Future vs Open AP Periods

[Dinesh]

Hi All,
We are planning to open future period for sigle to to create future payments. We are not sure what impact its going to make. Could some functional guy give insign to these questions.

1) Should we open FUTURE or OPEN future period (you have both options in AP ledgers.
2) If I confirm payment batches with future payment date, what impact its going to make on accounting/gl etc ?

Any other impact ?

PS : I am a technical guy . I do not know all the terms. Please be descriptive with your answers.

Many Thanks
Dinesh

[akrao]

Hi we canot enter an invoice without open a period. if you want to the payment in future at that you suppose to enable a check box futuredated payment.

Regards
AKRAO

[hbabhu]

Hi Dinesh,

You can close the Accounting period in separately payable and receivable

But future period you determine in set of book at the time of creating SOB..
Period status are as follow ..

Open- open period all the transaction should be performed ..
Close-only reporting and enquiry is aviable but not posting entry?
Future period-entry is allowed but posting is not allowed, actually this type of transaction those period can be entered in to the system but posting can be done only when the period belongs to open

This status indicate the period not open..
Never open- once close it?s closed forever u can?t be revert back to
old status i.e open ,close

You can change period status using concurrent process to open or close period?.


Hope this will help u

[surya_prabha]

Mr. Dinesh

Inorder to enter an invoice you must open the period.

the period status and their impact:

1.open: entering,creating a/c'ng,posting can be done
2.close: you can't enter untill you re-open the period
3.future: entering create a/c'ng but you can't post(GL) unless You use SWEEP programme
4.Permanently closed : You can't re-open

IF You use Future dated Payment follow the steps:

1. create an account in your GL (account segment)

2. decide when you want to relieve your liability

3.select the option (payable) to retrive the futuredated account

4. prepare the bank document with Future dated payment allowed/manadatory

Accounting Entries:

1. AP liability Dr
Futuredated payment Cr

2.Future dated payment a/c Dr (On Maturity)
Cash / Cashclearing a/c Cr

3. Cash Clearing a/c Dr
Cash Cr (Clearing)


Regards
Surya

[Dinesh]

Thanks all for reply...