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Posting to a closed year 1

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PTina

Technical User
Oct 27, 2003
230
CA
I know that you can post to GL (usually adjusting entries) after closing a year by re-opening the period.

I am of the view however that the sub-modules (e.g. AR,AP,IV) cannot be posted to after closing the year. Am I correct? What would be the effect of posting to one of the sub-modules with a date that was in a closed year?

Can anyone help me clear up this issue? Thanks.
 
The same place you open periods for financial transaction is where you can also open periods for the other modules. As long as you have marked "Allow posting to history" on the general ledger setup (Setup-Financial-General) you can post to one closed year. To enable or disable the ability by period and module you go to Setup-Company-Fiscal Periods.

If you post to a sub module in a prior period it matters what your general ledger posting date on the transaction is. If the GL posting date is also the prior period, the company's financial statements would change. This could be bad especially when the financial statements have already been presented to a board or something.

If you GL posting date is the current period but only the subledger date is prior, you will have a reconciliation diference between the two. For instance, if you tried to compare 10/31/03 accounts receivable detail to the general ledger. Many companies have these diferences anyway. It's all what the company has decided for business process. Many companies also do this reconciliation as part of their month-end procedures so the person responsible for the financial statements would definetely want to know if either of these situations were going to take place.

Sorry so wordy. Hope that helped.
 
Thanks Stef315. I gather from your explanation that the system does allow you to post transactions in sub-modules to a closed year. We just need to be aware of the differences this will cause with the statements. I know its not a good practise but right now it seems unavoidable.

 
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