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 Number (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.