Closing finance book

This page allows you to close a selected finance book. Tell me more.

Select the “Close Finance Book” link under the “Financial Calendar Closure” business component.

The “Close Finance Book” page appears.

Enter the following fields:

Book Type	Use the drop-down list box to select the type of finance book that you want to close. “Main Finance Book”, “Posting Finance Book” or “Consolidation Finance Book” will be available for selection if finance books of the type have been defined for the company.
Finance Book	Use the drop-down list box to select the code identifying the finance book that is to be closed. All the finance books that have been mapped to the “Finance Book Processing” business component corresponding to this Financial Calendar Closure” business component and of the type selected in the “Book Type” field will be available for selection in the ascending order.
Closure Type	Use the drop-down list box to select the type of closure. You can select from “Provisional Closure”, “Final Closure” or “Closure for MAC” which are available in the ascending order.
	Closure for MAC – indicates that the financial year / period has been closed for the purpose of posting MAC incorporation entries. The finance book must be “Finally Closed” after posting the MAC entries, which is required for “Posting” finance books.
	Provisional Closure – indicates that the financial year / period has been closed for an interim time. The system arrives at the closing balances which can be used as the opening balances of the subsequent period / year. The finance book must be “Finally Closed” later. Posting of financial entries is possible in the finance book after the “Provisional Closure” based on the parameters set at the company level.
	Finally Closed – indicates that the financial year / period has been finally closed for the finance book. You cannot post any transaction for the closed financial year / period. There must also be financial year / period subsequent to the one that is closed so that the closing balances can be transferred.

Note: “Closure for MAC” will be available for selection only if the parameter “Period Closing Required for MAC” has been set to “Yes” at the company level.

if the “Book Type” is selected as “Main Finance Book” or “Consolidation Finance Book” then only “Final Closure” will be available for selection in this field.

Close Period / Year

Use the drop-down list box to select whether you want to close the financial period or the financial year. You can select from “Period” or “Year”.

Note: If “Year” is selected financial periods will not be available for selection in the “Financial Period From” and “To” fields.

Financial Year

Use the drop-down list box to select the financial year for which you want to close the selected finance book. All the finance years that are in the “Open” status will be available for selection in the chronological order. The system displays the start date and the end date of each of the financial years. The date range of the “Open” financial years must be before the system date.

Note: The last financial period of the selected financial year must be in the “Open” status if “Year” has been selected in the “Close Period / Year” field for “Final Closure”.

Financial Period From

Use the drop-down list box to select the financial period for which you want to close the selected finance book. All the financial periods that are in the “Open” status will be available for selection in the chronological order. All the financial periods till the current financial period will be available for selection in the chronological order. The system displays the start date and the end date of each of the financial periods.

Use the drop-down list box to select the financial period till which you want to close the selected finance book. All the financial periods that are in the “Open” status will be available for selection in the chronological order. All the financial periods till the current financial period will be available for selection in the chronological order. The system displays the start date and the end date of each of the financial periods.

If you want to close the finance book for multiple periods, you can specify the starting and ending of the range in the “Financial Period From” and “To” fields. The system will close all the financial periods that fall within this range.
Click the “Get” pushbutton to retrieve the financial year details.

The system displays the following in the “Financial Year Details” group box based on the financial year / period selected:

Financial Year Code	The code identifying the financial year.
Description	The textual description of the financial year.
Year Status	The status of the year. It could be “Open”, “Provisionally Closed” or “Closed for MAC”.

The system displays the following in the “Financial Period Details” multiline:

Financial Period Code	The code identifying the financial period.
Description	The textual description of the financial period.
Start Date	The date from which the financial period begins.
End Date	The date on which the financial period ends.
Period Status	The status of the financial period. It could be “Open”, ”Provisionally Closed”, “Closed for MAC” or “Closed”.

Note: The following prerequisites must be completed to close the selected finance book.

For Provisional Closure of a “Posting Finance Book”

If a financial year is being “Provisionally Closed” all the financial years before the selected year must be in the “Closed” status.
The financial year / period cannot be closed if unauthorized journal vouchers are available.
If closure is being done for the first time after migrating to the “Ramco iEnterprise 4.0” system, initial balance entry in the base currency must have been completed for the selected finance book. If a parallel base currency is applicable for the company, the initial balance entry must have been completed in the parallel base currency also.

For Final Closure of a “Posting Finance Book”

The financial year / period cannot be closed if unauthorized journal vouchers are available.
Inter finance book reconciliation must have been completed mandatorily for the closure of the financial year. Inter finance book reconciliation must be completed for the closure of the financial period if the “Inter Finance Book Reconciliation” parameter has been set as “Yes” at the company level.
Inter company finance book reconciliation must have been completed mandatorily for the closure of the financial year. Inter company finance book reconciliation must be completed for the closure of the financial period if the “Inter Company Finance Book Reconciliation” parameter has been set as “Yes” at the company level.
Currency revaluation must have been completed mandatorily for the closure of the financial year. Currency revaluation must be completed for the closure of the financial period if the “Currency Revaluation” parameter has been set as “Yes” at the company level.
All the preceding BFG closure must have been completed mandatorily for the closure of the financial year. All the preceding BFG closure must be completed for the closure of the financial period if the “BFG Closure” parameter has been set as “Yes” at the company level.
Bank Reconciliation must have been completed mandatorily for the closure of the financial year. Bank Reconciliation must be completed for the closure of the financial period if the “Bank Reconciliation” parameter has been set as “Yes” at the company level.
If closure is being done for the first time after migrating to the ““Ramco iEnterprise 4.0” system, initial balance entry in the base currency must have been completed for the selected finance book. If a parallel base currency is applicable for the company, the initial balance entry must have been completed in the parallel base currency also.

