Setting Up Periods
Cost Management uses the accounting periods you define for your general ledger. You define accounting periods through period types and a calendar.
To set up periods:
1. Define an accounting period type.
Period types can be months, quarters, or years. Specify the number per year of the period type and whether the type corresponds to a system calendar (January to December) or a fiscal calendar. See: Defining Period Types.
2. Define the accounting periods in your calendar and associate one calendar with each General Ledger set of books you set up.
Inventory allows you to have multiple calendars, such as a fiscal calendar for one set of books and a different calendar for another set of books.
For each calendar, name the periods within the calendar (such as month names: Jan., Feb., and so on), the accounting period type, the year and quarter of the period, the period number, and the start and end date of the period. See: Defining Calendars.
3. Open the accounting periods you defined in your calendar for transaction collection purposes.
All Inventory and Work in Process transactions require an open period. The transaction date you specify (typically the current date) must fall within an open period. See: Maintaining Accounting Periods.
Attention: You can only open the period type accounted by your set of books. For most organizations, this is the monthly period type. You also cannot open an adjustments-type period--such as a thirteenth period for year-end adjustments.
Inventory also allows you to have multiple open periods for late transactions or correction of data before period close.
