Manage Month End Accounting Periods

Owned by Nancy Cohn (Deactivated)
Last updated: Aug 02, 2024
4 min read

 

You can close and reopen month end accounting periods associated with entities that use month end processing. For general information about viewing accounting periods, see Manage Accounting Periods.

When you set an entity’s Month End Processing Indicator field to Yes, the system sends messages to establish month end accounting periods.

Close Month End Accounting Periods

In the Close Month End Accounting Period panel, you can close a month end accounting period for an entity that uses month end processing.

Eagle recommends closing month end accounting periods after month end reconciliation. This prevents transactions from modifying a previously reconciled period for accounting and performance purposes. You can close a month end accounting period for one or all accounting bases associated with a specified entity. The system adds future month end accounting periods automatically when existing month end accounting periods are closed. You do not need to set up month end accounting periods for each account/basis on an annual basis.

Before you close the month end for an entity, all the entity’s daily accounting periods for that month must be closed. Before you can perform year end close, all monthly periods must be closed as well.

To close a month end accounting period:

  1. In Accounting Center, in the left navigation pane, click Transactions > Ledger > Accounting Periods > Close Month End Accounting Period.
    You see the Close Month End Accounting Period panel.

  2. In the Select Query Option list, indicate whether you want to close a month end accounting period for one accounting basis or all bases for a specified entity.
    Options include:
    - One Entity/One Basis. Allows you to specify the Portfolio ID or Portfolio Name value to identify the entity, and the Basis value to identify the accounting basis,
    - One Entity/All Basis. Default. Allows you to specify the Portfolio ID or Portfolio Name to identify the entity,

  3. In the Month list, select the month for the month end accounting period you want to close.
    Values range from Jan to Dec.

  4. In the Year box, enter the year for the month end accounting period you want to close, using a YYYY format.

  5. Click Submit.
    The system closes the month end accounting periods that met your criteria and automatically creates a month end accounting period for the same period in the following year for each specified entity/basis.

Reopen Month End Accounting Periods

In the Reopen Accounting Periods panel, you can reopen a month end accounting period for an entity that uses month end processing. You can reopen a month end accounting period for one or all accounting bases associated with a specified entity.

For example, suppose your accounting periods were closed through the end of March. However, the trade processing group missed a trade that occurred on March 28th, which must be processed. Since the March accounting periods are closed, the back dated transaction will be processed with an April 1st accounting date. An alternative way to handle a transaction that needs to be booked to a closed accounting period is to reopen the accounting period before booking the transaction. For example, you can reopen the accounting period to March 28th and query the accounting period to confirm that the correct period is open. When you book the transaction, the March 28th accounting date is recorded and the position is reflected in reports beginning on March 28th.

Reopening an accounting period should not be a regular process. If this occurs on a frequent basis, you should review the process of closing accounting periods. For example, if a trade was booked in a previous accounting period and canceled with a more recent accounting date, reopening the periods to rebook the original trade will result in the trade being reflected twice between the original accounting date and the cancel accounting date. This is because the cancel transaction is not effective until the cancel accounting date.

To reopen an accounting period:

  1. In Accounting Center, in the left navigation pane, click Transactions > Ledger > Accounting Periods > Reopen Accounting Period.
    You see the Reopen Accounting Period panel.

  2. In the Select Query Option list, indicate whether you want to reopen a month end accounting period for one accounting basis or all bases for a specified entity.
    Options include:
    - One Entity/One Basis. Allows you to specify the Portfolio ID or Portfolio Name value to identify the entity, and the Basis value to identify the accounting basis,
    - One Entity/All Basis. Default. Allows you to specify the Portfolio ID or Portfolio Name to identify the entity,

  3. In the Month list, select the month for the month end accounting period you want to reopen.
    Values range from Jan to Dec.

  4. In the Year box, enter the year for the month end accounting period you want to reopen, using a YYYY format.

  5. Click Submit.
    The system reopens the month end accounting periods that met your criteria and automatically creates a month end accounting period for the same period in the following year for each specified entity/basis.

 

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