Closing the Accounting Period in FalconPro Real Estate Software: Complete Guide

Closing the Accounting Period in FalconPro Real Estate Software: Complete Guide

Introduction

Closing accounting periods is a critical process in FalconPro Real Estate Software, ensuring accurate financial reporting, proper opening balances, and compliance with audit requirements. This guide explains how to open, edit, and close accounting periods, link transactions to the correct period, and handle common issues for smooth year-end and period-end procedures.

Managing Accounting Periods

Editing Period Dates

  • Edit Period:

    • If you need to extend a period (e.g., combine 2019 and 2020 transactions), use the “Edit Dates” option to adjust the start and end dates.

    • This allows you to continue posting transactions for both years until you are ready to split or close them.

Opening a New Period

  • Open New Period:

    • Click “Open New Period” and enter the desired start and end dates (e.g., 01/01/2020 to 31/12/2020).

    • Decide if the new period will be the current period. If so, select this option before saving.

    • Save the new period. You can now post transactions for the new period.

Linking Transactions to the Correct Period

  • Default Period Assignment:

    • When entering transactions, the system defaults to the current period.

    • If you have the authority, you can change the period during transaction entry (e.g., in journal vouchers).

    • For receipts and other transactions without a period selection, they are automatically linked to the current period.

  • Relinking Transactions:

    • Use the “Link Voucher with Period” option in the General Ledger to move transactions to the correct period.

    • Select the period, review the list of transactions, and save to link them accurately.

Closing a Period

Steps to Close a Period

  1. Ensure All Transactions Are Posted:

    • Before closing, all vouchers must be posted (boosted). If any are unposted, the system will prompt you to post them first.

  2. Move Transactions from Parent to Child Accounts:

    • If transactions exist under parent accounts, move them to the appropriate child (last-level) accounts using the utility in Administration.

    • This process requires a one-time password for security and is logged for audit purposes.

  3. Close the Period:

    • In the General Ledger, select the period to close (e.g., 2019).

    • Click “Close Period” and select the next period (e.g., 2020) to transfer closing balances as opening balances.

    • Confirm and save. The closed period will no longer accept new transactions, and balances are carried forward.

  4. Optional: Create a Closing Voucher:

    • Some companies prefer to post a closing voucher to balance all accounts before closing the period.

    • This voucher moves balances to the closing account (e.g., profit account) and is also logged for reference.

Transaction Log

  • The system maintains a detailed log of all period openings, closings, and transaction moves, including user, date, and action taken.

Additional Utilities

  • Moving Transactions to Child Accounts:

    • Use the utility in Administration to move transactions from parent to child accounts before closing.

    • Enter a one-time password, provide remarks, and confirm the move.

  • Setting the Current Period:

    • You can set any open period as the current period for transaction posting.

Best Practices

  • Always post (boost) all vouchers before closing a period.

  • Move all transactions from parent to child accounts to maintain a clean chart of accounts.

  • Use the transaction log for audit trails and compliance.

  • Only users with proper authority should perform period closing and transaction moves.

  • Back up your data before making structural changes.

Frequently Asked Questions (FAQ)

Q1: Can I post transactions to a closed period?
No, once a period is closed, you cannot post new transactions to it.

Q2: What if I need to move transactions to a different period?
Use the “Link Voucher with Period” utility to relink transactions to the correct period.

Q3: How do I handle transactions under parent accounts?
Move them to child accounts using the utility before closing the period.

Q4: Is there an audit trail for period closing?
Yes, all actions are logged with user, date, and details for transparency.

Q5: What happens to balances after closing a period?
Closing balances are transferred as opening balances to the next period.

Important Links