This is used to add information to define the opening and closing dates for which transactions can be posted to a particular financial period.
This encompasses the opening and closing of financial periods for the recording of transactions with a transaction date falling within the period. These dates will also be used in the production of financial reports.
These periods can be set up at the time of the scheme launch, and dates into the future can be created. They can also be updated and added to in the future, as required, without having to do a scheme update (by selecting Financial Period Calendar from the sub-menu on the left on the Scheme List screen.)
Financial periods are kept per calendar months, e.g. transactions for the calendar month of February 2003 will be kept in financial period 02/2003, regardless of when the financial year-end of the scheme is.
All transactions with a transaction date of 1 February to 28 February will fall into financial period 02. The effective date and due date can be outside of this period, i.e. these dates are not subject to the financial period rules in the same way as transaction date.
Opening balances are kept as at the first month of each financial year (the financial period for which the OPENING BALANCE REQUIRED indicator has been set). Income and expense account balances will be zero.
A history of all financial year-ends is kept, including the opening balances of each year. This is regardless of whether the financial year was short (less than 12 month) or long (more than 12 months) due to a year-end change at a specific point during the year.
From the JU1BH Scheme Update Type List screen, highlight FIN PRD CAL, and click .
The JU2BV Financial Period Calendar screen will be displayed.
To search for a financial period, click . The JU2DV Search Criteria screen will be displayed.
This can be used to display selected financial periods. All existing dates that are currently defined will be displayed.
Descriptions of the input fields on this screen appear below.
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Filter by values |
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Opening Balances Only |
Select the YES or NO radio button to indicate whether or not you want to select all of the accounting periods, or just the start of each financial year (opening balances). |
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Starting value |
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Financial Period |
The financial year-end date. The format must be MM/YYYY. This is the date up to which you want to view the accounting periods that have already been set up. This date can be in advance of the current date, depending on up to what date in the future the accounting periods have been set up. |
Click to save the information. If no dates have been defined yet, click .
The JU2BV Financial Period Calendar screen will be displayed.
Note:
When this screen is first selected, it is blank. There will usually only be existing records when an update is done subsequently (i.e. after the launch).
This screen displays the month of the financial period specified, as well as the months prior to this date. The system will display all financial period dates from the date of commencement of the scheme if this date is within the period.
To create additional financial periods, select Create Period Control Records from the sub-menu on the left.
The JU2DV Create Financial Period Control Records screen will be displayed.
Enter the date (MM/YYYY) up to which new financial periods must be created. This date must be greater than the scheme launch date (scheme effective date) or the last financial period created previously, and must be the scheme financial year-end (on the Scheme Details screen) plus 1 month. This is to ensure that the financial period for which the OPENING BALANCE REQUIRED indicator (see below) needs to be set, is created.
Example:
If the current financial period is set at 11/2003 (i.e. scheme year-end is 31/10), and you want to create future financial periods for the year following, then enter 11/2004 in the CREATE FINANCIAL PERIODS UP TO field. The JU2BV Financial Period Calendar screen will display the following:
If a date is entered in the CREATE FINANCIAL PERIODS UP TO field that is not up to the month of the next financial year start, then the following warning message will be displayed:
Click and enter an appropriate date.
If the Pooling Status field on the JU1BK Nature of Scheme screen for the scheme selected is SUB UMBRELLA, and the Apply Financial Periods to Sub-Funds field on the JU1BK Basic Scheme Data screen for the main fund to which the selected scheme is linked, is ticked (yes), once a date has been input and is clicked on the JU2DV Create Financial Period Control Records screen, an error message will be displayed.
Click and cancel the JU2DV Create Financial Period Control Records screen. Create the required financial period control records on the MAIN UMBRELLA scheme.
The various financial periods have now been defined.
To set the actual opening and closing dates and times for each of the financial periods, highlight a period on the JU2BV Financial Period Calendar screen and click . The JU2BV Financial Period Calendar Details screen will be displayed.
Descriptions of the input fields on this screen appear below.
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Open On Date/Time |
The earliest date that general authority levels can post transactions into this financial period. This applies by default to all batch / programmatically generated transactions. Format is DD/MM/CCYY and HH:MM:SS |
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Close On Date/Time |
The latest date that general authority levels can post transactions into this financial period. This applies by default to all batch / programmatically generated transactions. Format is DD/MM/CCYY and HH:MM:SS Note: Entries can still be passed into a provisionally closed period. This can be done by a user with the necessary access. It should be noted that these provisionally closed period figures might already have been provided to the auditors. |
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Cash Book Close On Date/Time |
The date after which transactions affecting the bank account cannot be passed into this financial period. This also applies to bank statement items captured via the bulk bank statement screen or the bank statement screen. |
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Member Close On Date/Time |
The period from the Close On Date/Time to the Final Close On Date/Time in respect of members is only open for the accountant of the scheme.
