My new financial year starts in 2 days. I'm okay with setting this up in Solar. Just a few questions:
I presume all outstanding invoices automatically show themselves in the new year account?
When outstanding invoices from the previous year are paid in/out in the new year, will these payments be automatically added/deducted to/from the retained earnings account of the new year file?
If so, will they also be allocated to their corresponding previous year accounts? (which I understand can be viewed by Setup-financial year-revert)
Hi Brian,
Yes, when you tell Solar Accounts to start a new financial year the invoices will remain outstanding. If you record an invoice payment in the new year it will not affect the retained earnings (since invoice payments are like a loan repayment and don't affect profit).
Note that if you start a new financial year then record an expense dated in the previous financial year, this will not affect the retained earnings figure. For this reason you should ensure you have entered all income and expense transactions for the financial year before starting a new financial year. (This means that it might be February before you tell Solar Accounts to start a new financial year).
Regards,
