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MYOB essential closing financial year

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Schhetri
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MYOB essential closing financial year

Hi There , 

 

I was trying to close last FY 3006/22 but got below message :

 

Starting a new financial year will update your account balances by moving current earnings to retained earnings.

You will still be able to enter transactions in the previous FY.

However all opening balances for profit and loss accounts wil be locked .

 

I am confuesd here . Is this year opeoning balances or last FY opening balances ? Please refer attahced .

 

If anyone could explain or clear would be much appreciated .

 

Regrads, 

Shan 

 

MYOB FY.PNG
1 REPLY 1
Steven_M
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Re: MYOB essential closing financial year

Hi @Schhetri 

 

A key piece of information you need to understand: When you close a financial year, the Profit and Loss accounts are zeroed out so they can start the new financial year at zero. 

When you create an MYOB Essentials business, you might have started in business already and thus have some profit (or loss) potentially. To accurately record that you can enter opening balances for your income, cost of sales and expense accounts (Profit and Loss accounts) at the time of setting up. 

Once you close your first financial year, you lose the ability to enter opening balances for those accounts as you should be recording all your transactions in the company to generate that profit and loss. 

 

So the message is effectively saying,  that opening balances for your profit and loss accounts would not be changeable once that year has been closed, as they would revert back to 0.00 when you start that year.

Kind regards,
Steven

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