Accounting Periods are the fundamental data element that captures accounting transactions in the dimension of time. When you install Accounting Seed, Accounting Periods for three calendar months back and twelve calendar months forward are automatically set up for you. These can be deleted if you are not using a traditional calendar year.
The format for an Accounting Period Name must be YYYY-MM. The month value must be between 01-12. Every calendar day in a fiscal year must be a part of one, and only one, Accounting Period, meaning there can be no gap in days between a prior period’s End Date and the next period’s Start Date.Fiscal Calendars
- Traditional Calendar Year
- Fiscal Years
- 4-4-5 Fiscal Calendar
- It creates opening balances for the next Accounting Period.
- It updates current year-to-date income in the current period.
- It locks the transactions belonging to that period from any changes. Periods can be reopened as needed.
- If elected, it also updates AR and AP Aging records.
Set up an Accounting Period
- Navigate to Accounting Home and click the Setup tab. Then, under the Ledger menu, click Accounting Periods.
- Click New.
- Enter the Accounting Period Name, Start Date, and End Date. The status automatically displays as Open.
Note: Remember that the format for an Accounting Period Name must be YYYY-MM. The month must be a value between 01-12. For example, 2022-05 represents the 5th Accounting Period in the 2022 fiscal year.
- Click Save.