We can create adjustment periods like start date and end date in the same accounting period. Adjustment periods are created to post the adjustment entries on a quarterly or yearly basis. The start date of the adjustment periods should be the second date of the period (March 2, June 2, September 2, December 2). Otherwise, the adjustment periods will be automatically closed when we close the normal periods. . Quarterly adjustment periods must overlap existing base (non-adjustment) accounting periods.
For example, we can create the adjustment periods by quarter like below,
- Q1 Adjustment period – From March 2 to March 31 or dates within this range.
- Q2 Adjustment period – From June 2 to June 30 or dates within this range.
- Q3 Adjustment period – From September 2 to 30 or dates within this range.
- Q4 Adjustment period – From December 2 to 31 or dates within this range.
We have to consider the below points when we create quarterly adjustment periods:
- We can post journal entries to the adjustment periods on a quarterly basis. The Q1 adjustment period created in March can be closed only after closing the January and February periods and also before the closing of March (It will be according to the date provided in the adjustment period. If the date is only March 31, then we have to close the adjustment period first. Or if the date is from March 2 to 31, we can close the March period first).
- The quarterly adjustment periods cannot be created like the first day to the last day of the quarter. The date range should be within the same period (Q1 Adjustment period should be from March 2 to March 31 or dates within this range).
- We can post any type of journal entries (Standard journals , Intercompany journals and advanced intercompany journals) to the adjustment period and to any date.
- We can update the consolidated rates for the quarterly adjustment periods (Except for elimination subsidiaries and derived rates. Derived rates are the consolidated rates to the second level or third level parents. The system will automatically calculate it according to the consolidated rates to first level parents. These rates are not editable).
- In the reports, when we select the accounting period like “March”, it will show the entries in march. To get the entries posted to the adjustment period, we have to select “Q1 Adjustment period” to “March” in the report.
- We can create adjustment periods in the closed periods. These adjustment periods will be automatically closed as its related periods are closed.
- When we run the period close task in the March 2021 period, it will also consider the entries in the adjustment period. Netsuite recommends not running the period close tasks in the adjustment periods as it will create duplicate entries.
- Reversal journals are posted to the periods according to the date we have selected in the source journal entries for the reversal date field. We cannot edit the reversal journal entry.