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Accounting Periods

The Accounting period is the time for which accounts are prepared. Accounting periods will be divided into 12 monthly units for the next fiscal year.  If "Include Adjustment Period" is selected, a 13th period will be created beginning and ending on the last day of the fiscal year.  Year End Adjustments must be made to the 12th period, not the 13th since posting to the 13th period is not allowed. (See Tips & Facts Volume 2, Issue 8 for step-by-step instructions on year end procedures.)  Accounting periods can be set up as far into the future as needed.

Use the Search Filter to search for specific accounting periods which have been entered.

To Add Periods for the Next Fiscal Year

  1. On the Primary menu, click Organization.
  2. Click the Accounting tab.
  3. Click the Setup tab and then click the Accounting Periods tab.
  4. Click Add Period.  
Editing Account Periods

Account period dates can only be edited at the Org level.  However, once an Org Setup is saved as "complete" account period dates cannot be changed.  Beginning and ending dates must be in chronological order and cannot overlap, with the exception of the adjustment period.

Note:  The adjustment period's beginning and ending dates will always be the last day of the last period.

To Edit a Period

  1. On the Primary menu, click Organization.
  2. Click the Accounting tab.
  3. Click the Setup tab and then click the Accounting Periods tab.
  4. Select the period you wish to edit and click the Details icon.

  1. Edit the account period as needed and click Update.
Locking and Closing Periods

When a period has been locked, it can no longer be posted to without appropriate security access.  Locked periods can also be unlocked at anytime (with appropriate security) to make adjustments to the period.

To Grant Locked Period Posting Access

  1. On the Utility menu, click Setup.
  2. In the Setup Console, click Security Administration.
  3. Select the User Rights Templates tab.
  4. In the Entity Types drop-down, select Client. In the User Template Types box, select Standard Client Rights.
  5. Click the Edit link.
  6. In the Security Wizard scroll down and select Transactions from the list.
  7. In the Rights area, select all "Post Locked" check boxes that will have access granted to.
  8. Click Save and Close.

Closed

When a period is closed it cannot be reopened.  Be sure that all adjustments to the period have been made prior to putting it in a closed status.

Periods must be closed in chronological order.  If you attempt to close a period out of order, you will be prompted to close any subordinate periods before closing the current period.

Year-end Adjustments

Year-end is when an organization's fiscal year comes to an end.  Typically, it is the last day of the last month of their fiscal year.  The system's year-end entries must “0” each level income and expense accounts.  This creates an offsetting entry to retained earnings by book level.  That increase or decrease to retained earnings will appear in the first month of the next fiscal year.

At any given time of the current year, this process will always look at whatever the total income and expense balances are as of that moment to make entries.  The “Year end Adjustment” process should not be cumulative.  In other words, if I click “Year End Adjustment” on August 15 just to see retained earnings values for the next fiscal year, the system should not be creating a posted entry per se.  It should consider the year-to-date values every time and not hold any previous “Year End Adjustment” entries.  Retained earnings in the next fiscal year should simply reflect “0” totals from the previous year for income and expense with the appropriate retained earnings accounts updated by an offsetting amount.

Other year end processing done by an organization generally involves working with an accountant to produce adjusting entries for the year.  This typically occurs several months after the end of the fiscal year.  Locking and unlocking the fiscal periods will facilitate moving forward with year end entries generated for the fiscal year without having to close the month.

Once year-end entries are completed and the final postings validated, the last month of the fiscal year can be closed.  Final year end adjustments should be generated prior to closing the last month of the fiscal year as well as the adjustment period.  Nexsure handles each book level calculations separately.  Org level year-end pertains to entries unique to org.  Trial balance summary by general ledger number enables easy view of total balance retained earnings.

Sample of year-end balances with adjusting entries and beginning balances