Accounting Settings

This guide is for an ADMIN preparing accounting for the first time. These settings control the fiscal calendar and report presentation. They do not replace decisions by the company’s chartered accountant (CA).

Before changing settings, read Financial Reports and the relevant terms in the Glossary.

Before you start

Agree the following with the CA:

Decision	Why it matters
Financial year start month	Determines every fiscal year’s twelve monthly periods.
Opening balance cutover date	Determines the date on which approved opening balances enter this system.
Retained earnings account	Receives the year’s profit or loss during year-end close.
Chart-of-accounts structure and classifications	Controls where balances appear in financial reports and which accounts qualify as cash or bank.
Required opening balances and adjustments	Reports contain only entries posted in this system.

An ADMIN implements these decisions. The CA remains responsible for their accounting suitability and for tax, VAT, depreciation, accruals, provisions, audit adjustments, statutory disclosures, and filing decisions.

Open Accounting Settings

Open Accounting Setup > Accounting Settings (/accounting/settings). The page contains reporting defaults, retained earnings, and a link to fiscal-period management.

Financial Year Start Month

Select the first month of the financial year, such as July.

For example, selecting July means a generated fiscal year runs from 1 July through 30 June and contains twelve calendar-month periods.

Choose this value before generating the first fiscal year. As soon as any fiscal year exists, the setting is locked because generated period dates depend on it. Deleting or casually rebuilding accounting history is not a valid way to change the financial year basis. If the selected month is wrong after generation, stop posting and agree a controlled correction with the CA and system administrator.

Use Manage Fiscal Periods to generate fiscal years and to review, close, or reopen monthly periods. Changing the start month does not itself generate a calendar.

Base Currency: BDT

The ledger base currency is fixed as BDT and cannot be edited. Financial reports display BDT. Sales and settlement workflows that record an exchange rate convert their accounting values using that saved rate. For example, a USD 750 Commercial Invoice at BDT 120 per USD is posted as BDT 90,000 of Accounts Receivable and Revenue.

Important limitation: Foreign-procurement booking is not fully modeled. Purchase Orders and Supplier Bills do not currently carry a booking exchange rate, so their journal values retain the existing base-BDT assumption. Do not use non-BDT procurement without an approved accounting procedure and CA review.

The CA should approve exchange-rate sources and any required adjustment policy. See Automatic Accounting Postings for foreign-currency receipt and LC realization effects.

Opening Balance Cutover Date

The cutover date is the agreed opening date for balances brought into this system. Leave it blank only when no cutover has been agreed.

Example: if approved closing balances from the previous system are carried into this system on 2026-07-01, use 2026-07-01 as both the cutover date and the opening-balance import date.

Important controls:

An opening-balance import must use the configured cutover date when one is set.
If the field is blank, the first posted opening-balance import sets it to that import’s opening date.
After an opening-balance import has ever been posted, including one later reversed, the cutover date is frozen.
Do not use this field to move ordinary transactions between periods.

The CA should approve the date and opening balances before posting the import. Reconcile the approved opening trial balance after posting.

Default Report Hierarchy

Select Level 1, Level 2, or Level 3 as the default report detail when a report does not specify a level.

Level 1 gives the broadest summary.
Level 2 shows an intermediate breakdown.
Level 3 gives the most detailed hierarchy presentation.

Hierarchy changes presentation only. It does not change the entries, account balances, or report totals. Individual reports can override the default. A deeper level is useful for review, while a shallower level is often easier for management summaries.

Retained Earnings Account

Select the account approved for accumulated profit or loss. The picker permits only an active leaf account classified as Equity. A leaf account is an account with no child accounts.

This account is required for year-end close. The close clears non-zero Revenue and Expense balances for the year and transfers net profit or loss to retained earnings. For example, if the year’s revenue is BDT 150,000 and expenses including cost of goods sold are BDT 105,000, net profit is BDT 45,000 and the close credits the selected retained earnings account.

Do not select a temporary account or a heading account. Ask the CA to confirm the exact chart-of-accounts code. Changing the selection later does not rewrite prior close journals.

Save Changes validates and saves changed fields. It is disabled when nothing has changed.
Reset discards unsaved edits and restores the last saved values. It does not undo previously saved settings.
Manage Fiscal Periods opens the fiscal calendar workspace. Use it to generate calendars and manage period status; it does not save unsaved settings on the current page.

Save settings before selecting Manage Fiscal Periods if both actions are required.

Recommended setup sequence

Obtain written CA approval for the financial year basis, cutover date, chart classifications, and retained earnings account.
Complete the chart of accounts, including an active Equity leaf for retained earnings and correctly classified cash and bank accounts.
Set the Financial Year Start Month, Opening Balance Cutover Date, Default Report Hierarchy, and Retained Earnings Account.
Select Save Changes.
Select Manage Fiscal Periods and generate the required fiscal years.
Validate and post approved opening balances.
Open Accounting Setup > Readiness, investigate blockers, resolve those that apply to the task, and review warnings with the CA.
Review the reports described in Financial Reports.

Common mistakes

Generating a fiscal year before confirming its start month.
Treating the cutover date as an editable reporting filter.
Selecting an Equity heading instead of an active leaf account for retained earnings.
Expecting hierarchy level changes to alter totals.
Assuming a readiness pass replaces CA review.
Posting opening balances or operational documents before the relevant period exists and is open.

Return to the Accounting User Guides index.

Reviewed against the application on: 2026-08-21