After you create the new closing period, you now have the original period and the closing period. You enter a name for the closing period, such as Close. For example, you select Period 12, which is the last period in the fiscal year, and that has dates of August 1 through August 31. The original period will continue to exist. The new closing period will copy the starting and ending dates from the existing period. When you create a closing period, select a period that has a status of Open and that has the dates that you want to use. However, a closing period can be created from any period that has a status of Open. If a fiscal year is divided into 12 fiscal periods, the closing period is usually the 13th period. When the closing transactions are in one fiscal period, it is easier to create financial statements that either include or exclude different types of closing entries. You can also divide existing periods and create closing periods that can be used to close a fiscal year.Ī closing period is used to separate general ledger transactions that are generated when a fiscal year is closed. You can create and delete fiscal calendars, fiscal years, and periods on the Fiscal calendars page. Create fiscal calendars, fiscal years, and periods You can create one fiscal calendar for the five legal entities that share the same fiscal calendar, and then create separate fiscal calendars for the other legal entities. ![]() Five of them share the same fiscal calendar and three use different fiscal calendars. For example, an organization has eight departments and each department is a separate legal entity. ![]() Each fiscal calendar is independent of your organization, and can be used by multiple legal entities in the organization. There is no limit to the number of fiscal calendars that you can create, and no limit to the number of fiscal years that can be created for a fiscal calendar. For example, some organizations select a fiscal calendar that starts on July 1 of one year and ends on June 30 of the following year. Fiscal calendars can be based on a January 1 to December 31 calendar year, or on any dates that you select. Each fiscal calendar contains one or more fiscal years, and each fiscal year contains multiple periods. This article discusses fiscal calendars, fiscal years and periods and how to utilize them for legal entities, fixed assets and budgeting.įiscal calendars provide a framework for the financial activity of an organization.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |