Accounting Cycles

Accounting cycles define the number of weeks in each financial period in each financial quarter. For example, the 4-4-5 accounting cycle means that in each quarter, the first financial period consists of the first four weeks, the second period consists of the next four weeks, and the third period consists if the next five weeks. This quarter then accounts for 13 weeks, and the four quarters account for 52 weeks, or the full calendar year.

You can configure a financial year to adhere to one of the following accounting cycles:

Table 12-1 4-4-5 and 5-4-4 Accounting Cycle Examples

4-4-5 5-4-4

Q3 and Q4 example using 4-4-5 accounting cycle.

Q3 and Q4 example using 5-4-4 accounting cycle.

Table 12-2 4-5-4 and 4-4-4 Accounting Cycle Examples

4-5-4 4-4-4

Q3 and Q4 example using 4-5-4 accounting cycle.

Q3 and Q4 example using 4-4-4 accounting cycle, showing the 13th period at the end.

The 4-4-4 accounting cycle adds an additional financial period (Period 13) to account for the remaining weeks.

Related Topics

Parent topic: Financial Calendars and Day Parts