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Open And Close Balance Open and close accounting periods to control journal entry and journal posting, as well as compute period- and year-end actual and budget account balances for reporting. Accounting periods can have one of the following statuses: Open: Journal entry and posting allowed. Closed: Journal entry and posting not allowed until accounting period is reopened. Reporting and inquiry allowed. Permanently Closed: Journal entry and posting not allowed. You cannot change this period status. Reporting and inquiry allowed. Never Opened: Journal entry and posting are not allowed. General Ledger assigns this status to any period preceding the first period ever opened in your calendar, or to any period that has been defined, but is not yet future-enterable. You cannot change this period status. Future-Entry: Journal entry is allowed, but posting is not. Your period is not yet open, but falls within the range of future-enterable periods you designated in the Set of Books window. You cannot change this period status without using the concurrent process to open the period. Note: When you define a new set of books, choose carefully the first accounting period you want to open. Once you open your first accounting period, General Ledger does not allow you to open prior accounting periods. Additionally, you cannot translate account balances for the first period ever opened. Therefore, we recommend that you open at least one period prior to the first accounting period in which you wish to enter transactions. Additional Information: If you use Multiple Reporting Currencies, you must open/close accounting periods in your primary set of books and in each of your reporting sets of books.
General Ledger displays the Latest Open accounting period. If you open the first period of a new fiscal year.=> To open a new accounting period: Setup -> open/close 1. Enter Permanently Closed to prevent entering or posting journals to that period. Enter Closed to prevent entering or posting journals to that period. 2. Choose Open Next Period. to maximize the efficiency of the General Ledger posting process. General Ledger displays all accounting periods defined for your calendar with the period type of your set of books. The current period remains Open. Note that while a period may be the most recently opened accounting period. You can reopen a closed period at any time. => To close an accounting period 1. . 3. Select the open period that you want to close. as well as to minimize the possibility of user error. You cannot reopen a permanently closed period. 3. limit the number of accounting periods that are open at one time. this period may have a current status of closed. 2. General Ledger automatically updates the Retained Earnings account. Navigate to the Open and Close Periods window. Save your work. Save your work. Suggestion: Although you can have several open accounting periods. 4. General Ledger calculates the ending account balances for the current period. 4. Enter a new status for the period. and launches a concurrent process to open the next period. Navigate to the Open and Close Periods window.
General Ledger displays all accounting periods defined for your calendar with the period type of your set of books. 3. Overview Of Ecumbarance Year With General Ledger you can record pre-expenditures commonly known as encumbrances. You can reopen any closed period that is not permanently closed. Encumbrances can also be used to predict cash outflow and as a general planning tool. Select the period that you want to reopen. Save your work. . 4. Navigate to the Open and Close Periods window. you can still enter manual encumbrances via journal entry. To use the full capabilities of encumbrance accounting. but you cannot generate encumbrances from requisitions and purchase orders.=> To reopen an accounting period 1. you must enable the budgetary control flag for a set of books. Change the status to Open. When you enable the budgetary control flag. the system automatically creates encumbrances from requisitions. When you do not enable the budgetary control flag. purchase orders and other transactions originating in feeder systems such as Purchasing and Payables. The primary purpose of tracking encumbrances is to avoid overspending a budget. 2.
You do not need to open encumbrance years if you are not using encumbrance accounting. If the debit amounts do not equal the credit amounts in either your manual or imported encumbrance entries. and optional description. When you open additional encumbrance years. To Enter An Encumbrance Batch (Journals -> Encumbrance ) 1. encumbrance type. General Ledger automatically validates each segment value as well as the combination of segments you enter. specifying an account and debit or credit amount for each. Choose Journals to enter your encumbrance journals. and an optional Control Total. General Ledger automatically rolls your project-to-date encumbrance balances forward through the last period of the latest open encumbrance year. category. You can enter encumbrances up to the last period of your latest open encumbrance year. General Ledger automatically displays your Latest Open encumbrance year. an appropriate Accounting Period. 2. You can enter and post encumbrance balances up to the last period of your latest open encumbrance year. 3. Enter a batch Name. 5. Open Encumbrance Year When you open the first period ever for your set of books. 2. Create your encumbrance journal by entering a name. Enter encumbrance lines. reference and control total. General Ledger submits a concurrent process to open the next encumbrance year. Navigate to the Enter Encumbrances window. Choose Open Next Year. 6. General Ledger automatically opens your first encumbrance year as well. To open an encumbrance year: 1. 4. Navigate to the Open and Close Periods window. Choose New Batch. General Ledger automatically enters a balancing .
Obligation An encumbrance you record when you turn a requisition into a purchase order. You can define as many additional encumbrance types as you want or change the names of the standard encumbrance types to reflect the terminology you use within your organization. Your encumbrance entries always balance by balancing segment value. General Ledger has the following predefined encumbrance types: Commitment An encumbrance you record when you complete a purchase requisition. Enter a name and description. Defining Encumbrance Type Encumbrance types let you classify and track expenditures according to the purchasing approval process. You can define encumbrance types in addition to the General Ledger standard encumbrance types or disable existing encumbrance types.amount to the Reserve for Encumbrances account at posting. Save your work. When you inquire on funds available. Navigate to the Encumbrance Types window. To define an encumbrance type: (Setup -> Journal -> Encumbrances ) 1. You can review functional currency budget. 4. actual and encumbrance balances. Amount Type How the System Calculates Funds Available . and funds available for any detail or summary account. 7. Save your work View Funds Available You can review funds available and compare encumbrances and expenditures with budgets. the amount type you specify determines how General Ledger calculates funds available. Enable the encumbrance type. 3. You specify an encumbrance type when you enter an encumbrance and when you perform inquiries. General Ledger calculates funds available by subtracting expenditures and encumbrances from budgets. 2.
spend $50 and have $10 in encumbrances. less actuals and encumbrances for the period. Year-to-Date Calculates funds available as the budgeted amount to date for the year. You can review the cumulative funds available total only by selecting Year-to-Date Extended as the amount type.Period-toDate Quarter-toDate Extended Calculates funds available as the budgeted amount for the period. less actuals and encumbrances to date for the quarter. If you view funds available for the amount type PTD for February. For example. Calculates funds available as the budgeted amount to date for the quarter. For example. the February balances will not include the $40 available at the end of January. if you budget $100 for January.Calculates funds available as the budgeted amount to date. the funds available for January is $40. . The available amount for the second month of the quarter is $200. less actuals and Date encumbrances to date. you budget $100 to an account for each of the three months in a quarter. you budget $100 to an account for each of the 12 months. For example. When you choose an amount type of YTDE. Project-to. you can view cumulative amounts so the February balances will include the $40 available for January. less Extended actuals and encumbrances to date for the year. The available amount for the first half of the year is $600.