QBM Fiscal Year and Closing Date Management

Introduction

In accounting systems, historical transactions must be protected after reconciliation (month-end, quarter-end, or year-end). QBM achieves this through two complementary controls:

• Fiscal Periods (Open/Closed date ranges)
• Books Closing Date (a company-wide lock date)

Understanding Key Concepts

Fiscal Periods

A fiscal period (or fiscal year) defines the accounting period for your business operations. In QBM, fiscal periods have a Start Date and End Date, and transactions can only be created within defined fiscal periods (when fiscal periods exist in your company setup).

Each fiscal period can be in one of two states:

• Open Open: Transactions can be created, edited, and deleted within this period.
• Closed Closed: Transactions within this period are protected. Changes require the Closing Password.

Closing Date (Books Closed Through)

The closing date is a company-wide setting that prevents creating, editing, or deleting transactions on or before a specified date. This is separate from fiscal period closing and provides an additional layer of protection. When both a closing date and closed fiscal periods exist, QBM checks both conditions before allowing changes.

Two Types of Closing Operations

QBM supports two distinct closing operations that serve different purposes:

1) Setting a Closing Date (Basic Lock)

• Sets a date and password to lock transactions on or before the Closing Date.
• Prevents users from creating, editing, or deleting transactions in the locked range without authorization.
• Does not affect account balances and does not create any journal entries.

2) Closing Temporary Accounts to Retained Earnings (Optional Year-End)

This is an optional year-end accounting procedure that transfers balances from temporary accounts (income and expense accounts) to a permanent equity account (Retained Earnings).

• QBM calculates income and expense balances for the specified date range.
• Creates a closing journal entry (GL Type: Closing) to reverse income/expense balances.
• Posts the net result to the Retained Earnings account.
• Records the closing in the History tab for future reference and enforcement.

Accessing Fiscal Year Features

In QBM, these features are accessed from the Company menu in the main window:

1. Click Company on the menu bar.
2. You will see two relevant options:
   • Manage Fiscal Periods... – for creating and managing fiscal year periods
   • Close Fiscal Year... – for setting closing dates and optionally closing temporary accounts

Use the Company menu to open Manage Fiscal Periods or Close Fiscal Year.

Manage Fiscal Periods

The Manage Fiscal Periods dialog allows you to create, view, close, open, edit, and delete fiscal periods. This is essential for defining when your company’s accounting periods begin and end.

Dialog Overview

The dialog displays a grid listing all defined fiscal periods, typically including:

• Name (e.g., “FY 2025”)
• From (Start Date)
• To (End Date)
• Status (Open / Closed)
• Description (optional notes)

Available Actions

Button	Function
New...	Creates a new fiscal period. Enter a name, start date, end date, and optional description.
Close	Marks the selected fiscal period as Closed. Transactions within a closed period require the Closing Password to modify.
Open	Re-opens a previously closed fiscal period, allowing modifications without the Closing Password (subject to other rules).
Edit...	Modifies the selected fiscal period’s details. Availability depends on security permissions.
Delete	Permanently removes the selected fiscal period. Use with caution.
Done	Closes the dialog and returns to the main application.

Creating a New Fiscal Period

1. Open Company → Manage Fiscal Periods...
2. Click New...
3. Enter the Name (e.g., “FY 2025”).
4. Select the Start Date and End Date.
5. Optionally enter a Description.
6. Click OK to create the fiscal period.

Closing a Fiscal Period

Closing a fiscal period marks it as “Closed” and protects transactions inside that date range. This is different from the “Close temporary accounts” feature.

1. Select the fiscal period from the grid.
2. Click Close.
3. Confirm when prompted.
4. The status changes to Closed.

The Manage Fiscal Periods dialog includes period open/close control, create, edit, and delete actions.

Close Fiscal Year

The Close Fiscal Year dialog provides controls for setting a Closing Date and, optionally, performing year-end closing procedures. This dialog has two tabs: General and History.

General Tab

Closing Date (Books Closed Through)

The Date field sets the company-wide Closing Date. As stated in the dialog: “Closing date prevents creating, editing, or deleting transactions on or before the specified date.” This is a protective lock and does not move account balances.

Fiscal Periods Button

Click Fiscal Periods... to open Manage Fiscal Periods without returning to the main menu.

Close Temporary Accounts to Retained Earnings (Optional)

This checkbox enables the optional year-end closing feature. When checked (and a password is provided), QBM will:

• Calculate the balance of income and expense accounts within the specified date range
• Create a closing journal entry (GL Type: Closing) that reverses income and expense balances
• Post the net income (Income − Expenses) or net loss to the Retained Earnings account
• Record the operation in the History tab

When enabled, additional fields appear:

• Account: select the equity account to use as Retained Earnings (or allow QBM to use the system Retained Earnings account).
• From: start date of the closing period (typically the first day of the fiscal year).
• To: end date of the closing period (typically the last day of the fiscal year).

Password Protection

The password section allows you to set or modify the Closing Password:

• Old Password: enter the existing password (if one exists) to make changes.
• New Password: set a new password. To remove the password, leave New Password empty.
• Confirm Password: must match the New Password.

