How to manage the accounting period in RevRec?

Scope

What is the accounting period in RevRec?

Can we make prior period adjustments in the RevRec accounting period?

What are the effects of closing the accounting period in RevRec?

Solution

The accounting period is a primary time concept in any accounting system. RevRec leverages the accounting period to determine what transactional data belongs to which period.

The accounting period is always visible right on the top toolbar of the Homepage.

Once you set the accounting period the system marks the prior period as "closed" (in my example this would be the month of November) and hence the revenue for that period is closed or locked down and the revenue or any other accounting number for that period cannot be changed.

Prior Period Adjustments

You can still make corrections to orders from prior periods but the net effect of those changes will be computed by RevRec by using an internal rewind/ replay algorithm and the change in value will be available in the current period. You can manage it from Settings > Configure > Accounting Options > Reopen Accounting Period.

Effects of Closing

When you close a period, you will want to post to your ledger at the same time. If you have opted to use automated integration to an accounting system, RevRec will automatically post your journal entries for you at this time, if not, then you can use our journal summary reports to manually record your ledger transactions at whatever level you choose.