This field may only be used by The Accountant. When is clicked, the system will automatically enter the current system date and time into this field. Note: The Accountant refers to an authorized person acting as the accountant for the scheme.
Note: Only journals using accounting activities that create business transactions in only the Member ledger will be enabled with a Transaction Date less than a closed financial period but for which the member financial period is open.
For more information, refer to Processing of Member Close On Date/Time below. |
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Final Close On Date/Time |
The period from the Close On Date/Time to the Final Close On Date/Time is only open for the accountant of the scheme.
This field may only be used by The Accountant. When is clicked, the system will automatically enter the current system date and time into this field. Note: The Accountant refers to an authorized person acting as the accountant for the scheme.
For more information, refer to Processing of Final Close On Date/Time below. |
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Opening Balance Required |
Tick this box to indicate that an opening balance must be produced for this financial period. Note: This box may only be ticked for a period that is the start of the financial year. |
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Opening Balance Created On |
The date and time on which an opening balance was created (where the OPENING BALANCE REQUIRED box is ticked). |
Click .
Processing of Member Close On Date/Time
A separate financial period closing for member level transactions enables member accounts to be amended where there are mismatches to the fund assets.
Where member transactions have been processed incorrectly it is possible that there could be a mismatch between the fund’s assets and the member liabilities. If the financial period has been closed it is not desirable to re-open the financial period as backdated fund level transactions could incorrectly get posted during this period which would affect the accuracy of the financial statements. It is however still necessary to correct the member transactions for the closed period so that the member liabilities match the fund assets in cases where the mismatch is only discovered after the financial year has been closed.
It would be prudent to ensure that the asset and liability mismatches are resolved before the financial year is closed, however this is not always done and therefore the ability to correct the member transactions in the correct financial period is required.
Journals using accounting activities that create business transactions in only the Member ledger are enabled with a Transaction Date less than a closed financial period but for which the member financial period is open.
The member financial period close is not enabled if there are un-unitised transactions on the member’s accounts as at the financial period close date or there are negative member investment account balances as at the financial period close date.
When is selected for the Member Close On Date/Time field on the JU2BV Financial Period Calendar Details screen, the system will retrieve the monetary balances on the Members’ INVESTMEMB accounts and the unit balances on the Members’ INVSTMEMUNIT accounts per Portfolio and Income Type as at the Financial Period End Date. If a negative balance is found, the following error message will be displayed:
There are one or more negative balances on the members’ investment accounts or there are un-unitised transactions. The Member Close cannot be processed.
The system will retrieve the transactions in the Members’ INVESTMEMB accounts for Portfolios for which the Earning Allocation Basis on the Investment Medium is UNITISED and for which the value for Unitised Indicator is NO. If any transactions are found, the error message above will be displayed.
If there are no negative balances or un-unitised transactions, the current date and time will be displayed and the Member Close Date and Time will be updated on the applicable Financial Period record.
Processing of Final Close On Date/Time
When for the Final Close on Date/Time field is selected, the system will read the Member Close Date for the applicable Financial Period record. If it is null, the following warning message will be displayed with Yes and No buttons:
The final close has not been done for the Member ledger, do you wish to continue?
The JU2BV Financial Period Calendar screen will be re-displayed, showing the updated details.
Note:
The system will determine the financial period into which transactions are posted, based on the data defined for the financial period calendar scheme update type.
Accounting Activity Journals
When a transaction is captured and an Accounting Journal is processed and the Accounting Rules linked to the Accounting Activity selected contains only Business Transaction (BT) Types for which the Stakeholder is MEMBER, the system will read the Member Close Date on the Financial Period records for the fund. If the Transaction Date on the Journal being processed is less than or equal to the last day of a Financial Period for which the Member Close Date is not null the following error message will be displayed:
The financial period is closed.
If the Member Close Date for the applicable Financial Period is null, the system will read the Final Close Date on the Financial Period record and if it is not null the following warning message will be displayed:
The scheme financial period is closed do you wish to continue?
If the Accounting Rules linked to the Accounting Activity selected contains a BT Type for which the Stakeholder is FUND the Financial Period validation as per current process will be applied i.e. Scheme level business transactions will not be enabled for posting to a closed financial period.
When an Accounting Journal is authorised, the same validation as for the capture of transactions above will be applied, and if the Final Close Date (Scheme Close) is not null, the following warning message will be displayed:
The scheme financial period is closed do you wish to continue?
