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Navigating to 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 open '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 Financial Transactions that have been created within the time frame of the open period and if you wish, you can 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 the Accounting Period Posting process.

In addition a utility, to identify erroneous data (financial transactions and accounts receivable) and correct them, is available and it can be executed before the closing period process as if any errors are found during the actual closing the process will not proceed. 

The Accounting Period is also responsible for Accounts Receivable Balance calculation as the closing of an Accounting Period will calculate the accountA 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.

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

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Validations & Restrictions Table

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Attributes Table

 An * indicates a field is mandatory

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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, because only posted transactions will be taken into consideration, and once must be posted before it closes, or will not be considered.

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

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Correcting data before closing an Accounting Period 

Once all the transactions to be included in the period are posted you can  then perform a check on the correctness of the financial transactions and accounts receivable, , the Financial Transactions and Accounts Receivable which will be taken into consideration considered by the closing Closing process can be checked. This is achieved by the Accounting done through the Accounting Period's Closing Validation Process which 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.

It is not mandatory to execute the process the Accounting Period's Closing Validation Process before closing a period, however, on closing the period . However, if any errors are identified , while closing the period the system will not be able to proceed unless Accounting Period's Closing Validation 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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Accounting Period's Closing Validation Process

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Closing an Accounting Period 

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

1. Navigate to the 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
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   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 the process is submitted to the scheduler it will start running at the scheduled time
   1. on Submit.  Once submitted, the process will run as scheduled. 
4. When the process is completed:
   1. Accounting The Accounting Period Totals tab  tab is populated with the respective figures
   2. The Current Period is closed
   3. The period is copied on all Financial Transactions posted within this period
   4. A New Period is created
   5. The opening balance Balance of all Accounts Receivable is calculated