History Tab

The History tab displays closing entries performed using Close temporary accounts to retained earnings. Each record shows:

• Date (when the closing was performed)
• From and To (the period that was closed)

You can typically double-click a record to open the related General Ledger Closing transaction. If your security access does not allow fiscal closing, QBM may hide the History tab.

The Close Fiscal Year dialog includes general closing controls and a history view.

Step-by-Step Procedures

Procedure 1: Setting a Closing Date Only (Lock Only)

Use this to lock transactions up to a certain date without affecting account balances.

1. Navigate to Company → Close Fiscal Year...
2. Select the Date through which books should be locked.
3. Leave Close temporary accounts to retained earnings unchecked.
4. Enter a New Password and confirm it.
5. Click OK.

Procedure 2: Year-End Closing with Retained Earnings Transfer (Optional)

Use this at year-end to transfer income/expense balances to Retained Earnings and record the closing.

1. Navigate to Company → Close Fiscal Year...
2. Set the Date (typically the last day of the fiscal year).
3. Check Close temporary accounts to retained earnings.
4. Select the Account (Retained Earnings equity account) or leave blank to use the system default.
5. Set From to the first day of the fiscal year.
6. Set To to the last day of the fiscal year.
7. Enter a New Password (required for the closing entry to be created) and confirm it.
8. Click OK.
9. Open the History tab to verify the closing entry is recorded, and double-click to view the GL transaction.

Procedure 3: Removing the Closing Date (Clear Closing)

1. Navigate to Company → Close Fiscal Year...
2. Enter the current password in Old Password (if required).
3. Leave New Password empty (and confirm empty).
4. Click OK.

How Transaction Date Validation Works

When you create, edit, or delete a transaction in QBM, the system validates the transaction date using several checks. Understanding this sequence helps you quickly identify why a transaction is blocked.

Validation Sequence

#	Check	What QBM enforces	If blocked
1	Closing Date Check	If the transaction date is on or before the Closing Date, the Closing Password is required.	Enter the correct password or change the date.
2	Account Closing Range Check (History)	If the date falls within a previously closed temporary-account range (From/To), the Closing Password is required.	Enter the correct password or use an allowed date.
3	Fiscal Period Coverage	If fiscal periods exist, the date must fall inside at least one defined fiscal period.	Create a fiscal period that covers the date or change the date.
4	Closed Fiscal Period	If the date is inside a closed fiscal period, the Closing Password is required for changes.	Enter password or reopen the period (authorized users only).
5	Non-Current Date Security	If the transaction date is not today, QBM checks the permission “Allow Changes To Non-Current Transactions”.	Request the permission from your administrator or use today’s date.

Common Issues and Resolutions

Situation	What it means	Resolution
Transaction date is within a closed period	The fiscal period is closed or the Closing Date blocks that date.	Enter the Closing Password when prompted, or change the transaction date. If needed, an authorized user can reopen the fiscal period.
Transaction date is outside all fiscal periods	Fiscal periods exist, but none cover the transaction date.	Create a fiscal period that includes the date, then retry.
Non-current date changes are not allowed	The date is not today and user lacks permission.	Ask your administrator to grant “Allow Changes To Non-Current Transactions”, or use today’s date where appropriate.
Closing Password does not work	The entered password does not match the company Closing Password.	Verify you are using the correct password. If lost, an administrator must reset it (per company policy).

Best Practices

Fiscal Period Management

• Create fiscal periods before starting to enter transactions for that period.
• Use consistent naming (e.g., “FY 2024”, “FY 2025”).
• Close fiscal periods only after reconciliations and final adjustments are complete.
• Keep at least one fiscal period open for current operations.

Closing Date Management

• Set the Closing Date after completing monthly/quarterly reconciliations.
• Use a strong Closing Password and share it only with authorized personnel.
• Advance the Closing Date incrementally (monthly/quarterly) instead of only at year-end.
• Document internal procedures for who can authorize closed-period adjustments.

Year-End Closing (Optional)

• Complete all year-end adjustments before closing temporary accounts to Retained Earnings.
• Verify the Retained Earnings account selection before performing the closing.
• Review the closing entry in the History tab immediately after performing it.
• Use the temporary-account closing feature only according to your accounting policy (typically once per fiscal year).

Security Requirements

Access to fiscal year and closing controls depends on security permissions. If you do not have the required permissions, QBM disables buttons and may hide the History tab.

• Can Close Fiscal Years: required to access and use fiscal closing features.
• Administrator Rights: required to change company-level closing settings (Closing Date / Closing Password) and to perform certain closing operations.
• Allow Changes To Non-Current Transactions: required to create or modify transactions dated other than today.

Summary

QBM’s fiscal year and closing date management features provide robust controls for protecting your financial data:

• Manage Fiscal Periods defines accounting periods and allows Open/Close control.
• Close Fiscal Year (Date only) sets a company-wide lock date requiring a password to modify transactions on/before that date.
• Close Fiscal Year (with Retained Earnings) optionally performs the year-end close by transferring income/expense balances to Retained Earnings and recording it in History.

Need help? Please contact your system administrator or your QBM support channel.