It is common accounting practice to close a month after completing reconciliation for all necessary financial institution accounts in that time frame. When a period is closed, you may not create new transactions during that date range.
Restrictions apply to adjusting the status of fiscal months and years, a few of which are listed here:
- A month cannot be closed if the prior month is active, with the exception of the first month of the fiscal year
- A month cannot be set active if the following month is closed
- To make changes in a prior month, set all later months active
- Making changes in a prior month may impact reconciliation
- A month cannot be closed if unreconciled financial institution statements exist
To mark a month closed:
- Go to Financials Main > Setup > Fiscal Years/Months
- Use the arrow beside the current fiscal year to reveal the months
- Edit the desired period
- Set Status to Closed
- Save