Period Locking Stabilizes Your Financial Reporting

Users sometimes complain that a financial statement from two months ago no longer is the same when they pull it up again in Sage 100 Contractor.  This can be quite disconcerting and can invite questions about the accounting department’s competence and the software’s reliability. 

What typically has happened is that someone came across a payable invoice or some other transaction dated two or more months ago and posted it in the system in the period it should have been recorded, even though financial statements for that period have been published to stakeholders (owners, managers, bankers, bonding companies, taxing authorities, etc.).

Users too often overlook the ability to Lock accounting periods to prevent the posting of transactions to past accounting periods.  If a responsible user using the Supervisor log in clicks on any accounting period selection icon, the Open Access and Lock Access buttons are evident near the top of the selection window.  With the period to be locked highlighted, click on the Lock Access button and the status of the period will change from Open to Locked.  When a period is locked, no user will be permitted to post a transaction to that period.  If a valid reason arises to post a transaction to a previously locked period, Supervisor can change that period’s access status to open by revisiting any accounting period selection icon, highlighting the correct period, and clinking on the Open Access button.  (Remember to return the status to Locked after the need for Open status has passed.)

I strongly encourage users to Lock Access to period 00-Prior Year as soon as their outside accountants have received the information they require for preparing financial reports and tax returns.  This will prevent changes in that information which the accountants are relying upon to perform their duties.  When the outside accountants have completed their work, any adjusting entries they provide can be posted to Period 00 after Supervisor temporarily unlocks the period.

I also suggest that future periods be locked temporarily, particularly right after the General Ledger closing, to prevent inadvertent posting of prior year December transactions (which should be posted to Period 00) to the current year December (Period 12 of the current year).