What is Accounting period?
An accounting period is the span a set of figures covers, and closing it means no further entries may be posted into it. Locking a period is what makes a reported figure stay reported.
An accounting period is the span a set of figures covers, and closing it means no further entries may be posted into it. Locking a period is what makes a reported figure stay reported.
In Bangladesh
Because the VAT return is monthly, the month is the period that matters most in practice. Backdated entries after the return has gone in are one of the most common causes of a return that no longer matches the ledger.
An example
A VAT return is prepared on the tenth. On the eighteenth someone posts a backdated purchase into that month. The return and the ledger now disagree, and nobody finds out until the next audit.
In SORS ERP
SORS ERP supports accounting periods with period lock and close, so once a VAT return summary has been prepared for a month the entries behind it stop moving.
Also called
- In Bangla
- হিসাবকাল
- Also
- Period close
- Also
- period lock
Questions
Answered plainly, including where the answer is no.
Can a locked period ever be reopened?
Yes, with the right permission, and that is the point: reopening becomes a deliberate act with a record rather than something that happens by accident when someone picks the wrong date.
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