Closing the Fiscal Year and Accounts in Qoyod
The Qoyod system offers more than one way to handle the end of the fiscal year, and the system’s accounting behavior differs depending on the method used.
For this reason, it is important to distinguish between account closing date and closing the fiscal year using the fiscal years feature, as each method has a completely different impact.
First: The Key Difference Between the Two Methods
Account Closing Date
This is a protection measure only, designed to prevent modification of previous data, and is not considered a true accounting closure.
Fiscal Year Closure (Fiscal Years Feature)
This is a true accounting closure that creates a closing entry and zeroes out revenues and expenses, transferring them to the selected equity account.
It is always preferable to use the fiscal years feature when you want to properly close the fiscal year from an accounting perspective.
Method One: Closing Accounts Using the Account Closing Date
Steps to Set the Account Closing Date
From the dropdown menu:
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Go to Settings
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Then General Settings
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At the bottom of the page, you will find the Account Closing Date option
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Select the desired date
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Click Save
What Happens After Setting the Account Closing Date?
After saving the closing date:
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You cannot add or modify any sales invoices
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You cannot add or modify purchase invoices
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You cannot add or modify payment or disbursement receipts
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You cannot add or modify journal entries
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The restriction applies to all documents without exception
The error appears immediately when you try to save any document, whether:
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Saving as approved
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Or saving as draft
Error message text:
“Cannot create a transaction in a closed financial period”
Does This Closure Create Journal Entries?
No.
Setting the account closing date does not create an accounting closing entry and does not zero out revenue and expense accounts.
How Are Profits Carried Forward in This Case?
If the fiscal years feature is not used:
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The system automatically carries forward the net profit or loss shown in the income statement
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The carryforward is based on the fiscal year start date set in general settings
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The carryforward goes directly to the retained earnings account
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You cannot control which account the carryforward is posted to
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No journal entry is created for this carryforward
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Revenue and expense accounts remain visible in the financial statements and are not zeroed out
When Is This Method Used?
This method is used only when the objective is:
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To prevent modification of previous data
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To protect data after work on it is complete
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And it is not a true accounting closure
Making Changes After Closure Using This Method
If you need to add or modify a transaction:
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Go to general settings
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Clear the account closing date
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Add or modify the desired transaction
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After you are done, re-enter the closing date
Method Two: Closing the Fiscal Year Using the Fiscal Years Feature
This is the correct method to properly close the fiscal year from an accounting perspective and carry forward profits or losses to the desired equity account.
Setting Up a New Fiscal Year
From settings:
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Select Fiscal Years
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Click New Fiscal Year
Fill in the following information:
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Year name (for example: 2025)
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Start date (must be the first day of the month)
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Number of periods (2 for “semi-annual,” 4 for “quarterly,” or 12 for “monthly” only)
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Click Save
Closing the Fiscal Year
How to Close the Year
From the fiscal years menu:
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Click the Close icon next to the desired fiscal year
During closure:
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The system asks you to select the profit account to which the net profit or loss will be carried forward
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This account cannot be changed later after confirming the closure
What Happens Automatically After Closing the Fiscal Year?
Once the closure is executed:
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All periods belonging to the fiscal year are automatically closed
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The system creates an automatic accounting closing entry
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The entry date is the last day of the fiscal year
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The entry:
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Closes all revenue accounts
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Closes all expense accounts
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Carries them forward to the selected profit account
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Impact of Closure on Financial Statements
After closure:
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The income statement becomes zero-balance
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No revenues or expenses appear after the closing date
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To review revenues and expenses before closure, you must extract the income statement with a date before the closing date
Illustrative Example
If the closing date is 31/12/2025
Extract the income statement from 01/01/2025 to 30/12/2025 to show all revenues and expenses.
Where to Find the Closing Entry
You can review the closing entry through:
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Reports
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Journal entries
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Setting the date to the last day of the fiscal year
The entry will appear with the type:
ar.activerecord.attributes.fiscal_year.title
The impact of the entry also appears in the account statement for the profit account that was selected at closure.
Closing or Opening Periods Within the Fiscal Year
From fiscal years:
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Click View next to the year
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Next to each month you will see the option to:
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Close
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Or reopen
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You can:
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Close a specific period
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Reopen it for editing
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Then close it again
Very Important Alerts
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The fiscal year start date must be the first day of the month
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If the entire fiscal year is closed, it cannot be reopened
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Closing periods protects data during audits
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You cannot create any transactions for a closed fiscal year
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The message appears:
“Cannot create a transaction in a closed financial period” -
The message appears immediately when saving the document, whether as approved or draft
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The closure applies to all documents without exception
Making Changes After Closing the Fiscal Year
If Closure Was Done Using the Account Closing Date
You can:
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Clear the closing date
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Make the change
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Reset the closing date
If Closure Was Done Using the Fiscal Years Feature
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You can only reopen the periods
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You cannot reopen the fiscal year after it has been completely closed
I Accidentally Closed the Year, What Should I Do?
You cannot make changes directly, even with a technical request.
The only solution:
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Delete the entire fiscal year through the technical support team
Required information:
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Entity number
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Entity name
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Specify the fiscal year to be deleted
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Add Qoyod support
After that, the request is forwarded to the support team to execute the technical procedure.
Required Permissions
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To set the account closing date:
You must have permissions (create, edit, delete, approve) on general settings -
To close the fiscal year:
You must have permissions (create, edit, delete, approve) on fiscal years
Permissions are configured from:
Settings → Users → Manage Roles
Training Course
Easier year-end with Qoyod, how to use and financial closure
https://www.youtube.com/watch?v=cCgZy5ylqXE&t=6088s
