Impact of Legal Entity Time Zone on Accounting Dates

As mentioned earlier, the server time zone is used by default to record and derive the various accounting dates. However, when the legal entity time zone is enabled, it plays an important role in how the accounting dates are recorded and derived.

The table here lists time zone used for recording and deriving the accounting dates depending on whether the legal entity time zone is disabled or enabled.

Date	Legal Entity Time Zone Enabled
Cost date	The cost date is derived from the transaction date. The transaction date is converted into the legal entity time zone.
Accounting date or general ledger date	This date is derived from the cost date. As the cost date is already in the legal entity time zone it ensures that the transactions are accounted in the correct general ledger periods.
Cost cutoff date	The date entered by the user is in the legal entity time zone.
Cost adjustment date	The date entered by the user is in the legal entity time zone.
Transaction overhead effective date	The date entered by the user is in the legal entity time zone.
Cost scenario effective date	The date entered by the user is in the legal entity time zone. It's the effective start date for standard costs, resource rates, and overhead rates after publishing the scenario.
Cost roll up date	For regular items, the work definition effective dates are converted into the legal entity time zone. For configured items, the work order start dates are converted into the legal entity time zone.
Currency conversion	This uses the transaction date. The transaction date is converted into the legal entity time zone.
Period end validations	The transaction dates are converted into the legal entity time zone to determine if they should be considered for period end validations.