EGL:Yearend Closing Process Considers Adjustment Entries Irrespective of Journal Date. (Doc ID 2896716.1)

Last updated on SEPTEMBER 22, 2022

Applies to:

Goal

Question 1:

In the system, the calendar is setup from January to December.  Creating adjustment journal in January with below details:

Example:

  - Journal Date = 01-Jan-2023
  - Fiscal Year = 2022
  - Accounting Period = 998
  - Journal Amount = $200,000.

and, running the yearend closing process for Fiscal Year 2022, yearend Closing process considers adjustment entries irrespective of journal date.
Adjustment Journal amount ($200,000) is considered in opening balance of new Fiscal Year (Fiscal Year = 2023 and Accounting period = 0).

Is this an expected behavior of Year End Closing process to consider adjustment entries on the basis of Fiscal Year and Accounting Period irrespective of journal date?

Question 2:

Consider accounting period are open from 01/01/2022.
The adjustment Fiscal Year and Accounting Period values stamped on open accounting period setup are:
  - Fiscal Year = 2021
  - Accounting Period = 998

Now, system is not allowing to post non-adjusting entry for journal date 12/31/2021 and throws error:

However, it allows to create and post adjusting journal entry for journal date 31st December 2021.

Request to provide GL functional/business scenario where it is not validating journal date for adjusting entries and it is allowing to create and post journal with below details:
  - Journal Date - 01/01/2022 or 12/31/2021
  - Adjustment FY - 2021
  - Adjustment AP - 998

Or this is a bug where system is not validating FY based on Journal Date for adjusting entries ?
 
Question 3:

Why a validation is not present on journal date for 998 adjustment journals like what is there for non-adjusting entries?
Is there any business scenario for which validation is not kept on journal date for adjusting entries ?
 

Solution

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