Overview:
At the beginning of each fiscal year, the Accounting Manager will be responsible for setting up the accounting periods for the upcoming year. Accounting periods allow you to define what periods breakdown the fiscal year, and what period end date each period will have. The most common approach is to follow the standard calendar, 12 periods/months, with all period end dates falling on the month end dates. Another option is to implement the 4 - 4 - 5 accounting calendar. In this case, the first two periods of every quarter is a 4 week period, the third and final period within the quarter is a 5 week period.
Benefits:
- Provides flexibility in setting period end dates for all accounting periods within a fiscal year
- By not setting up accounting periods, no transactions can be posted into that fiscal year. This is a safe guard to prevent transactions from getting posted in fiscal years that are not open/available.
Roles:
- Accounting Manager
- CFO
Location:
- Financial & Accounting > Setup > Organization Units > Accounting Periods
Video: