounts. Suspense accounts are defined for each implementation at Accounting Schema window. Find them on Financial Management > Accounting > Setup > Accounting Schema > General Ledger. Realize there are three suspense accounts: suspense balancing, suspense error and suspense currency balance. If any records are found on this defined accounts, solve them first. To solve them, it is necessary to check why the error occurred and fixed one by one.
  • (I think it is important to mention this. I would say that: "Suspense Accounts are defined for each accounting schema in the General Ledger tab of the Accounting Schema window. There are three suspense accounts:
    • Suspense Balancing, this account is used in those cases where an accounting entry can not be balanced while being posted. If there is no account in this field Openbravo will show an error.
    • Suspense Error, this account is used in those cases where an exception or error happens preventing an accounting entry to be posted. If there is no account in this field Openbravo will shown an error.
    • Currency Balance, this account is used in those cases where there are currency rounding differences while posting a transaction. For instance, it could happen that the total invoice exchanged into a given currency do not 100% match to the sum of each invoice line exchanged into the same currency.

--- Galderromo 20:08, 28 August 2012 (UTC) Done.

• When closing a Fiscal Year, different accounting plans usually recommend not to use period’s last date to post documents. Further more, Openbravo uses period’s last date for closing transactions.
  • (here we are saying that accounting plans do not recommed to do something Openbravo is in fact doing. I guess you would agree with me that this part needs to be better explained. The fact is that right now it is not possible to create a period just for closing purpose, therefore what Openbravo does is to post closing entries the last day of the year and opening entries the first day of the next year. I do not why accounting plans do not recommend to use those dates.)

--- Galderromo 20:08, 28 August 2012 (UTC) This is what I want to explain. I do not know to much abount Spanish COA and Cuban COA, but if I am not wrong both reserve first and last day of the year for closing and opening operations. Anyway, I have changed.

• Make sure again Balance Sheet shows logical information both for this year and for next year.
  • (Why a balance sheet could not show logical information??. Please explain this better).

--- Galderromo 20:08, 28 August 2012 (UTC)I understand your point, the sentence can be understood on the negative meaning. Anyway, I have clarified remembering Openbravo's flexibility and adaptability is based on a very configurable model. This configurability gives the user the freedom of changing every accounts configuration but this also can introduce misconfigurations. This is the reason why it is important to check the result.

I would remove below senteces as that is already clear:

• Fiscal year usually is from January 1st until December 31st. But every company can choose its own Fiscal year. It is possible to check how Fiscal year is set on Fiscal Calendar window at Financial Management > Accounting > Setup > Fiscal calendar.

--- Galderromo 19:20, 28 August 2012 (UTC) Done.

--Psanjuan 13:56, 21 August 2012 (UTC)

New Feedback related to paragraphas below:

• Closing the Year:
  • ”Close Year” process is executed in the Fiscal Calendar window. This process creates the closing transactions of the year and the opening transactions of the following year. If the company has different organizations, it is mandatory to select one. (What do you mean by this?)

Each organization has one an only one fiscal calendar, therefore once in the Fiscal Calendar window, once an organization has been selected, a fiscal calendar is selected and then the year can be closed.

--Psanjuan 15:31, 30 August 2012 (UTC)

• Check the Result:
  • All accounting reports on Financial Management > Accounting > Analysis Tools will now show information related to the closing transaction.
    • Make sure again that the Balance Sheet shows the expected information both for this year and for the next year. Been Openbravo so flexible and configurable is excelente but the user can also include some undesired misconfiguration. Therefore, it is important to check the final result.

I would remove this part:

Been Openbravo so flexible and configurable is excelente but the user can also include some undesired misconfiguration. Therefore, it is important to check the final result.

--Psanjuan 15:33, 30 August 2012 (UTC)