Cycle/period relationship

In the context of Franchise Billing, it is important to understand the relationship between a period and a cycle. Think of a cycle as being the smallest period of time over which you bill a franchise. For example, you can charge a royalty fee on a weekly basis. A period is associated with your general ledger. For example, you can bill on a weekly basis but accrue for estimated sales on a monthly basis. Period end involves running two batch programs to update the general ledger with estimated sales accruals and actual sales for the period.

Period end involves creating estimate accrual entries and closing the current period to update the general ledger period recognition for franchise billing.

Run Accrual Close to post auto-reversing entries to Global Ledger for the open estimates and call-in accruals for the cycle date. The accrual transactions are created for the period before and including the cycle date specified in the Post Through Date field. Use Accrual Close to debit the accrual account for a specific charge and credit the accrual offset account for the charge.