Most Powerful Open Source ERP

How to Manage Accounting Periods

How to showing the management of accounting periods in ERP5.
  • Last Update:2016-04-13
  • Version:001
  • Language:en

How to walking through the management of accounting periods in ERP5.

Table of Contents

Managing accounting periods

Accounting periods are documents created inside each entity. These accounting periods allows controlling the validation of accounting transactions whose operation dates are within the time-frame of this period.
Accounting periods are created inside an entity using “Add Accounting Period” in the action menu and will be attached to the entity.
Two kinds of periods exists: Main accounting periods and secondary accounting periods. Secondary periods are created inside a main accounting period. Main periods represent organisation's accounting periods and are used to evaluate net income at its end. On the other hand, secondary periods are used to stabilise accounting data on their time-frames, as needed after sending data for partial consolidation.
Accounting periods can be viewed in the “Financial Information” tab of an entity.
An accounting period look this way:
An accounting period is defined by Title a Start Date and Stop Date , it also has a Short Title used in reference generation, and a description. Secondary periods are displayed in a list at the bottom.
Before starting a principal accounting period, it is possible to add its secondary periods using “Create Secondary Periods” from action menu. A dialogue is then displayed.
In this dialogue it is possible to create secondary periods with a Monthly or Quarterly Frequency. If the Start Periods box is ticked, periods will be created with the “Started” status.

Balance transaction

When an accounting period is closed, a balance transaction is automatically generated. A balance transaction uses balances from all accounts in the balance sheet, that is accounts being in “Equity”, “Liability” or ”Asset”. Difference between debit and credit will be use in the profit and loss account. When closing a period it is asked to choose the account to be used as profit and loss account.

Starting accounting for an entity

To start an entity accounting for its N period, the accounting period on N-1 must be started with a balance transaction to set balance on each account. Once this transaction is checked, N-1 period must be closed and starting balances for N will be set.


Accounting periods are visible by all system users and are managed by entity's general accountants, management controllers and  heads of administration and finance.


State after action
Start accounting period to allow transactions for this period
Temporarily Stop
Temporarily Stopped
Temporarily stop accounting period to prevent transaction entry  and keeps an opportunity to restart it.
In the case of a main accounting period, balance transaction is generated.  
Temporarily restart accounting period to enter new transactions in it
Stop accounting period to prevent transaction entry.


A  one year period can not be started if it does not contain monthly periods.
Main accounting periods can not overlap each other, that is a date can not be in two main periods.
Accounting periods must be consecutive: that is a starting date of period must be the following day of its preceding period's stop date
A period can not be stopped if entity's transactions on its time-frame  are not in “closed” or “cancelled” states

Related Articles