A Fiscal Year defines the accounting period used for posting and reporting. ERPNext can support companies with different fiscal-year dates on the same site.
Create a Fiscal Year
- Go to Home > Accounting > Accounting Masters > Fiscal Year.
- Click Add Fiscal Year.
- Enter a name, start date, and end date.
- Add the companies that use it.
- Enable Is Short Year only for a genuine transition period shorter than twelve months.
- Save.
Set the default Fiscal Year
Open the Fiscal Year and use the action to set it as default. ERPNext uses the default year when it initializes posting dates and report filters.
The posting date still determines the actual fiscal year. A transaction cannot be posted outside a valid Fiscal Year for its company.
Create the next year
ERPNext can create the next Fiscal Year shortly before the current year ends. Confirm the dates and company assignment before users begin posting in it.
Fiscal Year, Accounting Period, and closing
These records serve different purposes:
| Record | Purpose |
|---|---|
| Fiscal Year | Defines the accounting year and reporting period |
| Accounting Period | Restricts selected transaction types for a date range |
| Period Closing Voucher | Transfers profit or loss to a closing account |
Creating a new Fiscal Year does not close the previous one. Complete reconciliation, adjustments, reporting, and the closing voucher as separate activities.
Troubleshooting
The posting date is outside the Fiscal Year
Create or assign the correct Fiscal Year to the company. Do not alter historical dates to bypass the validation.
A report opens in the wrong year
Change the report filter or set the intended Fiscal Year as default.