Closing the books prohibits transactions dated prior to a specific "close date" from being changed. Some accountants or bookkeepers close books after an accounting period has ended for tax prep or board reporting reasons. This will help to ensure that financials match tax returns and that last year's financials don't change from one board meeting to another.
Closing the books locks down transactions in Novi
Functionality will be limited - this is by design.
Transactions dated prior to the closed books date can't be changed.
Invoices cannot be marked as printed.
Dues invoices cannot be recalculated.
If you attempt to edit one of these transactions, you will receive a friendly error reminding you: "Your QuickBooks file has a closing date that is preventing this invoice from being recalculated. Please contact your QuickBooks administrator."
Changing transactions prior to a "close" date
While your accountant or QuickBooks administrator may be able to make changes to transactions in prior periods within QuickBooks, they generally will try to avoid it. Should they choose to make a change to a transaction dated prior to a close date, their changes will be automatically synced to Novi.
The fix for this will need to happen in QuickBooks Online - be sure to consult with your association's bookkeeper to determine which option makes the most sense for your bookkeeping.
When does this affect my work in Novi?
Recalculating a Dues Invoice
Error Message in Novi: "Your QuickBooks file has a closing date that is preventing this invoice from being recalculated."
Next Step: To resolve the issue, we recommend looping in your accounting team to temporarily open up the accounting period. Then you can recalculate the invoice in Novi before closing the books again.
Merging Records
Error Message in Novi: "Your QuickBooks file has a closing date that is preventing these records from being merged."
Next Step: To resolve the issue, we recommend looping in your accounting team to temporarily open up the accounting period. Then you can merge the records in Novi before closing the books again.
What will my members see?
Members will also see an error when trying to remove line items connected to a closed period and will need to contact admins to take action.
More Information
For more information and a guide on how to close the books, visit QuickBooks Online's help center.
Learn more about how to edit your closed books.
"Closing the Books is like closing the door – You’re saying I’m finished in that room and have moved on." - Liz Scott, Insightful Accountant