An Accounting Period defines a time period in which financial statements are recorded.

In BizCentric, the Accounting Period represents a defined timeframe during which selected submittable transactions (such as Sales/Purchase Invoices, Stock Entries, Payroll Entries, Journal Entries, etc.) can be created. Transactions of this nature are only permitted to be created within the boundaries of the specified Accounting Period.

Why is Accounting Period needed?

When transactions are entered, they impact the ledgers and subsequently affect the generation of reports based on ledger data. This situation can lead to complications when producing financial reports for auditing purposes or when closing the accounting books for the fiscal year.

The Accounting Period feature can be employed to restrict the timeframe during which transactions can be entered, thereby safeguarding the accuracy and integrity of the associated reports.

1. How to create an Accounting Period

1.1 What is the “Closed” option for the selected transactions used for?

The “Closed” option within the child table for transaction document types determines which transactions are subject to restriction after the conclusion of the Accounting Period.

It’s important to note that if the Accounting Period concludes and any selected transactions in the child table do not have the “Closed” option enabled, they will not be restricted after the Accounting Period ends.

Here are the steps to set up an Accounting Period:

1. Provide a name for the Accounting Period.
2. Specify the time frame by setting Start and End Dates.
3. Add or remove transactions from the table. Transactions marked with the “Closed” option checked will be restricted after the accounting period ends.
4. Save and Submit.

If you attempt to save a closed transaction after the Accounting Period has ended, you will encounter a validation error preventing you from proceeding.

Note: No role can save or submit transactions defined in the Accounting Period, even the Role set in ‘Role Allowed to Set Frozen Accounts & Edit Frozen Entries’ in Account Settings.

2. Related Topics

• Period Closing Voucher