It is important to understand the concept behind financial years in Orax SDI. Accounting (a result of buying and selling) as well as Inventory levels (also a result of buying and selling) is all contained in financial years. So whether you are involved in managing Inventory or selling or buying, its important to ensure that you correctly configure the current financial year.
Years are units that can be closed off to ensure that no changes are made to a closed period. The reason for this is that you can contain the balances and performance of a previous year, while transacting in another financial year without affecting the previous year. It also allows you to change your way of working and transacting from year to year, without having moving balances. The start of every new financial year is a new start. It is a time to reflect on the performance of the previous year and strategise changes for the next year in order to improve performance and efficiency. Financial years also enable you to reconcile inventory and accounting properly, and compare performance and balances over time.
IMPORTANT NOTE: On the first day of a new financial year, all balances for the GL will be reset. The physical Inventory will automatically generate opening balances for the new year based on the closing balances of the previous year (the day before). However the GL inventory will start with null balances. You will need to do a stocktake on the last day of the financial year, and manually import the levels into your GL inventory. The GL will not generate automatic opening balances.
It's also important to understand that the physical (not GL) Inventory will always select the current financial year, no matter what year is configured in Ledgers. This is to ensure that stock levels are always up to date.
See the next section for managing financial year-ends.