For Final Closure of a “Main Finance Book”

Consolidation of all the “Posting Finance Books” must have been completed.

For Final Closure of a “Consolidation Finance Book”

Consolidation of the “Main Finance Book” must have been completed.
Click the “Close” pushbutton to close the selected finance book.

On Provisional closure of a “Posting Finance Book”

The system calculates and saves the “Retained Earnings” temporarily as the difference of the “Total Revenue” and “Total Expenses”. “Total Revenue” is calculated as the difference of the debit and the credit balances of all the accounts that belong to the group “Revenue” and “Total Expenses” is calculated as the difference of the debit and credit balances of all the accounts that belong to the group “Expenses”. This retained earnings is also calculated and saved in the base currency and the parallel base currency of the company. Closure entries are not posted.
The status of the selected financial period is updated as “Provisionally Closed”.

On MAC closure of a “Posting Finance Book”

The system calculates and saves the “Retained Earnings” temporarily as the difference of the “Total Revenue” and “Total Expenses”. “Total Revenue” is calculated as the difference of the debit and the credit balances of all the accounts that belong to the group “Revenue” and “Total Expenses” is calculated as the difference of the debit and credit balances of all the accounts that belong to the group “Expenses”. This retained earnings is also calculated and saved in the base currency and the parallel base currency of the company. Closure entries are not posted.
The status of the selected financial period is updated as “Closed for MAC”

On Final closure of a “Posting Finance Book”

The system calculates and posts the “Retained Earnings” as the difference of the “Total Revenue” and “Total Expenses”. “Total Revenue” is calculated as the difference of the debit and the credit balances of all the accounts that belong to the group “Revenue” and “Total Expenses” is calculated as the difference of the debit and credit balances of all the accounts that belong to the group “Expenses”. This retained earnings is also calculated and posted in the base currency and the parallel base currency of the company.
The system generates a unique document number for the selected financial year in the selected finance book and also generates an accounting entry.
The system calculates and transfers the balances of the “Revenue” and “Expense” accounts to the “Retained Earnings” account with the narration “Closure Entry” for the selected financial year.
The status of the selected financial period is updated as “Closed”.
The closing balances in all the accounts will be transferred as the opening balances for the subsequent “Open” financial period.
The budget amount that has not been availed will be transferred to the subsequent “Open” financial period.

To proceed, carry out the following

Select the “BFG Closure Status” link at the bottom of the page to view the closure status of the business function group.
Select the “Pending Transaction” link at the bottom of the page to view the list of unauthorized transactions available in a finance book.
Select the “Period Closure Status” link at the bottom of the page to view the status of the financial periods.
Select the “Year Closure Status” link at the bottom of the page to view the status of the financial year.
Select the “Error Details” link at the bottom of the page to view the details of the errors that have occurred during the closure of the finance book.

Closing finance book – An overview

You can select the financial year and the financial period that you want to close. A finance book can be “provisionally closed”, “closed” or “closed for MAC” purposes. You can close a “Posting finance book”, “Main finance book” or a “Consolidation finance book”. The status of the financial year and the period is updated according to the type of closure selected. The system calculates the retained earnings, passes entry for the same and also transfers the closing account balance as the opening balance for the subsequent financial period or year.

What you can do in this page

Select type of finance book

Set calendar for closure

Set type of closure

Select type of finance book

You can select the type of the finance book that you want to close. The different types of the finance book will be available based on the type of finance books defined for the company. Typically, “Posting” and “Main” finance book will be available for selection. If the company has a defined “Consolidation” finance book, it will also be available for selection.

Set the “Book Type” field to “Consolidation Finance Book” if you want to select a consolidation finance book for closure.
Set the “Book Type” field to “Main Finance Book” if you want to select a main finance book for closure.
Set the “Book Type” field to “Posting Finance Book” if you want to select a posting finance book for closure.

Set calendar for closure

A calendar comprises of a financial year and the financial periods defined for it. You can select whether you want to close a financial year and a financial period.

Set the “Close Period / Year” field to “Period” if you want to close the financial period.
Set the “Close Period / Year” field to “Year” if you want to close the financial year.

Set type of closure

You can close the financial period and the year in different ways.

Set the “Closure Type” field to “Closure for MAC” to close the financial year / period to post the MAC incorporation entries.
Set the “Closure Type” field to “Provisionally Closed” to close the financial year / period provisionally.
Set the “Closure Type” field to “Finally Closed” to close the financial year / period finally.