Period Accounting

This process is used to distribute revenues and costs between different accounting periods in the general ledger. This occurs by defining a period accounting table used to generate period accounting transactions.

This process is completed when a journal of allocated transactions is created.

Before you start

  • FAM function GL10 (Period accounting) is defined in 'FAM Function. Open' (CRS405).
  • If period accounting is to be aided by a period accounting curve in the table, it must first be created in 'Period Accounting Curve. Open' (CRS450).

Follow these steps

  1. Define Period Accounting Table

    The manner in which period accounting is to occur is defined in a period accounting table in 'Period Accounting Table. Open' (GLS470) or by using the API GLS470MI (AddPeriodAcctng). If an account that is defined as period accounting in 'Accounting Identity. Open' (CRS630) is used when transactions are entered in a manual entry function, then 'Period Accounting Table. Open' (GLS470/E) is automatically called.

    The following information is required to define a table:

    • The period covered by the table
    • The total amount to allocate
    • The base and target accounting string
    • The period accounting method, the method of allocation over the period
    • The period accounting curve (optional).

    The table is then used when creating the accounting transactions included in the predefined allocations. It can be printed in 'Period Accounting Table. Print' (GLS480).

    In order to allocate the outcome after an allocation (by department, for example), an allocation must be run in 'A/C Allocation. Update' (GLS130).

  2. Create Period Accounting Proposal

    Period Accounting proposals are created manually for each period in 'Period Accounting. Update' (GLS140). A proposal for the accounting transactions to be generated for the chosen period is created according to the definitions in the period accounting table. These are not updated.

    If the proposal is not correct, you can adjust the period accounting table and create a new proposal.

  3. Carry Out Period Accounting

    When a period accounting proposal can be approved, specify in 'Period Accounting. Update' (GLS140) that the general ledger is to be updated. An accounting journal containing the generated accounting transactions is printed.

    Several runs of period accounting can be made for the same period. Only transactions that were made after the last period accounting run will be included.

Description

In this example, USD 50,000 in rent in the Prepaid account will be allocated over five periods, 20% per period to the Rent account.

Period Accounting Starting-point

Period 0001-0005
Amount to allocate 50 000
Source accounting string Prepaid costs
Target accounting string Rent
Period accounting method 0001 10 000 20%
0002 10 000 20%
0003 10 000 20%
0004 10 000 20%
0005 10 000 20%

Results for the First Period Accounting Run:

Period 0001
Accounting String Amount
Prepaid costs 10 000 Credit
Rent 10 000 Debit

'A/C Allocation. Update' (GLS130) is then used to distribute period accounting transactions in for example different departments.

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