We are using ledger settlements regularly and, sometimes, transactions created throughout the year are settled with opening balances (i.e. some transaction from previous year). This is possible using the standard functionality.
However, we often have audits for the previous year around the middle of the subsequent year, and the audits require us to post some adjustments in the previous fiscal year. When this is done, year end close needs to be run again. Running the year end close deletes all the ledger settlements that have previously been made with opening balances, resulting in losing months of work for multiple legal entities (we have over 100 of them).
Please consider a fix for this scenario, either through making the year end close post only the deltas between the old and the new opening balances, or through some other means.
Comments
In the General ledger parameters, you most likely have "Delete existing year-end entries when re-closing the year" enabled - this means that when you re-close a fiscal year, the original opening transactions will be deleted...but it is not possible to delete an opening balance if the transaction has been settled (as you have experienced). Instead, if you disable "Delete existing year-end entries when re-closing the year", only the differences between the previous and current year-end close will be processed as part of the re-close of the fiscal year, and therefore none of the previous opening transactions will be (or need to be) deleted. Keep in mind though that there are scenarios where this (also called "delta close") is not supported - e.g. if you change the opening account in your Chart of Accounts, change how dimensions are transferred (basically any setting int eh year end close template)
Category: General Ledger
Most of customers will officially closed accounting in June after final auditors approved the account. Waiting this date, no settlement can be done between opening balance and 2023 transactions. correction may be requested for 2022. It is mostly adjustment, but all closing need to be redone. on previous version, there was a way to add only modification to the opening balance.1- transactions were marked as closed2- new transactions were then unmarked3- new year end closing took only the unmarked transactionsin this case, closing and settlement can be done whenever customer needs. Only correction will be considered in the new closing (with an option consider only unmarked transaction)This should be an option to avoid pain on daily work.Companies must provide monthly reporting and settlement can be critical to justify account whenever requested.
Category: General Ledger