Mastering the Financial Year Transition: Finsys ERP New Year Creation Guide

Indeed, as the financial year comes to a close, every manufacturing unit faces the critical task of opening a new year in their ERP system. Specifically, for Finsys ERP users, this process ensures that your accounts, inventory, and production data transition smoothly into the next period.

In this guide, we explore the step-by-step procedure to create a new financial year and update your balances without disrupting daily operations.

1. How to Perform New Year Creation

Initially, you must log in to your Finsys ERP server with administrative credentials. Because this is a global setting, creating a new year for one branch will automatically apply it to all plants within your organization.

To begin the process:

1. Navigate to System Administration.

2. Select Company Level Masters.

3. Click on the “New Year Creation” option.

Notably, if the year has already been created, the system will prevent a duplicate entry. However, if you are ready to proceed, you will be prompted to enter your authorized password. Once confirmed, the new financial year (e.g., 2024-25) will appear in your login options immediately.

2. Updating Accounts Posting and Balances

Admittedly, simply creating the year is not enough. To ensure your financial statements are accurate, you must update the opening balances from the previous year. Specifically, this includes Post-Dated Cheques (PDCs), EMIs, and pending GST or TDS entries.

Follow these steps for Accounts Update:

• Go to the Accounts Module.

• Select Master Files.

• Click on “Update Account Balance from Last Year.”

Furthermore, we recommend assigning one person the duty of performing this update weekly during the transition period. Consequently, this keeps your bank reconciliation and ledger balances perfectly synced.

3. Inventory and Stores Posting

Similarly, your raw material and finished goods stock must be carried forward correctly. Typically, if a system updates balances after every single transaction, it may become slow. Therefore, Finsys provides a “Click-to-Go” batch update option.

To update Inventory:

1. Navigate to the Inventory Module.

2. Select Inventory Masters.

3. Click on “Update Item Balance on Last Year.”

As a result, the system will pull the closing stock from March and set it as the opening stock for the new April session. Indeed, this ensures that your production planning and material requirement planning (MRP) start on a solid foundation.

4. Key Takeaways for MIS Managers

Ultimately, the success of a year-end transition depends on discipline. Therefore, keep these three points in mind:

• Authorization: Only authorized personnel should handle the New Year Creation.

• Frequency: Perform balance updates regularly as March month-end entries continue to be finalized.

• Verification: Always verify a few random ledger and item balances after the update to ensure data integrity.

Stay Connected for More Technical Tutorials:

• Official Website: Finsys Infotech Pvt Ltd

• Watch Step-by-Step: Finsys ERP New Year Creation Video

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Finsys ERP: The Ultimate Guide to New Year Creation and Opening Balance Updates

Indeed, the transition to a new financial year is a critical milestone for every manufacturing organization. To ensure a smooth changeover, Finsys ERP provides a robust and automated process. In this guide, we explore exactly how to create a new year and update your opening balances for both accounts and inventory.

Step 1: Performing New Year Creation

Initially, you must navigate to the core administrative settings of your system. Specifically, follow the path to System Admin within the Finsys interface. Once there, you will find the “New Year Creation” button.

Admittedly, this is a powerful feature that requires authorization. Therefore, the system will prompt you for your username and password. After confirming your credentials, the process typically takes only a few seconds to a minute, depending on your database size. Consequently, the new financial year will immediately appear in your login options.

Step 2: Updating Account Opening Balances

However, simply creating the year is only the first step. Crucially, you must carry forward your financial data from the previous period. To achieve this, follow these steps:

1. Navigate to the Accounts module.

2. Select the “Master Files” section.

3. Click on “Update Account Balances from Last Year.”

Furthermore, if you operate multiple factories or branches, the system allows you to update them all simultaneously or one by one. By doing so, you ensure that your bank balances, outstandings, and ledgers remain perfectly synced as you close your March entries.

Step 3: Syncing Inventory and Item Balances

Similarly, your raw material and finished goods stock must be updated to reflect the new year’s opening position. Notably, Finsys ERP uses a “Click-to-Go” batch update system to maintain high performance.

To update your inventory:

• Go to the Inventory module.

• Select Inventory Masters.

• Click on “Update Item Balance from Last Year.”

As a result, the system will overwrite the new year’s opening stock with the most recent closing stock from the previous year. Indeed, we recommend performing this update every few days during the transition period as final audits are completed.

4. Why Regular Updates are Essential

Ultimately, your ERP is only as good as the data it holds. Therefore, frequent posting is necessary to maintain accuracy. Because financial year-end audits often involve late entries, the “Update Posting” feature is designed to be used repeatedly without any risk of data loss.

In conclusion, mastering the Finsys ERP New Year Creation process empowers your team to start the new year with confidence and precision. Choose Finsys to make your year-end transition seamless and error-free.

Stay Connected for More Technical Tutorials:

• Official Website: Finsys Infotech Pvt Ltd

• Watch Step-by-Step: New Year Creation Video Guide

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New Year Creation + Update Posting in Accounts and Inventory

Web Finsys ERP : New Year Creation, Opening Balance Update in Finsys ERP, for FY 2023-24.

Simple Few seconds process
Part 1 : How to create a new year
Part 2 : How to update Accounts Balances ( both ledger and Bill wise)
Part 3 : How to update the Item Balances

Learn the tips, yourself
https://youtu.be/WdCdlfI2VFs

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ERP Software | ABOUT Finsys ERP

Benefits of Using Purchase Return bill, for sending out the Rejections

instead of Delivery Challan + Debit Note.

Method 1 :

–Make a Delivery Challan

–Ask for vendors’ Credit Note

Method 2 :

–Make a Purchase Return Invoice

–And charge him Value + taxes

• There is no section on “Purchase return” in the law.

• There is no notification / Circular on “Purchase returns”

example : if Sale : 1 lakh,  ( inwards material ), and Purchase return invoice : Rs 5000 ( basic value ).. better make a Purchase Return invoice
Purchase Return Invoice Benefits

Benefits no 1

–My books are correct, Vendor account is debited immediately.

–No risk of excess payment to Vendor

Benefit no 2

–E way bill  /

–Document for the “road” movement

–no Risk on the Road

Benefit 3 :

• Vendor Reconciliation is easy

• No risk of goods sent, –But Debit Note not made.

• No risk of goods sent, –Debit Note not sent by courier. Lost on the way.

• Reco problems,  No risk of vendor denying, I don’t know, I don’t remember.

Benefit 4

• Purchase Return Invoice Benefits are GSTR 1 , I am not dependent on the vendor.

• I debit him straight away. I charge him the basic and the tax on that. In GSTR-1, I show this as my outward supply.

• He accepts in GSTR-2.

• Cycle is complete

• So, easy since GSTR2 is automatically made

• Government gets the GST,

• and no need to reconcile the Delivery Challans and Debit Notes / reversals.

• Simplification during the GST audit after some years

Details in the PPT as under

a Purchase Return to Vendor – Purchase return invoice

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