Orax SDI Cloud Reference

  1. Introduction
  2. Self-Management tools
  3. Communication and Content management
  4. Sales and Customer Relationship Management
  5. Services & Service level management
  6. Billing and customer statements
  7. Inventory & Asset management
  8. Production management
  9. Human Resources and Payroll
  10. Procurement and Supply chain
  11. Ledgers & Accounting
  12. Reporting and Analytics
  13. Administration & configuration
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Financial Year-end procedures

Due to the fact that a financial year ends on a specific date and the very next day a new financial year starts, you will suddenly be dropped into a new financial year where all opening balances are zero. From a GL perspective its not a big deal, but from an inventory perspective it can be disruptive.

Due to the real-time function of inventory levels in a business the Inventory uses an effective financial year that automatically switches over to ensure its always correct and current. This means that its possible to have a different financial year configured for the GL than the Inventory module. The inventory module will always use the current/effective financial period to ensure that stock levels are up to date.

It is important to understand year-end procedures that you need to perform to ensure that there is no or very little disruption to your day-to-day business during a financial year transition.

Inventory Year-end Procedures
It is best practice to plan a company-wide stock take for the last day of the year. The stock take ensures that correct levels are available for company financial statements and that opening balances are available for the new year the next morning. You may opt to not do a stock take, but this is not advisable unless you know that your inventory levels are accurate. There are no other procedures to complete during the year end for inventory. This system will automatically switch over to the new year and ensure that all opening balances are generated based on the previous year's closing balances.

Should you experience issues with inventory disappearing after year end it means the opening balances for the new year were not automatically imported. To manually import opening balances, go to the Inventory tab, click on "Adjustments" and scroll down to the bottom. There is an option to generate opening balances. Remember to first switch the system to the new financial year, or you will be calculating opening balances for the previous year.

Keep in mind that year end is a great time to assess the accuracy of your system levels. If you find that there are large discrepancies, you may need to address the issues causing these discrepancies (eg. procedures, losses, damages, etc). If you do not do this it may result in poor system value and inefficiencies in your inventory management.

Accounting Year-end Procedures
The accounting system is build around the General Ledger. At the end of a financial year, the current balance of each balance sheet account is closed, and a new opening balance is available the next day. It is your responsibility to ensure that all GL accounts have correct closing balances by Posting all transactions to the GL for the previous financial year after close of business on the last day, or on the morning of the next day. It may be necessary to post transactions several weeks later once all bank statements and Journals have been complete for the old year.

Once all closing balances for the previous year are posted correctly, switch the financial year to the next (current) year and generate opening balances based on the previous year. You may also manually enter the opening balances for the next year, but if customer accounts and inventory accounts have opening balances it may be easier to generate them and only change that which needs adjustment. Opening balances will usually be unbalanced. This discrepancy relates to a profit or loss accounted for in the previous year and is automatically posted to the Retained Income account to ensure the Trial Balance remain balanced.

Pricing changes
Most companies apply price increases once per year. If this coincides with your financial year-end, you'll need to plan for this as well. All prices in Orax SDI are active, so you cannot import or apply increases ahead of time. You have to make the changes on the evening or morning before they are applicable.

IMPORTANT!!! Always ensure that you have the correct financial year setup when you post and generate opening balances. If you set the year incorrectly, you will overwrite the previous year's opening balances based on the one before that. This could mess up your entire Trial Balance of your previous year.


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