Time Periods - Revision history

Sichen: /* Closing a Time Period */

2011-11-03T21:38:25Z

‎Closing a Time Period

Sichen: /* Closing a Time Period */

2011-11-03T21:01:57Z

‎Closing a Time Period

Sichen: /* Closing a Time Period */

2011-11-03T20:59:44Z

‎Closing a Time Period

Sichen: /* Re-open a Closed Time Period? */

2011-11-03T19:05:16Z

‎Re-open a Closed Time Period?

Sichen: /* Closing a Time Period */

2011-11-03T19:04:29Z

‎Closing a Time Period

Claudefeistel2 at 21:14, 9 September 2010

2010-09-09T21:14:52Z

Claudefeistel2 at 15:23, 26 August 2010

2010-08-26T15:23:52Z

Sichen at 17:36, 19 August 2010

2010-08-19T17:36:55Z

Sichen at 00:06, 11 June 2010

2010-06-11T00:06:55Z

Claudefeistel2 at 16:20, 22 December 2009

2009-12-22T16:20:55Z

@@ Line 57: / Line 57: @@
 # The <tt>GlAccountHistory</tt> entities are updated for the time period with the final amounts.  This is used to obtain the balances for reporting.
 # The time period is marked closed.
 To be able to close a time period, you must configure both a PROFIT_LOSS_ACCOUNT and a RETAINED_EARNINGS account for your organization.  The profit loss account is the one for calculating net income or loss, and no entries will be posted to it.  The retained earnings account is used to carry forward the net revenue and expenses of the time period.

@@ Line 88: / Line 88: @@
 |Total||200||200
 |}
 To be able to close a time period, you must configure both a PROFIT_LOSS_ACCOUNT and a RETAINED_EARNINGS account for your organization.  The profit loss account is the one for calculating net income or loss, and no entries will be posted to it.  The retained earnings account is used to carry forward the net revenue and expenses of the time period.

← Older revision		Revision as of 20:59, 3 November 2011
Line 58:		Line 58:
	# The time period is marked closed.		# The time period is marked closed.

		+	For example, if prior to closing a time period, the trial balance shows:
		+	{\|
		+	!Account
		+	!Debits
		+	!Credits
		+	\|-
		+	\|Asset\|\|100\|\|0
		+	\|-
		+	\|Liability
		+	\|0
		+	\|60
		+	\|-
		+	\|Equity
		+	\|0
		+	\|20
		+	\|-
		+	\|Retained Earnings
		+	\|0
		+	\|20
		+	\|-
		+	\|Revenue\|\|0\|\|100
		+	\|-
		+	\|Cost of Goods Sold\|\|50\|\|0
		+	\|-
		+	\|Expenses\|\|40\|\|0
		+	\|-
		+	\|Profit\|\|10\|\|0
		+	\|-
		+	\|Total\|\|200\|\|200
		+	\|}
	To be able to close a time period, you must configure both a PROFIT_LOSS_ACCOUNT and a RETAINED_EARNINGS account for your organization. The profit loss account is the one for calculating net income or loss, and no entries will be posted to it. The retained earnings account is used to carry forward the net revenue and expenses of the time period.		To be able to close a time period, you must configure both a PROFIT_LOSS_ACCOUNT and a RETAINED_EARNINGS account for your organization. The profit loss account is the one for calculating net income or loss, and no entries will be posted to it. The retained earnings account is used to carry forward the net revenue and expenses of the time period.

@@ Line 63: / Line 63: @@
 Once a time period is closed the system will not let you re-open it or post to it. It is best to avoid a premature closing of Time Periods so that there is sufficient time and preparation to make sure that Closing is final.
 Manual pages >> [[Configuring Payroll]]
 Section pages >> [[Facilities Setup: Stores, Warehouses, Shipping]]

@@ Line 47: / Line 47: @@
 ===Closing a Time Period===
-When you close a time period, the system will ask you to close all time periods ending at a certain date, including fiscal months, quarters, and years.  Closing a time period will do the following:
+Once an accounting time period, such as a fiscal year, has been fully reviewed and, if necessary, audited, you can close a time period to "lock" it, so that no changes to past time periods can be made.  This is useful from a control perspective.
-To be able to close a time period, you must configure both a PROFIT_LOSS_ACCOUNT and a RETAINED_EARNINGS account for your organization.  The profit loss account must be a DEBIT side net income account, and the retained earnings account must be a CREDIT side equity account.
+Closing a time period also records the final balances of the time period, so that the financial reports can use these balances instead of tabulating all the results each time they are run.  This makes them run faster when there are
 ==Re-open a Closed Time Period?==

@@ Line 1: / Line 1: @@
-Time periods are used to define the date ranges of fiscal periods for accounting and sales forecasting purposes.  You can have as many time periods as you need, including fiscal years, quarter, month, bi-weeks.  The time periods have beginning and ending dates but not times--all time periods are assumed to begin and end at exactly midnight of its date.  Thus, a fiscal year which spans the calendar year 2007 should begin on 2007-01-01 and end on 2008-01-01.
+==Introduction to Fiscal Accounting Time Periods==
-Time periods control the posting to the past and the future: when a past time period is closed, no transactions can be posted to it.  If a future time period has not been created yet, then no transactions can be posted to it either.   When a future time period is created, it is automatically considered “open” and available for posting.  This can be modified fairly easily if you want to control them further.
+(This discussion applies to the fiscal time periods, and is not necessarily relevant to special types of time periods.)
 When you close a time period, the system will ask you to close all time periods ending at a certain date, including fiscal months, quarters, and years.  Closing a time period will do the following:
 # A net income will be calculated since the previous closed period of the same type (i.e., since the previous close fiscal quarter, if we are closing a fiscal quarter, since the previous close fiscal year if we are closing a fiscal year.)  This net income will be DEBIT to the Profit and Loss account and CREDIT to the Retained Earnings account, unless this net income has already been posted to this time period. (This could happen if we're closing out a period with sub-periods which have already been closed, such as a quarter with months that have already been closed.)
@@ Line 12: / Line 56: @@
-===Re-open a Closed Time Period?===
+==Re-open a Closed Time Period?==
-Once a time period is closed the system will not let you re-open it or post to it.
+Once a time period is closed the system will not let you re-open it or post to it. It is best to avoid a premature closing of Time Periods so that there is sufficient time and preparation to make sure that Closing is final.
 Manual pages >> [[Configuring Payroll]]
 Section pages >> [[Facilities Setup: Stores, Warehouses, Shipping]]

← Older revision		Revision as of 16:20, 22 December 2009
Line 12:		Line 12:

	To be able to close a time period, you must configure both a PROFIT_LOSS_ACCOUNT and a RETAINED_EARNINGS account for your organization. The profit loss account must be a DEBIT side net income account, and the retained earnings account must be a CREDIT side equity account.		To be able to close a time period, you must configure both a PROFIT_LOSS_ACCOUNT and a RETAINED_EARNINGS account for your organization. The profit loss account must be a DEBIT side net income account, and the retained earnings account must be a CREDIT side equity account.
		+
		+
		+	Manual pages >> [[Configuring Payroll]]
		+
		+	Section pages >> [[Facilities Setup: Stores, Warehouses, Shipping]]