The holidays are behind you. Tax reporting is over. Relaxation is on your horizon.
Do yourself a favor and review your date pattern setup now for next year’s calendar. It’s a simple change now, but once records are posted, it can take many hours to locate and repair records that have been posted to the wrong period. You will be pulling out your hair as Trial Balance reports, FASTR reports, Companies in Balance Integrity reports and others start showing out of balance issues.
What types of situations might happen?
- You might have mis-typed your dates. Verify that all the period end dates are correct and that none were entered incorrectly with a typing error such as entering January 21 instead of 31.
- If you use a calendar month end date for the ending date of your fiscal periods, this applies to you. Next year, 2016, is a Leap Year and February will end on the 29th - not the 28th. If you forget to setup the February end date to the 29th and you add a transaction with a GL date of 2/29, the system will post it to period 3 instead of period 2, as intended.
- If you make a change in your fiscal date pattern as part of a merger, acquisition, or a business need for a different date pattern, a period end date change can have the same impact as an incorrect period end date.
In the last two situations, if you generate automatic entries by batch (Offset Method B) for Accounts Payable and Accounts Receivable, the system uses the period-end date from the fiscal date pattern as the G/L date for the automatic entry. If the period-end date is 2/28, and you post transactions using a G/L date of 2/29, the system assigns 3/31 as the G/L date of the AE. When you run the Repost Account Ledger program, it corrects only those records with a G/L date of 2/29 to period 2; the AE balancing entry for the batch remains in period 3 because its G/L date is 3/31. Therefore, the result of running the Repost Account Ledger program is batches out of balance. To keep the batches in balance, you must identify the AEs and enter journal entries to reallocate the amounts to the proper period.
While you’re in there, go ahead and look at fiscal year 2020, and even 2024 if your date patterns are setup that far ahead, as these are the next Leap Years . If you move on to a new position, your successor will thank you for having the dates set correctly.
There are several documents to assist you:
- Ramifications of Leap Year (29 Days in February) in 2012, 2016, 2020 (Doc ID 660105.1) describes how to find and verify the period end dates set up on your system.
- Finding Batches Posted Out of Balance (Doc ID 662609.1) helps you setup a World Writer report to locate batches where part of the entry is on one period and the AE entry is in another.
Don’t let a simple date pattern set up issue set you up for a big headache.