Financial people know that the end of the year closing time is a hectic period with many things to remember how to do. This becomes a bit difficult when you do some of these tasks only once a year! We are going to talk about how to set up new posting periods to account for the coming year's financials.
You will most likely start to run into this issue in November or so depending on how your payment terms are setup. If you have customers that have NET60+ terms, you will not be able to add A/R invoices to the system if the due date falls in a range with a non-existing posting period. So let's get started!
Adding New Posting Periods
Navigate on the SAP Business One main menu to:
Administration -> System Initialization -> Posting Periods
In the lower right hand corner of the posting period form you will see a button called "New Period". Click the button to bring up the add new posting period window. When it comes up the settings are always blank ready for you to set your company's posting periods.
Our recommendation is to set your periods by month. SAP Business One can set them up on a range of choices to accommodate businesses with different requirements.
The period code and period name fields both append whatever you type in here to the beginning of the posting periods once generated. For example, we like to type in FY + the year such as "FY2016". Make sure the fiscal year field is populated with the year you are creating posting periods and the to/from dates are correct. Click add to generate the posting periods.
SAP Business One will then use your indicated settings to automatically create the periods.
Final Thoughts on Posting Periods
Please take care in adding posting periods as they cannot be removed once transactions are posted to them. You may, however, rename them at any time. Be sure to decide on a period structure like year, month, or day and stick with your decision.
If you have messed up the process and would like to have another chance, you can remove them. Click on the golden arrow in the posting periods window next to the posting period you want to remove. Right click the form and select remove. Do this for every period you'd like to remove and you can start over with different settings.