Using periods

Financial period types

Three financial periods exist:

Fiscal
The official accounting periods that comply with the fiscal requirements. You enter all financial transactions according to this fiscal period allocation. The Fiscal period type shows which transactions have been created during a particular period. To define Fiscal periods is mandatory.
Reporting
A division of the financial year, other than by fiscal periods. You can use the reporting periods for reporting from the ledger and for financial statements. Reporting periods can only be defined if the Reporting Periods check box in the Group Company Parameters (tfgld0101s000) session is selected. To define reporting periods is optional.
Tax
Financial periods that you can use to account the tax amounts of financial transactions. You must define the tax periods in which the tax amounts of the financial transactions must be accounted for in the tax analysis. To define Tax periods is optional.

Example

A company is included in a holding structure as of 1 January. This company has defined periods of four weeks as fiscal periods. The tax authorities require the tax amounts to be settled monthly. In contrast, the holding company uses periods of three weeks as reporting periods. This is defined as follows:

Fiscal Period	Start Date	Reporting Period	Start Date	Tax Period	Start Date
1	01-01	1	01-01	1	01-01
2	29-01	2	22-01	2	01-02
3	25-02	3	12-02	3	01-03
4	25-03	4	05-03	4	01-04
5	22-04	5	26-03	5	01-05
6	20-05	6	17-04	6	01-06
7	17-06	7	08-05	7	01-07
8	15-07	8	29-05	8	01-08
9	12-08	9	20-06	9	01-09
10	09-09	10	11-07	10	01-10
11	07-10	11	01-08	11	01-11
12	04-11	12	22-08	12	01-12
13	02-12	13	12-09
		14	03-10
		15	24-10
		16	14-11
		17	05-12
		18	26-12

If a transaction takes place on 26 June, it must be included in:

Financial period 7, for the company itself.
Reporting period 9, for the parent company.
Tax period 6, for the tax authorities.

Financial period statuses

Financial periods can have these statuses:

Open
You can enter transactions for this period.
Closed
The period is closed, but you can still change the period status to Open to create some final transactions in the period.
Finally Closed
The period has been closed through the Close Periods (tfgld1206m000) session. You cannot enter any transactions anymore for the period. The Finally Closed status can be assigned to a period only if the previous periods have the Finally Closed status. You cannot change the status of a period that has the Finally Closed status.

In the Period Status (tfgld0107m000) session, you can view and change the status of each period type.

The periods can be set to Open, Closed, and Finally Closed separately for these types of transactions:

ACP: Accounts Payable transactions

ACR: Accounts Receivable transactions

CMG: Cash Management transactions

INT: Integration transactions logging

GLD: General Ledger transactions

Setting up financial periods

To set up financial periods:

In the Group Company Parameters (tfgld0101s000) session, define these period parameters:
- Reporting Periods
- Number of Fiscal Periods
- Number of Reporting Periods
- Number of Tax Periods
- Period Separator
In the Periods (tfgld0105m000) session, define the periods. You can specify:
- A financial period that you use to post corrections.
- The period's start date.
In the End Dates by Fiscal Year (tfgld0106s000) session, set the end dates for the last period of a fiscal year.
In the Period Status (tfgld0107m000) session, set the required period status for each period.

Closing financial periods

To close a financial period:

Indicate the year for which you want to close a period.
Select the module for which you want to close a period.
Select the Final Closing check box to set the period status to Finally Closed.
Specify a range of financial companies.
Select the appropriate check boxes to specify the periods you want to close.
Click the Close periods button.
Before you can close the periods for the General Ledger, you must close the periods for these modules:
- Accounts Payable
- Accounts Receivable
- Cash Management

Note

You can only specify reporting period types and period ranges if the Reporting Periods check box in the Group Company Parameters (tfgld0501m000) session is selected.
If the period for integration is closed, no more new transactions can be inserted in the integration tables for the closed period.
Before you run this session, you must close all the batches for the relevant periods in the Finalization Run Numbers (tfgld1609m000) session.

Closed periods

You cannot create transactions in a closed period. However, a period with the status Closed can be reopened in the Period Status (tfgld0107m000) session.

You cannot reopen a period that has the status Finally Closed.

Important!

Periods can only be finally closed when all the recurring invoices are posted.