How to Close an Accounting Period and Edit or Delete Opening Balances in FalconPro Real Estate Software

How to Close an Accounting Period and Edit or Delete Opening Balances in FalconPro Real Estate Software

Introduction

Closing an accounting period is an essential step for financial reporting. FalconPro Real Estate Software allows users to close an accounting period, generate closing vouchers, and transfer balances to the next year. Additionally, users can edit or delete opening balances if needed, depending on company policies.

This guide explains:
✅ How to close an accounting period in FalconPro
✅ How to create and manage closing vouchers
✅ How to reopen a closed period if adjustments are required
✅ How to edit or delete opening balances for a new financial year

1. Closing an Accounting Period in FalconPro

At the end of a financial year, companies must close the current accounting period and transfer balances to the next year.

Steps to Close an Accounting Period:

  1. Navigate to General Ledger:
    Go to Accounting → General Ledger.
  2. Select the Period to Close:
    Choose the year to be closed (e.g., 2022).
  3. Decide Whether to Create a Closing Voucher:
    • Option 1: Create Closing Voucher
      • Generates a profit and loss closing voucher, transferring net profit to the retained earnings account.
      • The system will display a preview of the voucher before saving.
    • Option 2: Close the Period Directly
      • Transfers all balances to the next year without generating a closing voucher.
  4. Confirm Closure:
    Click Save to finalize.

✅ Result: All balances from the closed period (e.g., 2022) are transferred as opening balances to the new period (e.g., 2023).

2. Checking Opening Balances in the New Period

After closing an accounting period, balances from the previous year are automatically transferred.

Steps to Verify Opening Balances:

  1. Go to Reports → Accounting → Trial Balance.
  2. Retrieve the report for the new year (e.g., 2023).
  3. Check that all balances are correctly transferred.

✅ Note: The system automatically carries over closing balances as opening balances in the new period.

3. Reopening a Closed Accounting Period

If adjustments are needed, FalconPro allows authorized users to reopen closed periods.

Steps to Reopen a Closed Period:

  1. Go to General Ledger → Accounting.
  2. Select the closed period (e.g., 2022).
  3. Click on “Open Period” to revert the closure.
  4. Confirm authorization (only authorized users can reopen a period).

✅ Result: Transactions can be made in the reopened period.

4. Editing or Deleting Opening Balances in FalconPro

Adjust opening balances in the new period before finalizing reports.

Steps to Edit or Delete Opening Balances:

  1. Enable Editing of Opening Balances:
    • Go to General Ledger → Accounting.
    • Choose the current period (e.g., 2023).
    • Click Enable Open Balance Editing.
  2. Modify or Delete Balances:
    • Edit a Specific Balance: Click on an account and change the amount.
    • Delete All Opening Balances: Requires password authorization.
  3. Save changes to finalize adjustments.

✅ Use Case: Reset balances for a new financial year.

5. Creating Manual Opening Balances in FalconPro

If opening balances are deleted, re-enter them manually via a journal voucher.

Steps to Create a Manual Opening Balance Voucher:

  1. Go to Accounting → General Ledger → Create Journal Voucher.
  2. Enter the date as January 1 of the new year (e.g., 01/01/2023).
  3. Select each account and enter the opening balance.
  4. Assign the correct cost centers.
  5. Save the journal voucher.

✅ Result: Financial records start fresh with accuracy.

6. Best Practices for Managing Accounting Periods in FalconPro

  • ✅ Always review financial reports before closing a period.
  • ✅ Use closing vouchers to ensure net profit is transferred correctly.
  • ✅ Reopen periods only when necessary and with proper authorization.
  • ✅ Edit opening balances only when required to maintain financial accuracy.
  • ✅ Use manual journal vouchers for controlled adjustments.

Conclusion

FalconPro Real Estate Software provides flexible and secure options for closing accounting periods, transferring balances, and modifying financial data when necessary. By following these steps, businesses can maintain accurate financial records while ensuring compliance with accounting best practices.

FAQs

1. What happens if I close an accounting period without creating a closing voucher?
All balances will be transferred to the next year without an automatic profit and loss adjustment.

2. Can I reopen a closed period after making a mistake?
Yes, authorized users can reopen a closed period to make adjustments.

3. What is the purpose of enabling open balance editing?
It allows users to modify or delete opening balances before finalizing financial reports.

4. How do I completely reset opening balances for a new year?
Delete all opening balances using password authorization, then create a manual opening balance voucher.

5. Can FalconPro generate reports showing changes in opening balances?
Yes! FalconPro tracks all changes in the General Ledger Edit Log for audit purposes.

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