A fiscal year (or financial year) is used in accounting, which varies between companies and for budget purposes. It is also used for financial reporting by businesses and other organizations.
Fiscal End closes a Company’s fiscal year and generates the corresponding accounting entries with the document type of NEW.
As we know, before any accounting operations, the accounting financial years involved must be created and open. This function is therefore used to manage, by company, the status of the financial years. Associated with that particular entry transaction validation screen. You may also get an error as “Incorrect document type” while running the closing process in Sage X3. We can resolve this by following steps.
Step1:
Navigate to: Setup -> Financials -> Accounting Interface -> Accounting code.
- Select Company, make sure there is an account entered for both lines Profit and Loss account.
Step2:
Navigate to: Setup -> Financial -> Document Type
- Check document type ‘NEW’ is created or not. If it’s already created than use that NEW document type in the parameters . If it’s not then create the document type as NEW and its sequence number.
Step3:
Navigate to: Common Data -> G/L Accounting Tables -> General -> Journal Code. Check journal code ‘New’ is created in the system. If not, create the Journal Code as ‘NEW’ and use it in the parameters
Step4:
Navigate to: Setup -> General Parameters -> Parameter values
- Open the screen then select the CPT Accounting option from the left panel.
- Select the FIY parameter from the grid.
- Under this define below parameters with the correct document type (NEW) which we created above.
- GTECLO1 (Year End Journal Type)
- GTEFRW1 (Carry-forward journal type)
Once above all the steps gets done now, run the closing year end process.
Navigate to: Financial -> Closing Processes -> Fiscal Year End
- Enter all the parameters.
- Company
- Leger= Legal
- C/forward document = NEW
- C/forward journal = NEW
- Click on OK button
By doing all above steps, we can solve this error ‘incorrect document type’.