Fiscal Years & Periods

Fiscal Years and Fiscal Periods are central to the management of accounting transactions throughout the year. Each Business Unit should have its own

Note: An open, current fiscal year must exist to work with products, orders, and to create prices. A best practice is to create the next fiscal year at least 6 months before the end of the current fiscal year. If the fiscal year is allowed to end without the creation of a new one, order creation will not function.

A Fiscal Year is the means by which staff can organize and review all of a year's accounting transactions as well as recognize deferred revenue (if enabled). The Fiscal Year can be set to start on any date (not only Jan 1st) and is automatically set with 12 months in total. The Fiscal Year is divided into smaller Fiscal Periods.

A Fiscal Period is part of the Fiscal Year. These allow for the management of batches and recognition of revenue within a specific period of the Fiscal Year. Batches in the system are organized by and linked to fiscal periods. When creating a new fiscal year, staff can choose whether it should be divided into 2, 4, 6, or 12 fiscal periods, though outside of unusual scenarios, the 12-period option should be selected.

The Fiscal Year allows accounting staff to:

• separate the fiscal year into periods,
• close and post batches within those periods,
• recognize deferred revenue from the Fiscal Period Record, and
• generate a mass ledger for all batches within that period.

The Fiscal Year is set up in the Business Unit. Periods created within the Fiscal Year are selectable during the batch creation process. Each batch must be assigned to a fiscal period.

For help in configuring the fiscal year, see Setting up a Fiscal Year.