Previous Financial Year is not closed

I have closed a financial year with Period Closing Voucher , and prior to that i have also set as defaults next fiscal year in global defaults, so that Profit/Loss can be transferred into new FY as retained earnings .However when i go to ‘Balance Sheet’ it says " Previous Financial Year is not closed" at the bottom. In new FY, Profit & Loss statement data is 0 which is expected. Below piece of code is doing the checking, can anyone tell me specifically what these code are validating? Or what could possibly have gone wrong? Thank you.

# Check if previous year balance sheet closed
opening_balance = 0
if asset:
	opening_balance = flt(asset[0].get("opening_balance", 0))
if liability:
	opening_balance -= flt(liability[0].get("opening_balance", 0))
if equity:
	opening_balance -= flt(asset[0].get("opening_balance", 0))

if opening_balance:
	return _("Previous Financial Year is not closed")

Hi all,

Encountering the same issue! Any feedback on this please? It seems to be a bug unless we’re missing something


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If you are on the latest version please report the issue on GitHub along with screen shots of the error.

Hi All

Using the latest version and still getting the error message. Have reported on GitHub Previous Financial Year is not closed - Message · Issue #7376 · frappe/erpnext · GitHub


Hello all,

The issue on github is closed but i couldn’t understand if the topic is solved or not. I tried using the “Period Closing Voucher” tool to close 2016 as of 31/12/2016. But i see the same warning message “Previous Financial Year is not closed” when i check the balance sheet on 2017.

When i check the global settings, the current fiscal year is 2016.

Could it be a version issue? We are currently using ERPNext: v7.0.48 & Frappe Framework: v7.0.35.

One more issue to remark is an open invoice. I have a sales invoice created on Nov, 2016 which is still open. Could this cause the error? If not, what is the process of ErpNext for the open invoices when we would like to close fiscal year?


@SecA , Yes the issue was resolved and it was not a bug but had to do with which account the Period Closing Voucher (PCV) was placed under.

It was initially placed it under the Equity Account, but because the year closing figure was negative it showed the error.

When the PCV was placed under the liabilities account as specified in here the message no longer displayed.


@saidsl Thank you for your reply.

I have also booked against an equity account considering the net balance in my case is positive at the end of Dec, 2016. I am not an accountant and trying to figure out the best way or let’s say the way it is supposed to be.

Booking a liability account won’t work for my case. At the moment i just can not close the year for some reason. Any advice?

P.S: i have an open sales invoice as mentioned in my first message. Could this cause the problem?

edit: We don’t want to update all the time because we have many customisations. Maybe this will be solved by the latest update. I will post once we update.

@SecA, Welcome.

With regards to the open sales invoice, I don’t think that’s an issue.
You mentioned that when you check Global Settings, the fiscal year is 2016, you are supposed create the new fiscal year and set that as the default as it does not happen automatically.

I don’t think it has anything to do with the updates, pretty certain from what we experienced it was more which account the PCV was under. Just to give you an idea the account we created for the PCV had a Parent Account under Liabilities and the Account Type was Equity. Hope this helps


@saidsl I have selected 2017 as the default fiscal year. Also tried your suggestion to create the account under liabilities but still no luck.

I feel like i am missing something, this should be easy but i have checked over and over again. Anyway, once my IT colleague updates ErpNext on our server, i will check again and will post the result.

Thanks for the suggestions.

Thinking there may be a bug here with the first time you create a Period Closing voucher. I received the same error when using an Equity Account. Refreshed and Reloaded but still received the previous financial year not closed error in the balance sheet. Deleted the Voucher, re-entered then all good?? Odd?

The problem continues without any solution and anyone bothered about it I guess! I have ERPNEXT 8.8.1 and issued a fresh PCV and nothing changes as the mesage continues to appear under the balance sheet.

We had the same exactly problem, and the culprit was the “Equity opening” account.

The solution was to make a Journal Entry and Debit the “Equity opening” to the Account that we have choose for Closing Voucher.

I hope that helps.

Looks like this is a bug.
If you do not have any entry in “Equity”, when you check the balance sheet (with Accumulated Values unchecked) it will show “Previous Financial Year is not closed”.

The temporary fix is to add any any entry related to “Equity” to the CURRENT YEAR(for my test, I’m using journal entry"), and the PREVIOUS YEAR of “Equity” will be calculated properly and the error message will be gone.

I think it’s due to this part

out = prepare_data(accounts, balance_must_be, period_list, company_currency)
out = filter_out_zero_value_rows(out, parent_children_map)

in, in which it filtered out all the “Equity” data when it does not find “equity” related entry in CURRENT year (even though it have equity data from previous year and it is needed to calculate whether prev financial year has been closed or not)

I can confirm this issue still exist in
ERPNext: v9.2.24 (v9.x.x)

Frappe Framework: v9.2.25 (v9.x.x)


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