Accounting Period

Requirement

Accounting period needs to look at the appropriate financial year group linked to the Legal entity being used on a document and then within the Financial year group look at the appropriate financial year and periods.

Date from and Date to will be enabled and marked as mandatory.

The Periods option is not mandatory but if completed it will calculate the Date to based on the number of Periods entered from the Date from date based on the number of days in each period. For example, if the Date from was 1st Jan and the Financial periods were 1st Jan to 28th Jan and 29th Jan to 25th Feb and you entered 2 in the periods box the Date to date will be suggested as 25th Feb.

Calculation under the Accounting Period method

The Date from and Date to will be compared with the Financial periods that encompass that date range and the deferred income/prepayment should be apportioned based on the number of days that fall within each period.

Examples:

Example 1

  • Accounting periods:
    • Period 1: 1st Jan - 28th Jan
    • Period 2: 29th Jan - 25th Feb
    • Period 3: 26th Feb - 1st Apr
  • Date from: 1st Jan
  • Date to: 1st Apr
  • Total Amount: £1300
  • Total number of days: 91
    • 1st Jan - 28th Jan = 28
    • 29th Jan - 25th Feb = 28
    • 26th Feb - 1st Apr = 35
  • Split of deferred income
    • Period 1: £400 (28/91 x 1300)
    • Period 2: £400 (28/91 x 1300)
    • Period 3: £500 (35/91 x 1300)

Example 2

  • Accounting periods:
    • Period 1: 1st Jan - 28th Jan
    • Period 2: 29th Jan - 25th Feb
    • Period 3: 26th Feb - 1st Apr
  • Date from: 15th Jan
  • Date to: 11th Mar
  • Total Amount: £1300
  • Total number of days: 56
    • 15th Jan - 28th Jan = 14
    • 29th Jan - 25th Feb = 28
    • 26th Feb - 11th Mar = 14
  • Split of deferred income:
    • Period 1: £325 (14/56 x 1300)
    • Period 2: £650 (28/56 x 1300)
    • Period 3: £325 (14/56 x 1300)

The deferred income/prepayment postings should be made on the first day of each period, so in the above examples this would be -

  • 1st Jan
  • 29th Jan
  • 26th Feb.

Periods not existing

Where an accounting period does not exist for any of the dates between the deferred income/prepayment From date and Date to, a warning shows stating that the accounting periods need to be created for the date range required or the date range for the deferred income posting needs to be amended to fall within the periods already created.

The system will then stop the document being submitted until this has been corrected.

Intercompany

For any Multi-co Sale or Purchase documents where the interco attribute is filled out with a legal entity and it has the deferred income/prepayment box ticked, if the Accounting period deferred distribution profile is selected and the interco legal entity is in a different Financial Year Group from the header legal entity, then a message will show advising that this deferred income/prepayment distribution profile cannot be used for this interco legal entity.

The User will be prevented from saving the document until they have amended this selection.


Updated February 2026