Multi-Company Year End Process

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Odoo          
v 7.0 Third Party 32
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Technical name elico_multi_company_year_end_process
LicenseAGPL-3
Websitehttp://www.openerp.net.cn
Repositoryhttps://github.com/Elico-Corp/odoo-addons#5.0
Required Apps eInvoicing (account)
Included Dependencies

Multi-Company Year End Process Module:

This module adds the the following functionalities to the multi-company financial statements modules:
  • Multi-Company Period Closing wizard
  • Multi-Company Fiscal Year Closing Wizard
  • Multi-Company Period Opening Wizard

DATA MODIFICATIONS

The following field are used from the elico_multi_company_financial_statements module (mainly for profit and loss calculation process based on level1 split):
level1: used for the 1st level accounting classification (IFRS/US-GAAP compliant account types).
Asset Liability Equity Income Expense

ADDITIONAL SET-UP

Additional Financial Accounts setup to be done after module is implemented for correct period close process (if a "net income account" is selected) :

  • For all accounts: Set up the correct user_type (account_account_type).
  • For all accounts user_types: set up correct IFRS account type in Level 1 with the correct IFRS

account type (Income/Expenses/Liabilities/assets/Equities).

An example of hierarchy is given for level 1 and level 2. Those levels can be amended in the menu Account Report Attribute.

WIZARD PROCESS SUMMARY

1.FISCAL YEAR CLOSE - Choose the company (Company must be a child of user's company) and fiscal year to close. - It launches 3 SQL statements to set state 'done' to Journal, period and fiscal year for the selected fiscal year.

2.PERIOD CLOSE - Choose the company (Company must be a child of user's company) and periods. - If a "net income account" is selected, calculates the result of the selected periods

(IMPORTANT: based on income/expense value in account_type_level1) and input in selected "net income account" (nothing is done if no account input).
  • Launches 2 SQL statements to set state 'done' to selected journals and periods.

3.PERIOD OPEN - Choose the company (Company must be a child of user's company), periods to be opened and closed, opening journal

and write-off information for reconciliation.
  • According to deferral method, creates new moves in the first period of new fiscal year
  • Launches "reconcile" for move_line
  • Updates the end_period_journal in the fiscal_year

ACCOUNTING CLOSING/OPENING PROCESS

O.PRELIMINARY SETUP:
  • Create a specific account type for Period end process with the following parameters:
(Financial Management -> Configuration -> Financial accounting -> Financial Accounts)
Name: 'Period closing' Code: 'closing' Sign: 'Positive', Deferral Method: 'None',
  • For all account types, setup the account type « deferral method » to determine how the information is
copied from one year to another:
1.'none': accounts for which you dont want any information to be passed to the new year 2.'unreconciled': Accounts for which you need to transfer unreconciled information 3.'detail': copy all account details from the closing year to the new one. 4.'balance': copy only the balance of previous year into new year
  • Create an account 'Opening Balance Account' for the centralized moves:
(Financial Management -> Configuration -> Financial accounting -> Financial Accounts)
Name: 'Opening Balance Account' Code: OBA Parent: none Account Type: 'Period closing' Reconcile: false Display History: true Internal Type: 'Others'

If needed, create in the same way a 'Closing Balance Account' ('CBA').

  • Create a new Journal 'Opening Balance Journal' to centralize the opening moves
(Financial Management -> Configuration -> Financial Journals)
Type: 'Situation', View: 'Journal View', Entry Sequence: 'Account Journal', Default Debit Account: 'OBA Opening Balance Account', Default Credit Account: 'OBA Opening Balance Account', Centralized Counterpart: true others parameters: false

If needed, create in the same way a 'Closing Balance Journal'.

  • Other checkings:

    1.Check that all your accounts have the correct « account type ». 2.Create a balance sheet summary income account (Net Income - 20cy[closing year]). Equity account aimed to sum up all net income for the year to be closed. 3.Validate all transaction and postings (Financial/Periodical Processing/Validate account moves).

