What happens when I close an accounting period?

After you post all the journal entries for a period, you must close the accounting period for each ledger company. Run Ledger Period Closing (ML199) to close an accounting period. This program:

• Creates automatic reversing journal entries

• Labels the period as Limited Close or Final Close

• Increments the current period number by one

• Changes the status of the header record for processed journal entries from Posted to Historical

  You can close a period with a Limited Close or Final Close status. Closing a period with a Limited Close status allows future backposting. Closing a period with a Final Close status prohibits future backposting. You can have up to two years open for backposting and up to one year open for posting at one time.