This document describes how to create and maintain accounting periods in CS Lucas system.
WHY IS THIS IMPORTANT?
Every accounting events generated from transactions booked in CS Lucas need to go into a defined period so that these accounting events can be processed and posted. System identifies the period by post date for the accounting event.
1. From the Journals screen, click Period End to go to Period End screen.
2. Select the Accounting Centre from the drop down field to create accounting period.
3. Click Refresh. You will see a list of accounting periods created in the listing. If the accounting centre is new, the list would be blank.
Important note: To start accounting posting for a newly created Accounting Centre, the first accounting period must be closed. For example, if the new accounting centre wants to start posting on 1-May-2016, a prior period end, 30-Apr-2016 needs to be created and set to closed.
4. Click Add Period to create new accounting period.
5. New Accounting Period screen will displays. In this example, we will create 30-Apr-2016 and 31-May-2016.
6. Enter the following mandatory fields.
7. Once completed, click Save.
8. The newly created accounting period will be shown in the listing of Period End screen.
9. Close the first accounting period. Tick on the checkbox for period date 30-Apr-2016 and click Close Period.
10. A message prompt displays, click OK.
11. After closed, the status for the period will be marked as closed. Note that there should not be any outstanding unposted journals before closing an accounting period. All outstanding unposted events must be posted before an accounting period can be closed.
Once the period is closed, journals for post date on or before this period end date will be posted to the first day of the next open period.
12. To create next open period, repeat step 4 to 8. In this example, we will create 31-May-2016.
13. Click Save. The list will be updated with a new period and the status is open.
14. To amend accounting period, click on the Period Date you wish to amend.
15. The Amend Accounting Period screen displays.
16. You are only allowed to amend for Period Reference and FY Ref*. Click Save once done.
Note that period end date cannot be amended. If you have mistakenly create a wrong period end date, please delete the accounting period and re-key a new accounting period.
17. If you need to delete the accounting period due to creation mistake, tick on the checkbox of the accounting period to delete and click Delete from Period End screen.
18. A message prompt displays, click OK.
Note you are not allowed to delete the accounting period if there is already outstanding unposted events in the period.
19. The accounting period is deleted from the Period End listing.
20. A closed period can be reopened in the system. To reopen the period, select the period and click Reopen.
21. The status of the period will be shown as reopened. When a period is reopened, system will generate the reversals for all month end journals.
22. After all the accounting events are posted, the period can be closed. To close a period, select the period and click Close Period.
23. The status of the period will change to Closed. Once the period is closed, any amendment made to the existing transaction posted will be book to the next open period.
FREQUENTLY ASKED QUESTIONS
FAQ01. Why the system does not allow me to close a period?
If there is any outstanding unposted events on or before the period end date that you intend to close, system will prompt a message and prevent you from closing the period. Please need to post all outstanding unposted events and then close the period.
FAQ02. What happens if after the period is closed, I realized that there are missing transactions or correction required to existing transactions? What should I do?
Before you make any correction or enter the missing transactions, you need to reopen the period. See step 20-21 above for the detailed steps.
Navigate to the Period End screen.
Select the period to reopen. Click on the Reopen button. In the example below, 31 May 2016 is reopened.
The following are the views before and after you reopen the journals.
Before reopening the journals
After reopening the journals
System will generate reversal journals for previous month end events posted. The date of the reversal journal is on 31 May 2016, which is same as previous month end.
You need to process the period end again to generate new period end events.
Go to the Period End screen.
Select the Period and click on the Period End button.
FAQ03. If for the subsequent period (1 Jun) the reversal has already been posted, these will also be reversed when you re-open the period.
In this case, the event for 1 Jun will also be reversed when you reopen the period.
Before period reopening
After period reopening
System generates the reversal journals to reverse the previous period end events for 31 May 2016 and reversal (of the reversal to the period end) on 1 Jun respectively.
FAQ04. When recreate journals, system shows no posting period despite the accounting period is open and exists in the system. Why?
For any new accounting centre’s journals posting, the first accounting period must be closed in order for system to determine the next open period for posting. Please ensure that you have a preceding period before your first posting period and it must be closed.