Opening a Period

When you open an accounting period, the application prepares the new period for journal entry.

If you open a period when average balance processing is enabled, the application initializes the aggregate balances. Period-to-date aggregates are set to zero. Quarter-to-date and year-to-date aggregates are only initialized if the new period is at the beginning of a quarter or a year, respectively. Otherwise, the ending quarter-to-date and year-to-date aggregates from the previous period are carried forward as the beginning balance of the new period.

If you enabled income statement accounts for average balance processing, when you open the first period of a new fiscal year, the application resets the income and expenses accounts to zero. Aggregates are set back to zero at the beginning of each new year for the period average-to-date, quarter average-to-date, and year average-to-date balances. The beginning balance of retained earnings is set to the sum of the prior year's ending balance, plus the net of the ending balances of the income and expenses accounts.

If you haven't enabled income statement accounts for average balance processing, when you open the first period of a new fiscal year, the application sets the nonpostable net income account back to zero. Aggregates are set back to zero at the beginning of each new year for period average-to-date, quarter average-to-date, and year average-to-date balances. The beginning balance of retained earnings is set to the sum of the prior year's ending balance, plus the ending balance of the nonpostable net income account.