Each company's financial year is divided into a defined number of accounting periods for auditing and reporting purposes. When a new FinancialForce document is created, its accounting period is calculated from the document date, or by default the period that contains the date of input. The transaction
A record created when documents are posted to the general ledger. Transactions must balance (sum to zero) in home, dual, and document currency. generated when the document is posted to the general ledgerCentral repository for all your business transactions. Each transaction is posted to a general ledger account. inherits its period setting.
An example financial calendar (12 trading periods of 4-4-5 weeks) may look like this:
| Period | Description | Weeks | Group |
|---|---|---|---|
| 000 | Opening | ||
| 001 | Trading Periods | 4 | Q1 |
| 002 | 4 | ||
| 003 | 5 | ||
| 004 | 4 | Q2 | |
| 005 | 4 | ||
| 006 | 5 | ||
| 007 | 4 | Q3 | |
| 008 | 4 | ||
| 009 | 5 | ||
| 010 | 4 | Q4 | |
| 011 | 4 | ||
| 012 | 5 | ||
| 100 | Adjustment Period | ||
| 101 | Closing | ||
Notes
- If you plan to use FinancialForce Reporting or share data with other accounting applications, we strongly recommend that you use a year and period format of YYYY/PPP.
- Be careful when naming years. Generated period identifiers are automatically named Year Name/Period Number. So, avoid using special characters like / in your year name.
- You must have at least one trading period and can have up to 90.
- Each company can have a different number of periods and a different period calculation basisDefines the interval between end dates when you split a financial year into periods.
- You must create years in chronological order and calculate each year's periods before creating subsequent years.
- Years cannot overlap or have a gap between them.
- Periods cannot overlap or have gaps between them.
Open/Closed Periods
A period can be marked as open or closed to particular GLA groups (Accounts Receivable, Accounts Payable, Cash) or can be marked as Final Close which closes it to all GLAs. By assigning general ledger accounts to a particular GLA group, you could choose to close a period for your accounts payable (for example) but leave it open for your accounts receivable. If you do not want to use GLA groups, a period will be open to all general ledger accounts until you select its Final Close checkbox.
- You cannot save a document to a closed periodAn accounting period to which users cannot save documents or post transactions. A period can be closed to individual GLA groups, or can be marked as Final Close which closes it to all GLAs. (unless the period is only closed to certain GLA groups). For example, you cannot post a sales invoice that will create income scheduleUsed to spread the income (revenue) from a sales invoice across a range of accounting periods. journals for a closed period.
- You cannot post a document that would create a transaction for a closed period (unless the period is only closed to certain GLA groups). All postings are affected, including posting cash matching and payments journals.
- Once the Final Close checkbox is selected for a period, that period is closed for all general ledger accounts, all document types and all users.
- Closing a period, or opening it again, is a manual process.
- There are no restrictions on which periods can be closed and which can remain open.
The Years tab displays a home page that lets you quickly create and locate your
financial years and periods. The Periods tab provides an alternative way to maintain period details when you want to open or close multiple periods on a single page. You can also sort and filter your financial years using standard
and custom list viewsGive you instant access to specific sets of data. In addition to using existing views, you can create custom list views for the items most relevant to you.. In addition, this tab lets you view and edit detailed
information on each financial year and period.
The Year and Period objects are both company-owned objects. Each company can have a different financial calendar.