Receipt Accounting Periods

Receipt Accounting uses periods for its subledgers to control transaction processing and subledger activities independent of the General Ledger periods. You can monitor the timing of transaction processing and perform validations in preparation for period close by using receipt accounting periods.

You don't need to depend on the general ledger periods for transaction accounting, instead the receipt accounting period boundary and period status can be used to account the transactions in the correct period for these flows:

• Accrue at receipt
• Accrue at period end
• Accrual clearing and reversal

Note:

You must enable all the relevant profile options to use the new Redwood user experience, because receipt accounting periods are available only in this new user experience.

You must start by configuring the relevant parameters on the Receipt Accounting Parameters page. After configuring, periods are automatically created based on the setup and set to the Never Opened status. You can view, monitor, and manage the periods on the Receipt Accounting Periods page by using these capabilities:

• Update period status to Open, Close, Pending Close, or Permanently Closed as the accounting period activities progress.

• Enforce gapless period opening to maintain accounting integrity.

• Run period end validations for each period.

• Drill down to the Receipt Accounting Exceptions Summary page to review validation results.

• View the status of the associated General Ledger period and related subledger period at a glance.

• Copy periods from General Ledger to sync accounting calendars across ledgers and subledgers.

Transaction Processing

Transactions that accrue at receipt are processed based on the receipt accounting period status and the general ledger period status as shown in this table:

Receipt Accounting Period Status	General Ledger Period Status	Transaction Processing	Action
Never Opened	Never Opened	Transactions aren't processed.	Open the Receipt Accounting period and the General Ledger period.
Open or Pending Close	Never Opened	Transactions aren't processed.	Open the General Ledger period.
Open or Pending Close	Future Enterable	Transactions are processed but not final accounted in General Ledger.	To final account, open the General Ledger period.
Open or Pending Close	Open	Transactions are processed.	View distributions on the Receipt Accounting Distributions page.
Close or Permanently Closed	Open	Transactions are rolled over if the next set of periods are open.	View distributions on the Receipt Accounting Distributions page.
Close or Permanently Closed	Close or Permanently Closed	Transactions are rolled over if the next set of periods are open.	View distributions on the Receipt Accounting Distributions page.
Open or Pending Close	Close or Permanently Closed	Transactions aren't processed.	Close the Receipt Accounting period and open the next period.

Transactions are processed only when the Receipt Accounting period is in the Open or Pending Close status and the corresponding General Ledger period is in the Open or Future Enterable status. Any other status combination results in processing errors or causes transactions to roll over to the next available period.

If transactions fall in a closed period and can't be rolled over to the next period, distributions won't be created. You can view these transactions on the Receipt Accounting Exceptions Summary page under the appropriate message.

Note:

Avoid closing the general ledger period until transactions prior to the first open receipt accounting period are fully processed to prevent transition issues.