1. CLOSING ANY PERIOD PROCESS (During the Year) When a month/quarter/year is finished and all movements of the period are accounted (cy=closing year, ny=new year):

  • Reconcile all accrual accounts for the period (accounts payable and receivable, etc.).
  • Issue the Statement of Income for the previous period.
  • BACKUP YOUR DATABASE
  • Run the 'Multi-Company Close Period Wizard' for the selected company and periods (month/quarter or year) which
perform the following:
  • The income and expense account transactions for this period are summed up into a balance sheet summary income

account (« Net Income - 20cy », Equity Account) - Transaction details of income and expenses accounts are transfered to the closing journal as centralized entries for the prior period. - Income and expense accounts balances are zeroed with regard to the period transactions and readies the accounts for the start of a new monthly/quarterly period. - The account_journal_period and account_period table states are set to 'done' for the selected periods.

  • During the year, closing period process can be done for every period (1 every month/quarter or only once a year)
2.CLOSING FISCAL YEAR PROCESS:
  • Apply the CLOSING ANY PERIOD PROCESS for the last period/year (eg: December, 04/20cy or 12/20cy).

This usually occurs in the first weeks of the next fiscal period/year. - Create a special adjustment period (13th) in the closing year (eg: 13/20cy) with date 31/12 and parameter 'Opening/closing Period' (Which allows overlapping periods). - Create any late-arriving transactions (after period/year-end) and any balance sheet adjustments between prior year and new year deemed necessary by the accountant in a special adjustment period (13th month). - When all transaction are accounted for the closing year (however many weeks/months later): A. PRELIMINARY STEPS:

1.BACKUP YOUR DATABASE. 2.Transfer the 'Net Income - 20cy' account balance into 'Retained Earnings' for corporations or 'Owner Investments' for Limited-Companies/Partnerships/Sole-Proprietors and this net income account then has a zero balance and can be made inactive. 3.If the organization is a corporation and is declaring a year-end dividend then debit Retained Earnings for the full amount of the dividend and credit each Shareholder account for their share of the dividend. (Retained Earnings = Beginning RE + Incomes - dividend, could be negative in case of loses) 4.Apply the CLOSING ANY PERIOD PROCESS to the adjustment sub-period (13th month). This will leave only new year transaction entries in the income and expense accounts. 5.Official year-end Statement of Financial Position can now be generated.
  1. OPENING THE NEW FISCAL YEAR:
    • Create a new fiscal period/year (eg: 20ny) and sub-periods and enter all new period/year transactions into the new

    period (eg: 01~04/20ny or 01~12/20ny). - Create one period (eg: 00/20ny) with date 01/01 and parameter 'Opening/closing Period' (Which allows overlapping periods). This period will be used to store all previous year transactions for the opening balance, - Run the 'Multi-Company Period Opening Wizard" for the selected fiscal year and company. The following process will be executed:

    • According to deferral method, creates new moves in the first period of new fiscal year

      1.'none': nothing done and no account information transferred from the closing period/year to the new one (usually used for view and P&L accounts: expense/income) 2.'unreconciled' : moves only « unreconciled entries » (eg: unpaid invoices) from the closing period/year to the new one (usually used for receivables and payables accounts). 3.'detail': copy all account details from the closing period/year to the new one. (eg for Equities). 4.'balance': create only one move in the new period/year holding the account balance of the previous one (used for most of the other accounts)

    • Launches "reconcile" for move_line

    • Updates the end_period_journal in the fiscal_year

  2. ONCE ALL INVOICES AND MOUVEMENTS ARE DONE IN PREVIOUS FISCAL YEAR,

    Run the 'Multi-company Close Fiscal Year Wizard' for the selected fiscal year and company - The account_journal_period states are set to 'done' for the fiscal year. - The account_period table states are set to 'done' for the fiscal year. - The account_fiscalyear states are set to 'done' for the fiscal year.

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