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Moving to the Next Financial Year (India) – Change Current Period

Easily and quickly close the books of accounts of a financial year, and  move your company data to the next financial year. You can achieve this in multiple ways in TallyPrime. Handling your tax liability or input credit when company data is split at the beginning of new financial year is also simplified in TallyPrime.

Change Current Period

To move your data to the new financial year, change the current period to:

  • Continue the voucher entry in the same company data.
  • Carry forward all ledger balances without creating a new company.
  • Compare the reports from different financial years.

To change the current period

  • Go to Gateway of Tally > Press Alt+F2 (F2: Period) and enter the dates.

    The Current Period appears as shown below:

When the Current Period is changed, the balances from the previous financial year are carried forward. You will retain the Financial year beginning from and Books beginning from dates in the Company Alteration screen.

 In some countries the financial period starts from 1st Jan and ends on 31st Dec. You can enter 1-Jan with respective year in the From field and 31-Dec in the To field while changing current period in such countries.

To record the GST transactions from 1st April 2020, you can restart the voucher numbering with unique voucher numbers for all your voucher types. You can refer the GST FAQ to know more about the following:

Ascertain GST liability and GST input credit from GSTR-1 and GSTR-3B. Find out GST Liability and GST Input Credit in your e-ledgers on the GST portal and compare it with your books. Also, you can record the journal voucher for adjustments against input tax credit.

Other Methods of Moving to New Financial Year

You can also do one of the following to move your data to the new financial year:

When you move your data from lower releases to the current release in the new financial year:

The VAT rates are migrated and updated in the stock item masters (Release 4.x or 5.x to current release). You need to configure GST rates and map the unit of measure to UQC in the current year.

The GST rates and mapping of unit of measure to UQC are carried forward to the new year (Release 6.0 to current release).

If you split the data, you can update the tax references.

Split Company Data

When you split the data, the original data is retained, and two new companies with unique names and dates are created. You can rename the split company as required, and save the original data in another location.

Before splitting the data:

  • Ensure the analysis or audits of the books of the previous financial year are complete.
  • Adjust all the unadjusted forex gains/loss displayed on the balance sheet for multi-currency transactions.
  • Check the profit and loss account or inventory statements for pending purchase and sales bills, and adjust them to the respective accounts.

To split and move the data to the new financial year:

To verify the company data

  1. Go to Gateway of Tally > press Alt+Y (Y: Data) > Split > Verify Data.
  2. Select the required company.
  3. Press Enter to view the Possible Errors screen.
  4. Rectify the errors before you proceed to split the data.

To split the company data

  1. Go to Gateway of Tally > press Alt+Y (Y: Data) > Split > Verify Data
  2. Select the required company for which the data has to be split.
  3. Enter or retain the Split from date.
  4. Press Enter to split the data. Data will split into two periods.

The synchronisation rules are carried forward in the split data, in both the server and client. The new company name is automatically updated in the Client Rule. If you have renamed the split company, update the same in the Client Rule on the server.

To update tax references

If you are splitting data having transactions of two or more years, with taxation transactions of pre-GST regime, the tax references are not carried forward in the split data. You need to record the transactions for the following:

TDS: Fourth quarter TDS payment transaction

Create New Company and Import the Opening Balances

If you have created a new company, export the closing balances of the ledgers and stock items of the old company, and import them as opening balances into the new company. You can also import the audited closing balance of the previous year, as the opening balance into the current year.

To export closing balances from old company

  1. Go to Gateway of Tally > Chart of Accounts > Ledgers > E: Export > Current.
  2. Click Configure.
  3. Select the File Format as XML (Data Interchange) and provide details as shown below:

  4. Press Esc to close the configuration and return.

  5. Press Enter to export the data.

To import closing balances as opening balances in new company

  1. Go to Gateway of Tally > O: Import Data > Masters.
  2. Enter the location of the file in the File Path field.
  3. Enter name of the file containing master data in the File to import (XML) field.
  4. Select the required option for Behaviour of import if master already exists.

  5. Press Enter to import.

Create New Books of Accounts

You can create a new company and start recording the transactions without any opening balances for the ledgers.

To create new books of accounts

  1. Go to Gateway of Tally> press Alt+K (K: Company) > Create.
  2. Enter 1-4-2020 as the Financial year beginning from date. The same date appears in the Books beginning from field.

  3. Create the masters and record transactions.
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