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Excerpt
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Find out how to work with Accounting Periods

Status
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titleAvailable from CRM.COM R10.0.0

Back to Accounts Receivable Main Page

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Table of Contents

Table of Contents
minLevel2

Navigating to Accounting Periods

Info
 FINANCE  CONFIGURATION > FINANCE APPLICATION > ACCOUNTS RECEIVABLE ACCOUNTING PERIODS > MANAGE ACCOUNTING PERIODS

Using Accounting Periods

An Accounting Period is defined as the time frame in which financial transactions Financial Transactions are posted. An accounting period Accounting Period in CRM.COM can cover either a month or a year , (according to how it is set up in in Accounting Period Settings) and it can be either open or closed, but 'Open' or 'Closed'.  However, only one Accounting Period can be opened 'Open' at a time and it will always be the latest one. 

The first Accounting Period is automatically created by the system on setting up on specifying Accounting Period Settings while the rest of the .   The following Accounting Periods are created once the current accounting period Accounting Period is closed (via via Closing Period process). Once an Accounting Period is closed it cannot be reopened and thus no and no more Financial Transactions can be posted against that periodit, because as Financial Transactions can only be posted against open/current Accounting 'Open' Accounting Periods and they can only be related with to a single Accounting Period. 

Before closing the period  a Period, you have the option to find all financial transactions aThe Accounting Period is also responsible for Accounts Receivable Balance calculation as the closing of an Accounting Period will calculate the accountFinancial Transactions that have been created during the 'Open' period and have them posted so that they will be included in the period you are about to close. This is done via the Accounting Period Posting process.

A utility is available to identify and correct incorrect data, such as Financial Transactions with wrong Periods. It is recommended to execute the utility before closing the Period as any errors found while closing will interrupt the process.

Tip

In case the closing period is interrupted, you can use the Correction process (i.e. if for any reason the scheduler, responsible for executing the process is is stopped, and there are still open transactions, use the Correction Process)

The closing of an Accounting Period will also trigger the calculation of the account's Opening Balance which is used in the balance calculation.  

ACCOUNTING PERIODSImage Added

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validations

Accounting Periods Validations

Validations & Restrictions Table

 

Action
Restrictions
Validations
Additional Information
Create
  •  Mandatory Configuration Entities Mandatory Configurations must be configured performed before you start using Accounting Periods. Check out Accounting Periods - Configuration Requirementsout Accounting Period Settings.
  • Not Applicable

 

Close
  •  You can only close Open Accounting Periods
  • Validate that  Accounting Period Settings  are   are defined
  • In cases in which no Accounting Period Settings If Accounting Periods already exist, then the process cannot be initiated.Validate existing Accounting Periods
    • There is must be at least one Accounting Period registered in the system and it is in open life cycle state'Open' Life Cycle State. The process cannot be performed for already closed accounting periodsAccounting Periods.
    • The open Accounting Period's end date is in the past compared to before the process run's performed dateperformed date.
  • The Closing process will be executed by the scheduler but it can only be executed directly or the scheduler and will either take place right away or be scheduled for the future. It , but it cannot be scheduled to be executed repeatedly.
  • 'Terminated accounts receivable will ' Accounts Receivables will also be considered during the process run too but only closing, as long as posted financial transactions Financial Transactions were submitted against these accounts receivable and the financial transactions Accounts Receivables and are not yet related to any Accounting Period.This means that these financial transactions might had  
    The Financial Transactions in question might have been submitted against the accounts receivable Accounts Receivable prior to its termination but the financial transactions will still have to be related to an accounting periodAccounting Period.
  • Error Log An Error Log is available to keep register all the Accounts Receivable Receivables or Financial Transactions that could not be processed.
Modify
  • You cannot modify an Accounting Period
  
  • Accounting Periods cannot be modified
  • Not Applicable
  • Not Applicable
Open
  • You cannot reopen a Closed Accounting Period
  
  • Periods cannot be re-opened
  • Not Applicable
  • Not Applicable
Delete
  • You cannot delete an Accounting Period
  
  • Accounting Periods cannot be deleted
  • Not Applicable
  • Not Applicable

 

