Who works where
Afiavi works from the organization space of her firm, on the book of the client she chooses. A client who keeps its own books uses the same actions in the client space.Record tax provisions
Before closing, Afiavi records a provision for a risk that Akanni Transports must anticipate, with Record a fiscal event. Exowpee posts the opening entry at once, on the accounting date she chooses, which must be in the year and in an open period. Accruals and deferrals are recorded this way too, with a counterpart account that must be named. She follows provisions with List fiscal events. When the risk is gone, she takes back all or part of the provision with Reverse a fiscal event. If she recorded one by mistake, Cancel a fiscal event reverses its opening entry. The event stays visible with the status cancelled. Neither a cancellation nor a reversal can be undone by another action. Provisions that come from depreciation, and the deferred gains that come from the sale of an asset, are created by Fixed assets and depreciation, not by hand.Close the year
Once all periods are closed, and their VAT is declared when the book declares VAT (see Declare VAT), Afiavi closes the year with Close a fiscal year. Exowpee clears the revenue accounts and the expense accounts into the result account in a closing journal. For a loss, it also moves the loss to the loss account. Since all its months are closed, no new entry can be dated in the year.Allocate the result
Akanni Transports made a profit of 12,450,000 FCFA. Afiavi first looks at the suggestion with Preview result allocation, then decides with the owner how the profit is split between the legal reserve, other reserves, retained earnings and dividends. She records it with Allocate the year result. The entry is dated in the next year. The amounts must add up exactly to the result.Carry the balances forward
With Carry balances to next year, Afiavi brings the closing balances of the year into the next one. Accruals and deferrals that are still open are taken back in a second entry.Reopen the year
If the closing must be redone, for example because the allocation was wrong, Afiavi reopens the year with Reopen a closed fiscal year. Exowpee reverses the allocation, the carry forward and the closing entries. The year is open again, but its periods stay closed, so entries dated in the year are still refused. She then closes the year again and records a new allocation and carry forward.The rules
- The accounting module must be part of the organization’s plan.
- Only the provision and regularization profiles can be opened by hand. The subtype must belong to the profile. The accounting date must be inside the year and in an open period. The amount must be a positive whole number. A regularization cannot be added to a year that has been carried forward.
- A reversal cannot exceed the remaining amount, cannot be dated before the opening entry and must fall in an open period. An event of the derogatory depreciation profile cannot be reversed by hand; depreciation runs and disposals take it back.
- A fiscal event can be cancelled only when it was opened by hand, was not cancelled, has no reversal (even partial), and its opening entry is in an open period. Events from depreciation runs or disposals are undone by reversing their entry.
- A year can be closed when it is not closed, all its periods are closed, and every earlier year is closed. When a VAT declaration exists in the book, every period of the year from the first declared period must have one. When the previous year had a result other than zero, it must be allocated first.
- A result can be allocated once per closing. The year must be closed with a result other than zero, and no later year may be closed. The date must fall in the next year and in an open period. For a profit the legal reserve cannot go beyond 20 % of the capital. For a loss only retained earnings is accepted. Each target appears once.
- A carry forward can be posted once per closing. The year must be closed. When the next year is not named, the one starting the day after is used, or created if missing. There must be no gap between the two years.
- Reopening is refused when a later year is closed, when a filing was made for the year or the next one, or, when an allocation or carry forward exists, when the next year has a closed period.
All the actions of this topic
- Reverse a fiscal event (organization): Takes back all or part of a provision or deferral, returning it to the taxable result (organization space).
- List fiscal events (organization): Lists tax-driven provisions and deferrals recorded in the book, with optional overdue filter (organization space).
- Record a fiscal event (organization): Records a tax provision or deferral for a fiscal year and posts its opening entry (organization space).
- View a fiscal event (organization): Shows one fiscal event with its amounts and status (organization space).
- Cancel a fiscal event (organization): Cancels a fiscal event you created by hand and reverses its opening entry (organization space).
- Reverse a fiscal event (client account): Takes back all or part of a provision or deferral, returning it to the taxable result (client space).
- List fiscal events (client account): Lists tax-driven provisions and deferrals recorded in the book, with optional overdue filter (client space).
- Record a fiscal event (client account): Records a tax provision or deferral for a fiscal year and posts its opening entry (client space).
- View a fiscal event (client account): Shows one fiscal event with its amounts and status (client space).
- Cancel a fiscal event (client account): Cancels a fiscal event you created by hand and reverses its opening entry (client space).
- Close a fiscal year (organization): Organization space, on a chosen book. Closes the year once all its periods are closed (and their VAT declared, when the book declares VAT), moving the year’s result into the result accounts.
- Reopen a closed fiscal year (organization): Organization space, on a chosen book. Reopens a closed year so its closing can be redone, undoing the allocation, carry-forward and closing entries made for it. Its periods stay closed.
- Preview result allocation (organization): Organization space, on a chosen book. Shows the suggested allocation of a closed year’s result without recording anything.
- Allocate the year result (organization): Organization space, on a chosen book. Records how a closed year’s profit is split between reserves, retained earnings and dividends.
- Carry balances to next year (organization): Organization space, on a chosen book. After a year is closed, posts the entry that brings its closing balances into the next fiscal year.
- Close a fiscal year (client account): Client space, on the client’s own books. Closes the year once all its periods are closed (and their VAT declared, when the book declares VAT), moving the year’s result into the result accounts.
- Reopen a closed fiscal year (client account): Client space, on the client’s own books. Reopens a closed year so its closing can be redone, undoing the allocation, carry-forward and closing entries made for it. Its periods stay closed.
- Preview result allocation (client account): Client space, on the client’s own books. Shows the suggested allocation of a closed year’s result without recording anything.
- Allocate the year result (client account): Client space, on the client’s own books. Records how a closed year’s profit is split between reserves, retained earnings and dividends.
- Carry balances to next year (client account): Client space, on the client’s own books. After a year is closed, posts the entry that brings its closing balances into the next fiscal year.