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Do you ever want to PERMANENTLY CLOSE periods?

  • 1.  Do you ever want to PERMANENTLY CLOSE periods?

    Posted 14 days ago
    Curious to hear if other companies ever change period status to "Permanently Closed" rather than "On Hold" in the ledger calendar.  What is a Best Practice for closing periods?  Is it safe to permanently close periods 2+ years back that have been through an audit or is there a risk?


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    Lydia Miller
    Automobile Protection Corp
    Norcross GA
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    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


  • 2.  RE: Do you ever want to PERMANENTLY CLOSE periods?

    Posted 13 days ago
    To date, I have never permanently closed an accounting period.  Reason being is I like the flexibility of being able to reclassify items so I can produce comparable financial statements.  For example, if I want to pull out something to a separate P&L line items to a new account, I will restate the prior year history by doing an actual reclass journal entry to the new account as well.  When we do such restatements, we validate them closely to make sure that actual results don't change, just the presentation on the statements so we have comparability in our reporting.

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    Michelle Steffen
    Corporate Controller
    Jasper Engines
    Jasper IN
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    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


  • 3.  RE: Do you ever want to PERMANENTLY CLOSE periods?

    Posted 9 days ago
    Lydia,

    It is best practice to never close, instead put periods on hold.  Closed periods may not be reopened.  Thus, you will have the ability, as needed to open prior periods and post additional journals (obviously restricted by your security to only authorized personnel).  An example case for opening several years may be: Corporate reorganization, like changing prior years postings at a top level for various Financial Dimensions via journals.

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    James Sonne
    James D Sonne
    Sharpsburg
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    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


  • 4.  RE: Do you ever want to PERMANENTLY CLOSE periods?

    TOP CONTRIBUTOR
    Posted 8 days ago
    The only time I have seen an entity permanently close a period is when there is a statutory (local government) requirement - initially AX wasn't designed for USA, so I believe some countries required this.  I agree and haven't seen any reason to actually ever permanently close a period.

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    Shirley Adams
    AKA, an HSO company
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    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


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