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attributes

Accounting Periods AttributesFields followed by an * means that they are

Attributes Table

 An * indicates a field is mandatory

Name

Description

Main Information
Number  The Accounting Period's number which it consists of the accounting periodAccounting Period's month and year (e.g. 201601 for January 2016 if the accounting period Accounting Period is a monthly one , or 2016 if it is annual).
NameThe Accounting Period's name which it consists of the accounting periodAccounting Period's month and year (e.g. January 2016).
From dateThe first day of the Accounting periodPeriod's month
To dateThe last day of the Accounting periodPeriod's month
Life cycle stateCycle State

The Accounting Period's life cycle state

  • Open
    • Closed

    Life Cycle State. Its two values are:

    • 'Open'
    • 'Closed'
    Closed dateThe date on which the accounting period Accounting Period was closed. This information is , available only if the accounting periodAccounting Period's life cycle state Life Cycle State is set to 'Closed'.
    Closed by Accounting PeriodThe Accounting Period which follows this the current Accounting Period. This information is mandatory only as long as this accounting period is in Closed life cycle state the current Accounting Period's Life Cycle State is set to 'Closed'.
    Period closing performed by user

    The name/number of the User who initiated the Accounting Period Closing process that triggered this Accounting Period

    to be updated into Closed life cycle state.

    's update to a 'Closed' Life Cycle State.

    Note

    This information is available only if the

    accounting period

    Accounting Period's

    life cycle state

    Life Cycle State is set to 'Closed'.

    Accounting Period Totals

    Section with all the related information

    • Total Amount of Debits
    • Total Amount of Credits
    • Total Amount of Period
    • Total Number of Debit Transactions
    • Total Number of Credit Transactions
    • Total Number Of of Financial Transactions
    Period Transactions
    Lists all financial transactions Financial Transactions which were considered during the accounting periodAccounting Period's closing process (i.e. related to the accounting periodAccounting Period) is displayed in read 'Read-only' mode
    Section is only visible for closed 'Closed' periods 
    Financial Transactions
    • Number
    • Reference Number
    • Account Information
    • Type
    • Issue Date
    • Posted Date
    • Total Amount

    Draft Transactions

    Lists all financial transactions still in Draft state and Financial Transactions created during the period's time frame is displayed in read only mode that are still in 'Draft' state, in 'Read-only' mode.

    Section is only visible for open 'Open' periods 

    Financial Transactions
    • Reference Number
    • Account Information
    • Type
    • Life Cycle State
    • Issue Date
    • Posted Date
    • Total Amount
    Accounting Period Closing Error Logs
    Accounting Period Closing Error LogsA list of accounts receivable Αccounts Receivable which were not successfully processed during the Accounting Period Closing process run of the specified Accounting Period.
    This list includes Accounts Receivables which have posted financial transactions Financial Transactions, with posting date within the Accounting Period's time frame , but these financial transactions which are not related to the Accounting Period.
    Log Information
    Log Information

    Includes the standard log informationThe standard set of Log Details information available in all entities  

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    posting

     Posting

    Posting Financial Transactions to include in Current Period

    Before closing a period you will need to ensure that all financial transactions All Financial Transactions that should be included in the period are already posted, as only posted transactions will be taken into consideration, and once must be posted before it closes, or will not be considered.

    Note

    Once the period is closed

    then you will no longer be able to post them

    , transactions against that period

    .Via the Accounting Period screen, of an open period you can find all the related

    can no longer be posted

    Draft Financial Transactions that have been created within the time frame of the a specific period , select the ones you want to include and post themcan be accessed, selected and posted via the Accounting Period view of an 'Open' period.

    1. Navigate to the Accounting Period screen
    2. Search for the 'Open' Period and go to its data entry screen
    3. Go to the Draft Transactions Section
      All the eligible transactions will be available
    4. Select the ones you want to include by placing a check in their related checkboxthe checkbox
    5. Click on Actions > Post from the Actions menu

     OPEN PERIODS DATA ENTRY SCREENImage Added

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    correcting
    Correcting data before closing an Accounting Period 

    The process of performing an Accounting Once the transactions to be included in the period are posted, the Financial Transactions and Accounts Receivable which will be considered by the Closing process can be checked. This is done through the Accounting Period's Closing Validation Process which is responsible for retrieving and fixing erroneous incorrect information that affect an Accounting Period's Closing process. This erroneous incorrect information might be related to either Financial Transactions and/or Accounts Receivable and can be found in the table belowthe table below.

