Your software works on a 12 month accounting period, referred to as your financial year. You enter this in the Active Setup wizard when you set up your company.
It's really important to make sure this date is correct as when you record transactions their values update to an accounting period on your nominal accounts based on your financial year date and the transaction date.
You may also notice your software displays a warning message when a transaction date does not fall within the current financial year. At that point you can choose whether to post the transaction to your accounts or not.
At the end of the 12 month period you run the year end to change this date for the new financial year. Find out more.
If you change the financial year your nominal values may not be correct as the profit and loss nominal codes are not cleared which can cause a brought forward value to appear. For full information about how to change the financial year and correct the values, please refer to Ask Sage article 11307.
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