Period Closing Voucher in VinAR-ERP
A Period Closing Voucher is used to finalize your accounting records at the end of a financial period, ensuring that income and expense accounts reset to zero, and profit or loss is carried forward. This process is essential for maintaining clean financial records and preparing for a new fiscal year, quarter, or month.
Why Use a Period Closing Voucher?
📌 Ensures accurate financial statements before starting a new period.
📌 Transfers net profit or loss to a designated account.
📌 Resets income and expense accounts to zero for a fresh start.
When to Close Your Books?
✅ End of a fiscal year (e.g., December 31st).
✅ Quarterly or monthly, depending on your business needs.
✅ After completing all necessary financial adjustments, such as:
- Depreciation (reducing asset value).
- Adjustments for bad debts.
- Deferred taxes and liabilities.
How to Create a Period Closing Voucher
1. Access the Tool
2. Enter Key Details
🔹 Posting Date – The date when the closing entry will take effect.
🔹 Closing Fiscal Year – The financial year being closed.
🔹 Closing Account – Typically Reserves and Surplus or Owner’s Capital.
🔹 Remarks – Any additional notes or references.
What Happens After Submission?
🚀 All Income and Expense accounts reset to zero – allowing for a fresh start in the new period.
🚀 Profit or Loss is transferred – to the designated closing account.
🚀 Cost Center-Based Closing (Optional) – If enabled, profit/loss is booked according to each cost center’s transactions.
Example of Closing Entries
If you have two sales transactions from different cost centers, the closing voucher will allocate the profit/loss separately for each cost center.
Final Thoughts
By using the Period Closing Voucher in VinAR-ERP, you can ensure your books are properly closed, profits are accounted for, and your business is financially prepared for the next cycle. It’s an essential step for organized and accurate financial reporting! ✅