Period Locking

The period locking feature allows you to define different accounting periods and set their respective operational states. A period can be configured as "Open," allowing all transactions; "Open with no sales," where transactions are allowed but sales are excluded; or "Closed," which locks all transactions within the period.

The closure of accounting periods is a critical component in financial and accounting management, as it ensures the immutability and accuracy of records once they have been verified and approved for a given period. This functionality prevents inadvertent or malicious creation, modification, or deletion of transactions within a closed accounting period, thus preserving the accuracy and integrity of accounting data and facilitating audit and compliance processes.

1. Create a New Period

To create a new accounting period:

1. In the main menu, go to Accounting and then click on Period Locking.
2. In the list of Periods, click on the (+) button.
3. In the window that appears, define a code, fiscal year start, frequency, number of periods, and state.
4. Click Save to save the document.

Upon saving, Cashflow will automatically generate the number of periods you specified according to the selected frequency, all with the state you have chosen.

2. Change Period Status

To close or open a period, follow these steps:

1. In the main menu, go to Accounting, and then click on Period Locking.
2. Click on the Status of the period you want to change.
3. Choose the option you want (Open, Sales disabled, Closed, Locked).
4. You will be prompted to confirm the action.

3. Deleting a Period

To delete a period, follow these steps:

1. In the main menu, go to Accounting and then click on Period Locking.
2. Find the period you want to delete in the list.
3. Click on the action menu (the three horizontal dots).
4. Choose the Delete option.
5. You will be asked to confirm the action.

Tips & Best Practices

Here are some useful tips and best practices to optimize the use of the period locking function in Cashflow:

1. Timely Period Closing
   It is recommended to close periods as soon as all transactions have been verified and approved. This will prevent inadvertent alterations to accounting data and ensure accuracy in financial statements.
   ‍
2. Use "Open without Sales" State
   If your sales process has already concluded for a period but you still need to allow the recording of other transactions, the "Open without Sales" state can be very useful.
   ‍
3. Review Before Closing
   Before closing a period, ensure that all transactions have been entered and approved. Once closed, you won't be able to make any more entries in that period. However, you can always reopen it if necessary.
   ‍
4. Caution When Deleting Periods
   Remember that when you delete a period, you lose the ability to restrict transactions for that time interval. Make sure you genuinely don't need that control before deciding to delete a period.
   ‍
5. Use Period Codes
   Utilize period codes that are easily identifiable, such as the year and frequency (e.g., P-2024 for monthly periods in 2024). This will simplify the management of your accounting periods.
   ‍
6. State Changes with Caution
   Be careful when changing the state of a period. Make sure you understand the implications of each state (Open, Open without Sales, Closed) to avoid affecting your company's operations.

Implementing these tips can help improve the management of your accounting periods in Cashflow. If you have any questions or need additional assistance, please feel free to contact us.

Common Issues

Here are some common issues and how to solve them:

1. I can't create invoices in a period
   It's likely that the period has been marked as "Closed" or "Blocked." When a period is set to one of these states, all transactions, including creating new invoices, are restricted to preserve the integrity of the accounting records.
   ‍
2. Errors when defining a new period
   Make sure to define the period code, fiscal year start date, frequency, number of periods, and state correctly. Remember that the code must be unique, the fiscal year start date should align with your accounting cycle, the frequency should match how you want to divide your fiscal year (monthly, quarterly, etc.), the number of periods should correspond to the selected frequency, and the state defines the type of transactions that will be allowed.
   ‍
3. Incorrect state change of a period
   Changing the state of a period is a significant action that can affect the company's accounting. Ensure you fully understand the implications of changing a period to "Open," "Open without sales," "Closed," or "Blocked" before doing so.
   ‍
4. Deletion of a necessary period
   If you delete a period, you lose the ability to control transactions for that specific period. If you need to regain that control, you can recreate the period, but keep in mind that this process could be cumbersome if you need to do it frequently.
   ‍

Remember, if you encounter any issues or have questions about managing periods in Cashflow, you can always refer to our help section or contact our support team.