Question

Two Year Closing Periods in a Fiscal Year?

  • 16 September 2021
  • 1 reply
  • 114 views
A
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Userlevel 5
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Hello.

 

Our fiscal year 2022 starts in October 2021. At the end of December, there will be a change of owners / acquisition so we would like to do a year close to clear the income statement (Period 1 to Period 3  FY2022) to retained earnings. At the start of January 2022 (Period 4 FY2022), we will manually upload balances under this new ownership. Then at at then of September 2022 (Period 12 FY2022), will do a year close to clear the income statement to retained.

 

So essentially, we would like to do close to mark the ownership change/acquisition then a another close to end the year. As such, we will have two year closings (ie. two year closing periods in FY2022).  Is this possible?

 

I would appreciate any thoughts on this or other alternatives. Thank you.

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1 reply

T
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Userlevel 7
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Hi, 

You can essentially do this, but not via the formalized year end process. You can’t have multiple 00 type periods per year.  

Hopefully you don’t have any “future” postings - such that October has no data.    If that’s the case, then you can edit the accounting periods such that if needed you could create a new period for 1 day and do your adjustments in that new period.  Else If October has data you will need some other way  to segregate those adjusting entries.  

One of my clients used a Financial project / multiple financial projects to designate all flavors of audit adjustments rather than entering the data into a separate period.  You could do similar and crate one or more financial projects (or other) to capture these adjusting entries.  Then for reporting you could include /  exclude the project(s) depending on “how” you view the account balances.  

 

Best regards, 

Thomas

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