Financial Year Period Setup

Topic overview

The setup wizard's General Accounting - Financial Year Period Setup command allows you to define book months by one the following methods:

• Manual Advance - manually advance book months at the end of each month
• Calendar Book Months - book months are automatically set to the date (recommended option)
• 4-4-5 - book months are set to a specific type of date range rather than calendar months. This is required by an accounting method called 4-4-5 accounting.
• 5-4-4 - book months are set to a specific type of date range rather than calendar months. This is required by an accounting method called 4-4-5 accounting.
• Custom Months - book months are set to a user-defined type of date range rather than calendar months.

Your settings affect all reporting, point of sale, and accounting functions (journal entries, bills, GL etc).

• Warning: If you decide to change methods you should so do for an entire financial year. You should run the tool box routine "Book Month Adjustments" if you change periods or period types.

Definitions

4-4-5 CALENDAR - in budgeting and accounting, is the breakdown of each month into weeks by counting the number of times Friday occurs within each month.

For example, Jan = 4 weeks, Feb = 4 weeks, Mar= 5 weeks, Apr = 4 weeks, May = 4 weeks, Jun = 5 weeks… etc. to total 52 weeks in a 12 month period. Every third month Friday occurs five times. All other months, Friday occurs four times. Months where Friday occurs 5 times, are considered a 5 week month, whereas the 4 Friday months are considered as 4 week months.

Custom method example

If each financial year always begins on 1 July and ends on 30 June, the periods are as follows:

Period 1   4 weeks - July
Period 2   4 weeks - August
Period 3   5 weeks - September
Period 4   4 weeks - October
Period 5   4 weeks - November
Period 6   5 weeks - December
Period 7   4 weeks - January
Period 8   4 weeks - February
Period 9   5 weeks - March
Period 10 4 weeks - April
Period 11 4 weeks - May
Period 12 5 weeks - June

This means that, Period 1 would be identified by 07/06 throughout the program to represent July as the Book month and 2006 as the period year.

Access

To set and configure the book month method, select Setup Tools> Setup Wizard> General Accounting> Financial Year Period Setup as shown in Figure 1.

Figure 1: The Financial Year Period Setup menu

The Financial Year Period Setup window shown in Figure 3 appears.

How Tos

Click the links below to read about the configuration required for the book month method you select:

• Advance book months manually (at the end of each month)
• Set book months to the date (recommended option)
• Set book months to 4-4-5 date range
• Set book months to 5-4-4 date range
• Set book months to a custom date range

Advance book months manually

Select the Manual Advance option. The Financial Year Period Setup window shown in Figure 2 appears.

Figure 2: The Financial Year Period Setup window - Manual Advance method

Advance the A/R Book Month, A/P Book Month, Ledger Book Month by typing directly in the text box or by clicking on the field name to open the Enter a Book Month dialog box shown in Figure 3, to select a date or no book option before clicking [OK]. Click [Save] to save your selection.

Figure 2: The Financial Year Period Setup window - Calendar Book Months

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Set book months to the date (default)

Select the Calendar Book Months option. The Financial Year Period Setup window shown in Figure 4 appears (default method). The calendar displays up to four months of the current year with current day marked. Use the forward and back arrow to display future or previous months. Click [Save] to save your selection.

Figure 4: The Financial Year Period Setup window - Calendar Book Months method

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Set book months to 4-4-5 date range

Select the 4-4-5 option. The Financial Year Period Setup window shown in Figure 5, displays up to four months of the current year with current day marked. Use the forward and back arrow to display future or previous months.

Figure 5: The Financial Year Period Setup window - 4-4-5 method

1. Click the down-arrow and select the Financial Year from the drop-down list. The years available are what you have setup
2. Select the End of financial week by the desired day of the week and click [Reset]. The calendar year list resets and reorders based on the day you select.
3. Click [Save] to save your selection.
    

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Set book months to 5-4-4 date range

Select the 5-4-4 option. The Financial Year Period Setup window shown in Figure 5 appears. he calendar displays up to four months of the current year with current day marked. Use the forward and back arrow to display future or previous months.

Figure 5: The Financial Year Period Setup window - 5-4-4 method

1. Click the down-arrow and select the Financial Year from the drop-down list.
2. Select the End of financial week by the desired day of the week and click [Reset]. The calendar year list resets and reorders based on the day you select.
3. Click [Save] to save your selection.
    

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Set book months to a custom date range

Select the 5-4-4 option. The Financial Year Period Setup window shown in Figure 5 appears. he calendar displays up to four months of the current year with current day marked. Use the forward and back arrow to display future or previous months.

Figure 5: The Financial Year Period Setup window - Custom Months method

1. Click the down-arrow and select the Financial Year from the drop-down list.
2. Adjust the Start Date and End Date for each month as desired. Any overlapping periods or reverse range errors are reported in the memo area to the right of the calendar year list.
3. Click [Save] to save your selection.
    

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