In short: What is cross year reconciliation?
Cross year reconciliation allows you to reconcile accounts across financial years. Open items can be carried forward until they are actually settled, instead of being “closed” at year-end.
This is particularly useful for accounts where settlements often span multiple years, such as:
Accounts receivable.
Accounts payable.
Intercompany or related-party accounts.
You may want to avoid cross year reconciliation if:
Each financial year should be fully closed and reconciled independently.
The account normally does not have open items across year-end.
💡 Cross year reconciliation is configured per account and is only available for accounts using the General ledger template.
Step by step: Enable cross year reconciliation
1. Go to the account page
Go to Accounts in the menu on the left.
Open the account you want to enable cross year reconciliation for.
2. Turn on cross year reconciliation
Use the toggle at the top of the account page to enable Cross year reconciliation.
The year you are currently viewing when enabling the function becomes the account’s start year.
💡 The start year determines which historical items can be carried forward. Items dated before the start year are not included in cross year reconciliation.
Important about opening balance, closing balance, and start date
When an account is set up with cross year reconciliation, the way the system handles opening and closing balances changes.
If the opening balance should be included in the reconciliation, the following conditions must be met:
Cross year reconciliation is enabled for the account.
The reconciliation start date must be set to the same year as the opening balance applies to.
If the start date is set to a later year:
The closing balance from the previous year will be excluded.
Reconciliation will be based only on transactions across years, not on balances carried forward from earlier years.
This may result in:
Opening balance entries not appearing in matching.
Discrepancies in the closing balance, even if earlier periods were reconciled without issues.
The start date is changed under Company settings. This guide explains how to update the reconciliation start date.
⚠️ Note
Changing the start date affects how historical items are interpreted in the reconciliation. Be especially careful if the account has already been partially reconciled.