Fiscal Year Close

Purpose

This guide helps a non-accountant ADMIN prepare, preview, close, verify, and, only when necessary, reopen a fiscal year in Supply Weave.

Fiscal-year close is a controlled year-end accounting action. It is not the same as closing the 12 monthly periods, and it is not professional certification. Complete the Monthly Period Close procedure for each month before using this guide. The shorter control checklist is the Operator Period-Close Checklist.

Manage fiscal-year close at Accounting Setup -> Fiscal Periods (/accounting/fiscal-periods).

What Fiscal-Year Close Does

The fiscal-year close clears the year’s Revenue and Expense account balances and transfers the final profit or loss to the retained-earnings account selected in Accounting Settings.

Revenue and Expense accounts are often called nominal accounts. Their activity measures one fiscal year’s performance.
A profit increases retained earnings; a loss reduces retained earnings.
The original operating transactions remain in the ledger and in historical reports.
The close creates a numbered close run so every close and later reopen remains in Closing Trail.
When all nominal balances are zero, a no-activity year can close without a closing journal. The close run and audit evidence still exist.

Closing does not verify missing documents, complete external reconciliations, calculate tax or VAT, decide accounting policy, or replace CA review.

Required Sequence

Two sequencing controls apply:

Close the oldest open fiscal year first. If an earlier year remains OPEN, close it before a later year.
Reopen the newest closed fiscal year first. If a later year is CLOSED, it must be reopened before an earlier closed year can be reopened.

These rules preserve a clear retained-earnings history. Do not bypass them by creating journals or changing dates without approved accounting evidence.

Prerequisites

Before reviewing Close Preview, confirm:

All 12 periods in the fiscal year are CLOSED.
Each month was completed under the Monthly Period Close procedure.
The fiscal year is the oldest year still OPEN.
Source-document completeness and cutoff reviews are complete.
Bank, cash, customer, supplier, inventory, advance, LC, tax, VAT, payroll, fixed asset, depreciation, accrual, and provision reconciliations applicable to the business are complete.
All CA-approved year-end adjustments have been posted and the affected monthly period has been re-closed.
Accounting Settings contains the approved retained-earnings account. It must be an eligible active Equity posting account.
Accounting Readiness findings, unresolved accounts, abnormal balances, and report reconciliation differences have been investigated.
Final year-end reports and supporting schedules have been reviewed by the finance owner or CA.
A specific close reason and approval reference are ready.

If any month is still OPEN, use the period’s Close action and complete the monthly procedure. Do not close a month merely to enable fiscal-year close.

Review Close Preview

Open Accounting Setup -> Fiscal Periods (/accounting/fiscal-periods).
Select the intended fiscal year in the page filters.
Verify the fiscal-year name, inclusive date range, and OPEN status in the fiscal-year panel.
Review Close Preview. Wait for Running close checks… to finish.
If the badge shows Action required, read and resolve every displayed blocker.
Refresh the page or preview after corrections. Continue only when it shows Ready to close and All year-end close checks passed.

The preview applies year-specific, contextual close controls. These include the 12 period statuses, required sequence, relevant accounting configuration and readiness, retained earnings, and report integrity. The global Accounting Readiness page remains a useful diagnostic, but the close action evaluates the blockers relevant to this fiscal year again. A globally passing badge is not a substitute for Close Preview, monthly close work, or CA review.

The close button remains unavailable while preview checks are running or blockers remain.

Understand Year-End Summary

Review Year-End Summary before closing:

Field	What to check
Final result	The calculated net profit or loss in BDT agrees with the reviewed Profit & Loss and approved year-end schedules.
Nominal accounts	The number of Revenue and Expense accounts with balances is plausible and investigated.
Closing journal	`Required` means non-zero nominal balances must be cleared. `Not required` is valid for a year with no nominal activity to clear.

The closing journal clears each non-zero Revenue and Expense balance and transfers the net result to retained earnings. It does not alter the historical Profit & Loss: year-end close entries are excluded from that report so the year’s operating result remains visible.

Use the report links in Year-End Summary:

Open Trial Balance for the fiscal year. Confirm opening, period, and closing debit and credit reconciliations and investigate unresolved accounts.
Open Profit & Loss for the complete fiscal-year date range. Confirm the final net result and review Revenue and Expense classifications.
Open Financial Position as of the fiscal-year end. Confirm assets, liabilities, equity, retained earnings, current-year or prior-year earnings presentation, abnormal balances, and visible reconciliation.
Use General Ledger for all material nominal accounts and retained earnings to support the final amounts.
Review Receipt & Payment and external cash and bank reconciliations for each applicable month as part of the retained evidence.

See Financial Reports and the CA Handover and Export Guide.

Close The Fiscal Year

Complete this action only after the finance owner or CA approves the final package.

Confirm Close Preview shows Ready to close.
Recheck Year-End Summary, especially Final result and Closing journal.
Select Close Fiscal Year.
In the Close [fiscal year name] dialog, read the explanation that the action transfers the final result to retained earnings.
Enter a specific, nonblank Reason. Reference the approval and final package, for example FY 2025-2026 approved by CA, YE-2026 package v3 rather than done.
Select Close Fiscal Year in the dialog. Cancel exits without closing.
Wait for the action to complete, then confirm the fiscal year shows CLOSED and Year-end close is posted.

The close reason is required. The year is rechecked when the close is submitted, so the action can still reject if data or a prerequisite changed after the preview. Read the message, resolve the cause, rerun reports, and review the preview again.