    Note

    It is recommended to skip this step and proceed directly to the Closing of the period. The system will run a check, and if necessary will notify the user to run the Correction step.

    It is not mandatory to execute the process the Accounting Period's Closing Validation Process before closing a period. However, however on closing the period if any errors are identified while closing the period the system will not be able to proceed and you will be requested to execute the Correction process stop until the process is explicitly executed.

    1. Navigate to the Accounting Period screen
    2. Search for the 'Open' Period and go to its data entry screen
    3. Click on Actions > Period Closing Corrections from the Actions menu
      The process will be executed will run and you will be notified once it is completed so that you can proceed to the the closing of the period 

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    validation_tbl
    Accounting Period's Closing Validation Process

    Identified ErrorsCorrections
    • Find all financial transactions Financial Transactions which are:
      • Not Posted and 
      • Have an accounting periodAccounting Period
    • Their accounting period Accounting Period is set to empty
    • Find all financial transactions Financial Transactions which are:
      • Not related to an Accounting period Period and
      • are Posted and 
      • Their have a posting date is before the accounting periodAccounting Period's start date (exclusive)
    • The appropriate accounting period Accounting Period is set on the financial transactionFinancial Transaction
    • The opening balance of the account is recalculated to include the FTs the Financial Transaction's amount 
      • If the financial transaction is a debit, then the accounts receivable balance Financial Transaction is a Debit, the Accounts Receivable Balance is increased by the same amount as the financial transactionFinancial Transaction's total amount
      • If the financial transaction is a credit, then the accounts receivable balance Financial Transaction is a Credit, the Accounts Receivable Balance is decreased by the same amount as the financial transactionFinancial Transaction's total amount
    • Find all financial transactions Financial Transactions which are:
      • Posted and
      • Their have a posting date that does not fall within their related Accounting Period's time frame (including the related accounting periodAccounting Period's start/end date) and
      • Their posting date is before the start date (exclusive) of the accounting period Accounting Period which is being closed
    • The appropriate accounting period Accounting Period is set on the financial transactionFinancial Transaction
    • Find all accounts receivable Accounts Receivable which are:
      • Not related to the accounting period Accounting Period being closed and
      • Have a creation date before the Accounting Period's start date (exclusive) and
      • Have at least one posted financial transaction with a posting date before the accounting period's start date (exclusive) and
    • The opening balance for the accounting period Accounting Period which is about to close is recalculated by using the following formula:
      • (Sum up all posted debit transactions) - (Sum of all posted credit transactions) which were submitted against the accounts receivable Accounts Receivable and have a posting date before the accounting periodAccounting Period's start date (exclusive)
      • Set the opening balance, opening balance calculation date and accounting period Accounting Period on these financial transactionsFinancial Transactions

     

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    closing
    Closing an Accounting Period 

    Given that Financial Transactions and Accounts Receivable are correct then you can proceed with closing the Accounting Period.On

    1. Navigate to the
    closing of an Accounting Period the following actions are taken
    1. Accounting Period screen
    2. Search for the 'Open' Period and go to its data entry screen
    3. Click on Actions > Close Period from the Actions menu
      CLOSE PERIOD ACTIONImage Added
      1. From the modal window select whether you would like to execute the process now or schedule it for some time in the future
      2. Click on Submit.  Once submitted, the process will run as scheduled. 
    4. When the process is completed:
      1. The Accounting Period Totals tab is populated
      2. The Current Period is closed
      3. The period is copied on all Financial Transactions posted within this
    period 
      1. period
    The
      1. A New Period is created
      2. The opening
    balance
      1. Balance of all Accounts Receivable is calculated

     

     

     

    NoteVisit /wiki/spaces/WIP/pages/10010220 for business examples related to Accounting Periods
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