Many new users often find themselves confused about the distinction between these two. It is crucial for users to recognize the difference, as periods play a significant role in determining how transactions are posted.
The Manage Accounting Periods page is a list of all the accounting periods set up in your account and rolled up in the accounting period hierarchy to which they belong. Use this page to set up, view, and edit periods.
You can access the Period Close Checklist to lock, unlock, and close accounting periods. To see this page, go to Setup > Accounting > Manage G/L > Manage Accounting Periods:
Locking transactions for a period prevents users without override permission from posting to the period. It is also a preliminary task before closing occurs. Locking tasks include Lock A/P, Lock A/R, Lock Payroll (if the Payroll feature is enabled), and Lock All.
Users with Override Period Restrictions permission will still be able to enter and edit transactions. Non G/L impacting change can be done if the Allow Non G/L changes option is enabled:
Users can make changes to posting transactions that do not affect the general ledger when the Allow Non-G/L Changes box is checked on a period record. You must have the Setup permission Allow Non-G/L Changes to make these changes. Kindly note that these permission restrictions do not apply to the addition or editing of non-posting transactions.
On the other hand, closing a period is the final step. Closing an accounting period means changing its status from Open to Closed:
Making changes that affect the general ledger such as posting transactions in a closed period is not permitted. Even Administrators and roles with Override Period Restrictions permission are unable to post transactions in a closed period. The period must be reopened before any such changes can be posted. It is advisable to perform this action as the concluding step following a thorough review and reconciliation of accounts.