In NetSuite, a locked period refers to an accounting period that has been closed or restricted to prevent further changes or transactions. This is a feature in NetSuite’s Accounting Periods Management that helps maintain financial accuracy and ensures that finalized financial statements are not inadvertently altered.
Key Characteristics of Locked Periods:
Prevent Transactions: Users cannot post new transactions or modify existing ones dated within the locked period.
Maintain Data Integrity: Ensures the accuracy of reports and financial statements for that period.
Granular Control: Permissions can allow specific users (e.g., accountants or auditors) to override the lock if necessary.
Types of Locked Periods:
Soft Lock (Closed Period): Users cannot post new transactions, but administrators or users with special permissions might still make changes.
Hard Lock (Locked Period): No changes are permitted, even by users with administrative privileges, unless the period is manually reopened.
To lock an accounting period:
Navigate to Setup > Accounting > Manage G/L > Manage Accounting Periods.
Select the desired accounting period.
Change its status to Closed or Locked as required.
When to Use Locked Periods:
After completing month-end or year-end reconciliations.
Once financial statements for the period are finalized.
To ensure compliance with accounting standards and auditing processes.