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Managing Accounting Periods

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AVAILABLE FROM CRM.COM R10.0.0

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Navigating to Accounting Periods

 FINANCE APPLICATION > ACCOUNTS RECEIVABLE > MANAGE ACCOUNTING PERIODS

Using Accounting Periods

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

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

The Accounting Period is also responsible for Accounts Receivable Balance calculation as the closing of an Accounting Period will calculate the account's Opening Balance which is used in the balance calculation. 


SCREENSHOT

Accounting Periods Validations & Restrictions

 

ActionRestrictionsValidationsAdditional Information
Create
  •  Mandatory Configuration Entities must be configured before you start using Accounting Periods.Check out Accounting Periods - Configuration Requirements
  •  
  • 1st Accounting Period is created on setting up the Accounting Period Settings
  • Rest Accounting Periods are created sequentially on closing the current Accounting Period
Close
  •  You can only close Open Accounting Periods
  • Validate that  Accounting Period Settings  are defined
    • In cases in which no Accounting Period Settings exist, then the process cannot be initiated.
  • Validate existing Accounting Periods
    • There is at least one Accounting Period registered in the system and it is in open life cycle state. The process cannot be performed for already closed accounting periods.
    • The open Accounting Period's end date is in the past compared to the process run's performed date.
  • The process will be executed by the scheduler but it can only be executed directly or scheduled for the future. It cannot be scheduled to be executed repeatedly
  • Terminated accounts receivable will also be considered during the process run too but only as long as posted financial transactions were submitted against these accounts receivable and the financial transactions are not yet related to any Accounting Period. This means that these financial transactions might had been submitted against the accounts receivable prior its termination but the financial transactions will still have to be related to an accounting period.
  • Error Log is available to keep all the Accounts Receivable or Financial Transactions that could not be processed
Modify
  • You cannot modify an Accounting Period
  
Open
  • You cannot reopen a Closed Accounting Period
  
Delete
  • You cannot delete an Accounting Period
  

 

Accounting Periods Attributes

Fields followed by an * means that they are mandatory

Name

Description

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

The Accounting Period's life cycle state

  • Open
  • Closed
Closed dateThe date on which the accounting period was closed. This information is available only if the accounting period's life cycle state is set to Closed
Closed by Accounting PeriodThe Accounting Period which follows this Accounting Period. This information is mandatory only as long as this accounting period is in Closed life cycle state
Period closing performed by userThe User who initiated the Accounting Period Closing process that triggered this Accounting Period to be updated into Closed life cycle state.
This information is available only if the accounting period's life cycle state is set to Closed
Log Information

Includes the standard log information

Accounting Period Closing Error LogsA list of accounts 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 with posting date within the Accounting Period's time frame, but these financial transactions are not related to the Accounting Period.

Pre-Checks on Closing an Accounting Period 

Before you execute the Closing period you have the option to find all Financial Transactions that have been created within the current period but have not yet been posted. Once these Financial Transactions are retrieved you can select which of them you would like to post and do so, before Closing the current Accounting Period. 

The process is available through the current/open Accounting Period screen and once executed 

Closing an Accounting Period

On the closing of an Accounting Period the following actions are taken

  • Current Period is closed
    • The period is copied on all Financial Transactions posted within this period 
  • The New Period is created
    • The opening balance of all Accounts Receivable is calculated

 

 

 

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

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