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What is the best practice for Adjustment Period?

edited Jun 2, 2025 2:33PM in Ask A Guru 3 comments

Hi,

I was hoping to see if anyone had a general overview of how adjustment periods work.

My company wants to implement a 13th period, however, I've never used them before and want to make sure everything flows correctly should we begin to use it.

My main questions are:

  1. How does it impact the close, i.e. should it be revalued and IC eliminated?
  2. How do auto-reversing journals work with them, such prior period reveal & IC eliminations?
  3. Is there a risk that amortisation schedules, revenue arrangements and billing schedules will unintentionally post to the adjustment period instead of the desired period?

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