Bulk Journal Load
When a bulk journal file is processed and the Accounting Rules linked to the Accounting Activity selected contains only Business Transaction (BT) Types for which the Stakeholder is MEMBER, the system will read the Member Close Date on the Financial Period records for the fund. If the Transaction Date on the Journal being processed is less than or equal to the last day of a Financial Period for which the Member Close Date is not null, the file will not be processed and the following error message will be written to the error log:
File contains transactions for which the financial period is closed.
If the Accounting Rules linked to the Accounting Activity selected contains a BT Type for which the Stakeholder is FUND, the Financial Period validation as per the current process will be applied i.e. Scheme level business transactions will not be enabled for posting to a closed financial period.
The following error and warning messages are displayed by the system:
Input must match this pattern ….
This error message is displayed if the time component is not entered correctly in the field. Click and enter the correct time. Ensure that the time is defined as Hours : Minutes : Seconds.
Error – Open On date and time ….
This error message is displayed if the time component is earlier than the current date or clock time.
Click and enter the correct data.
Warning – The Open date for this period is earlier then the Open date of previous periods ….
This error message is displayed if the open date is changed to a date that is earlier than the open dates currently defined for previous periods.
Click to confirm that all earlier financial period dates (as far back as the last final close effected), must be changed to the new open date.
Click or to cancel the change.
Error – The Opening Balance required indicator may not be altered ….
This error message is displayed if the OPENING BALANCE REQUIRED box is ticked for a period that is not the start of the financial year.
Click , then untick the OPENING BALANCE REQUIRED box on the Financial Period Calendar Details screen, and click .
If the scheme’s financial year-end changes, this indicator can be de-selected for a financial period provided the opening balances as at the start date of the relevant financial period have not been created. The indicator can then be set to the financial period corresponding with the scheme’s new financial year-end month.
Warning - Financial periods are managed at the main fund level ……
This message is displayed if the Pooling Status field on the JU1BK Nature of Scheme screen for the scheme selected is SUB UMBRELLA, and the Apply Financial Periods to Sub-Funds field on the JU1BK Basic Scheme Data screen for the main fund to which the selected scheme is linked, is ticked (yes).
Click if you wish to change the previous Open and Close On dates.
A warning message will be displayed.
Click to close the financial period for this fund separately from that of the MAIN UMBRELLA scheme.
Click and amend the JU2DV Financial Period Calendar Details screen if you wish to close the financial period for this scheme at a MAIN UMBRELLA scheme level.
Error – The Financial Period calendar record does not exist for the Sub Scheme for the date captured.
This message is displayed where the financial periods for the main fund are also applied to a sub fund, and the same Open and Close dates defined for the main fund do not exist for a sub fund.
Click , then ceate a financial period calendar record in the sub fund for this date.
Click to close this update type.
The effect of financial period dates on transactions
For each transaction processed from either an automated batch or via the manual accounting transaction capture facility, the transaction date will be validated against the above parameters for the appropriate scheme.
The determination of the financial period follows the following rules:
- If a Close On date has been captured for a financial period:
- transactions created after the Close On date cannot be captured with a transaction date month and year less than or equal to the financial period, unless captured by The Accountant.
- transactions created after the financial period but before the Close On date can be created with a transaction date month and year less than or equal to that financial period but not less than or equal to the previous financial period with a Close On date.
- The effective date and due date can be less than or equal to the financial period with a Close On date, i.e. these dates are not subject to the financial period rules in the same way as transaction date.
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Once a
financial period has been finally closed, no transactions with a transaction
date month equal to that financial period can be created. Any entries, which have not yet been posted
before the Close On date, must be created with a transaction date equal to or
greater than the next open financial period.
Batch transactions will be automatically generated with a transaction date
equal to the current or next working day, and will not generate backdated
transactions.
In respect of manual transactions, a message will be generated to indicate that
the financial period is closed, and the transaction date must be amended.
- Accounting entries may be posted to the ledger within any current or future financial period, as long as the financial period has not been closed, and the date of creation is greater than or equal to the Open On date for that financial period.
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If a
financial period for the transaction date of the accounting transaction has not
been created, the transaction may be between the date of creation minus 1 day,
and creation date plus 6 days.
For example, on 01/01/2004, transactions can be created with a transaction date
from 31/12/2003 to 07/01/2004. This is
to validate that transactions are not future dated in error.
- The final closing of a financial period effectively closes all the financial periods prior to it.
Opening balances
Opening balances will be created as at the start date of the financial period for which the OPENING BALANCE REQUIRED indicator has been set. The opening balances will be created when the first accounting transaction is created with a transaction date equal to or greater than this financial period. If transactions are created with a transaction date equal to a prior open financial period, the opening balance will be adjusted.
If the financial period has not been created at the time that the first accounting transaction is created, the opening balance will be created when a subsequent transaction is created after the financial period has been created with the OPENING BALANCE REQUIRED indicator set.