Step 1: Designing Your Financial Framework – Part II Defining Dynamics GP Fiscal Periods
In this section we’ll cover the following:
- Historical Years
- Open / Future Years
- Period Close
- Creating New Fiscal Periods
Another small bit of setup you’re going to want to do in Dynamics GP, is to define your fiscal periods. Dynamics GP is date sensitive. And what I mean by that is that the posting date of the transactions you enter into Dynamics GP, will be the date to which the transaction posts in the general ledger.
You can change the Period Names of the various periods, e.g. Change “Period 1” to “January”. You can also change the start date of each period, so that if you use a 4-4-5 fiscal calendar, you can identify the appropriate start date of each period.
You can also have fiscal years with a number of periods greater or less than 12. So maybe you have a short year or “stub” year. You can easily define this in the Fiscal Periods Setup screen.
Another function of this screen is to control posting to the general ledger to prevent unauthorized posting to a “closed” period. If a period is marked as closed in the Fiscal Periods Setup screen, transactions can be saved into a batch, but they will not post.
Additionally if you want to reopen a period for posting, you can do that as well. Closing a period in this screen does not initiate any processing. It only prevents transactions from posting to the closed period(s).