2 Replies Latest reply on Jun 12, 2008 1:24 PM by 594214

    Period Closure

      What is the significance of closing periods on Purchasing? We do not transfer any accounting entries to GL post period closure, so why is it necessary?

        • 1. Re: Period Closure
          Accounting entries do go to GL from Purchasing to GL: For inventory purchases, where you accrue on receipt, accounting for accrual between the receiving account and accrual account are stored in the rcv_receiving_sub_ledger and for expenses purchases, you might have accrual on month end.

          Also we have encumbrance entries that flow to GL.

          By closing period, we disallow receiving of goods into that period.

          • 2. Re: Period Closure
            Accounting entries of accrual and receiving go to GL thru inventory not thru purchasing. only in case of encumbrance entries passed to gl.
            where as you cannot open the payable period until unless purchasing period will not be open.

            Thanks & Regards
            Ankur Dawra