About closing a cycle

Closing refers to the end of the business cycle or year-end. No files or records are set to a closed status. During cycle closing, the Franchise Management application posts auto-reversing accrual amounts to the general ledger for estimates and call-in estimates, and posts prepayments to the note asset account.

At year-end, you must change your definitions for current, next, and previous fiscal years both in the company calendar and in your company options.

Cycle/Period relationship

In the context of the Franchise Management application, 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 may charge a royalty fee on a weekly basis. A period is associated with your general ledger. For example, you may 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.