Backposting
Backposting is the process of updating a ledger company for a period that was closed with a Limited Close status and then reopened to allow additional journal processing and posting. Use backposting to create additional entries in a prior period. You can create new entries to correct past entries, to reclassify a previous entry, or to correct a financial statement.
Example
Ledger company LGE is currently in period 3, but has discovered a journal entry for period 2 that was never specified. To specify and process the period 2 entry, LGE's controller must open period 2 for backposting. The controller can perform this procedure because period 2 was closed with a Limited Close status.
The controller opens period 2 for backposting, specifies and posts the journal entry, and runs Ledger Period Closing (ML199) to re-close period 2. If LGE's auditors look at the status of period 2, it displays as L*, indicating that the period was closed but backposting has occurred.
This diagram shows the path of an entry that originates in a subsystem. It is important to determine the correct period to open for backposting. If the correct period is not open, the entry is transferred to the current period.
