Setting up accounting periods
In NetSuite OneWorld, you should enable the accounting periods for which you are trying to transact. Generally, this will be a 12-month period, whether it is a fiscal calendar or a different account period, as this feature supports general ledger management. NetSuite OneWorld also has the Multiple Calendars feature that can be enabled. This feature allows different accounting period rollups for your subsidiaries.
Accounting periods cannot be set up until the Accounting Periods feature has been enabled.
To enable the feature (need a user that has permission) at Setup>Company>Setup Tasks>Enable Features, on the Accounting subtab enable Accounting Periods.
There are several options when setting up accounting periods. You could set up one period at a time or a full year at once. Best practice would be to set up the entire year at once. You must have at least “Edit” level of the Manage Accounting Periods permission to set up accounting periods.
After the feature is enabled, periods can be set up at Setup>Accounting>Manage G/L>Manage Accounting Periods. Here you can set up the Full Year, New Year Only, New Quarter Only or the Base Period. If you would prefer the whole year at once, On the Manage Accounting Periods Page, click “Set Up Full Year”.
The Account Periods for Full Year page appears.
In the first fiscal month field, select the month your fiscal year starts.
In the “Fiscal Year End” field, enter or accept the four-digit fiscal year for which you want to generate accounting periods. For example, if you were generating periods for 2018, you would enter 2018 in this field.
Select the format you want to use for your accounting periods:
- Calendar Months – This sets up 12 periods, one for each calendar month in the fiscal year.
- Weeks – This sets up 13 periods, each for every 4 weeks in the fiscal year.
- 4-4/5 Weeks – This sets up a fiscal year so that you have two 4-week periods followed by one 5-week period, repeating this cycle four times for a total of 13 periods in a fiscal year. The first accounting period of the year is from January 1 to January 28, regardless of the day of the week on which January 1 falls. The last accounting period of the year ends on December 31. Used this way, the 4-4-5 periods shift the ending day of the week from year to year.
- In the “Year in Period Name” field, select the starting or ending year to include in the period name. For example, if a fiscal year starts in 2014 and ends in 2015, selecting “Ending Year of Period” would include 2015 in the name of the period.
Check “One-Day Year-End Adj. Period” if you want to include a standalone adjustment period for last day of this fiscal year.
If the accounting periods are not enabled, then NetSuite transactions would be posted in real time and you would not be able to select a past or future posting period for each transaction. Each day must belong to an accounting period to ensure accuracy in reporting.
An advantage to setting up Accounting Periods is that you can lock a period to prevent posting of transactions that may affect the general ledger why you are trying to close the books for the period. This also prevents erroneous data entry in future periods.
Items to Note when setting up Accounting Periods:
If it is 2018 and you create a new Accounting Period for 2016 and period 2017 is closed, then the 2016 accounting period will be locked upon creation to prevent mismatches and accidental G/L impact in the periods that follow. You must manually unlock A/R and A/P in each period to enter transactions.
When you add, edit or delete accounting periods, a batch process runs in the background to align existing transactions with the appropriate accounting period. This process must finish before you can make additional changes. This may take some time depending on the size of your request.
To view the status of changes to accounting periods, go to Setup> Accounting > Manage G/L > Manage Accounting Periods > Status.
The batch job status can be Complete, Processing, Pending, Deferred or Failed. On pending, deferred or failed status the system would provide a detailed message.