Verify Year-End Summary And Closing Trail

After close:

Confirm the correct fiscal year is CLOSED, with the expected closing actor and time.
Review Year-End Summary. Confirm Final result, Nominal accounts, and Closing journal agree with the approved preview.
If a journal was required, select Closing Journal and verify that every Revenue and Expense balance was cleared on the appropriate side and the net profit or loss was transferred to the configured retained-earnings account.
If Closing journal says Not required, confirm the year genuinely had no nominal balance to clear. A no-activity close correctly has no journal.
Review Closing Trail. Confirm the latest numbered run is ACTIVE and shows the net result, close actor, close time, and close reason. Use Close journal when present.
Select Audit History and confirm the successful fiscal-year CLOSE event for the correct actor and year.
Rerun Trial Balance, Profit & Loss, and Financial Position for the year-end package. Profit & Loss should preserve operating performance; Financial Position should reflect the transfer into retained earnings.

Evidence To Retain

Retain at least:

fiscal-year ID, name, date range, final status, and all 12 closed period statuses;
monthly close packages and period close/reopen Audit Logs;
fiscal-year Close Preview result and disposition of every blocker;
Year-End Summary, including final result, nominal-account count, and whether a journal was required;
final Trial Balance, Profit & Loss, Financial Position, relevant General Ledgers, and Receipt & Payment exports;
Accounting Readiness review and disposition of warnings and blockers;
external reconciliations, year-end schedules, CA adjustments, and approvals;
retained-earnings account approval and supporting policy;
Closing Trail run number, status, actor, timestamps, reasons, and net result;
closing-journal and reversal-journal references when present; and
fiscal-year Audit History for close, reopen, and subsequent re-close.

Reopen A Fiscal Year

Fiscal-year reopen is an exceptional, approved correction process. It does not erase the original close. It preserves the original run and, where a closing journal exists, records an exact compensating reversal.

Before Reopening

Obtain written approval identifying the error, required correction, affected reports or filings, and reason the current-period adjustment approach is not appropriate.
Confirm this is the newest CLOSED fiscal year. Reopen any later closed years first, in newest-to-oldest order.
Identify every report, reconciliation, approval, filing, and distributed package affected by reopening.
Prepare a specific reopen reason and a controlled correction and re-close plan.

Reopen The Year

Open Accounting Setup -> Fiscal Periods, select the closed fiscal year, and review its Year-End Summary and Closing Trail.
Select Reopen Fiscal Year.
In the Reopen [fiscal year name] dialog, read the warning that this controlled action reverses the year-end close and is audited.
Enter a specific, nonblank Reason referencing the approval and correction plan.
Select Reopen Fiscal Year and wait for completion.
Confirm the fiscal year changes to OPEN and period 12 changes to OPEN. The other 11 periods remain closed unless separately reopened through the approved monthly process.
In Closing Trail, confirm the former run is REVERSED, with the reopen actor, time, and reason.
When an original closing journal existed, select Reversal Journal or Reversal and verify the exact compensating entry. It must reverse the same account amounts at the fiscal-year end; the original journal remains visible.
If the original no-activity close had no journal, no reversal journal is needed. The reversed run and audit event still preserve the history.
Select Audit History and confirm the successful REOPEN event.

Correct And Re-Close

Post only approved corrections. If they require an earlier month, follow the exceptional reopen steps in Monthly Period Close.
Rerun all affected reconciliations, General Ledgers, Trial Balance, Profit & Loss, Financial Position, and Receipt & Payment reports.
Replace superseded report packages and obtain fresh finance-owner or CA approval.
Close any reopened monthly period. Period 12 must be CLOSED again, and all 12 periods must be closed before fiscal-year re-close.
Review the new Close Preview and Year-End Summary. Resolve every contextual blocker.
Select Close Fiscal Year, enter a new nonblank reason referencing the correction and revised approval, and complete the dialog.
Verify Closing Trail contains the old REVERSED run and a new numbered ACTIVE run. Re-close creates a new sequence; it does not reactivate or overwrite the old run.
Inspect the new closing journal when required, rerun final reports, and retain the complete close, reopen, correction, reversal, and re-close evidence chain.

Troubleshooting

Close Fiscal Year Is Disabled

Wait for Close Preview to finish. If it shows Action required, resolve every displayed blocker. Common causes include an open monthly period, an earlier open fiscal year, retained-earnings configuration, or report and ledger integrity findings.

All 12 Periods Appear Closed But Close Still Fails

Reopen the page and check Close Preview rather than relying on the period count alone. Confirm this is the oldest open year, Accounting Settings still contains an eligible retained-earnings account, and the final reports have no unresolved integrity issue. The close performs a fresh check when submitted.

Final Result Does Not Match Profit & Loss

Stop. Check that Profit & Loss uses the complete fiscal-year date range and review its filters. Investigate nominal-account classifications, unresolved accounts, adjustments, and General Ledgers. Obtain CA review before closing; do not enter an unsupported journal to force agreement.

Closing Journal Says Not Required

This is valid only when there are no non-zero Revenue or Expense balances to clear. Confirm the period and source-document completeness. A missing posting can also make activity appear to be zero.

Reopen Fiscal Year Fails

Confirm no later fiscal year remains CLOSED. Reopen years from newest to oldest. Also enter a meaningful, nonblank reason and retain approval for the exception.

Period 12 Is Open After Fiscal-Year Reopen

This is expected. It permits approved year-end corrections and the exact close reversal. Complete the correction review and close period 12 again before attempting fiscal-year re-close.

Reports Changed After Reopen Or Re-Close

This is expected when approved corrections or close/reversal entries change the ledger. Clearly supersede old report packages, rerun the complete year-end set, and use Closing Trail, closing/reversal journals, and Audit History to explain the change.

Return to the Accounting User Guides index.

Reviewed against the application on: 2026-08-21