New Fiscal Year Queries in Accounting and Stock Openeing

ERPNext Accounting
1

Hello,
We are about to move to the new Fiscal Year. Here are few questions, as we are doing this for the first time.

  1. I see that stock numbers carry forward to new Fiscal Year automaticallly. As i am able to create sales invoices in new Fiscal Yr. I was thinking we need to reset them all to 0. And then create a new stock reconciliation with Temporary Account as given in https://erpnext.org/docs/user/manual/en/stock/opening-stock . But seems i dont have to do it, may be i need to do it only when i am moving from Tally to ERPNext for the first time. The stock get carrier over to new Fiscal Year. Pls confirm.

  2. Though the stock numbers are present in new Fiscal year, the value in Stock In Hand AH is 0, and does not reflect the total stock value. I am assuming i need to add this using the opening entry , along with other Account Heads. https://erpnext.org/docs/user/manual/en/accounts/opening-accounts. Pls confirm

  3. Since we will not know what our opening balances will be, for another 2 weeks (due to some functional issues), even after the start of new Fiscal year. Can we start doing sales invoices, and purchase invoices, stock moments etc. And couple of weeks later, do a Opening entry for acount heads ? Will it get automatically adjusted. Or will it create problems

  4. Similar to how stock numbers are moving to new fiscal year. Do any of the account head balances also move to new Fiscal year. Or do i have to take care of each and every Account head in the opening entry.

Pls let me know.

2

  1. This is correct as per the standard accounting practise. If you want to do any correction in the posting of new stock, then you can create new Stock Reconcialiation or for Item. Or else, you can consider creating new Company itself (not recommended though).

  2. Have you created Period Closing Voucher (PCV)? If no, check after creating PCV.

  3. Yes, start making entries. No issues.

  4. Balance of all the Asset and Liability Accounts are moved to new year. This is not the case in the P&L accounts.

1 Like
3

Thanks @umair for the detailed clarifications. Appreciate your help.
We will follow your suggestions.