What does closing the fiscal period do?
Once the Fiscal Period of an Association is closed, AR and AP transactions can no longer be made for those dates. This effectively "locks" the Association, meaning that you can be confident that the financials are accurate. Closing the fiscal period will also create and upload the month's Paid Invoice Images in the Invoice Images folder of the Association > Documents screen.
Note: GL entries CAN still be made in a closed period. Items can also be deleted from the Audit tab of the Homeowner > Ledger or Service Provider > Invoices pages.
How do you close the fiscal period?
The fiscal period is often closed in one of two ways. Either manually through the Association > Settings screen, or more often through the Financial Delivery action item. The Financial Delivery action item has a step built in to close the fiscal period.
Found in Association > Settings > Current Period, this will display the date the period is closed. Meaning, the next day AFTER the displayed date is the first day of the open period.
In the screenshot below, the date displayed is 01/31/2021, meaning the period would be open and transactions could be made as of 02/01/2021.
Financial Delivery Action Item:
One of the default steps of your Financial Delivery Action Item will be the Close Fiscal Period step. This Step will have the Additional Action of Close Fiscal Period. When the Action Item hits this step, it will close the period as of the following dates:
- Date selected as Report End Date when creating the Action Item
- If none selected, the last day of the prior month
Note: For more information about Additional Actions and advanced action item options, visit Action Step Additional Actions.
How do I reopen the period?
In the event that you need to make changes to AR or AP items in prior periods, it is possible to Reopen the Fiscal Period. To reopen a closed fiscal period, navigate to Association > Settings > Current Period and edit the date to be a date prior to the date of your adjustment.
Once you have made or adjusted your needed transactions, be sure to change the date back to avoid additional transactions being made without your knowledge. You can do this using either of the methods described above.