How does closing an open order from a previous year in QB in the current year affect our QB numbers from a closed out year. It is asking for previous year closing password. Will this change the previous years numbers?
In QuickBooks, closing the books lets you set a password for a closed book.
Once you closed the books in your account, you aren't supposed to enter any entry for that fiscal year. But in QuickBooks Desktop, the system will allow you to enter transactions that affect the balance of the fiscal year, but it either tells you that it isn't recommended or ask for a closing date password if you set up one. That's the reason why it asks you to enter the previous year closing password.
If the order in question was open at year-end, it will be carried on your books as a current asset/liability. What is your intent in closing this order? As a general rule, you don't want to make changes to any balance sheet accounts for a closed year. If you've already submitted your year-end financials to your accountant, then reach out to them regarding the proper way to close the order. If not, you can make entries/changes in a closed year by entering the closed year password - this has to be provided by your system admin. Once you've saved the change, the year will automatically lock once you make another entry. If you do this, be sure to run updated year-end financials. I hope this is helpful.