In accounting, an adjustment period refers to a specific time frame during which various accounting adjustments and corrections are made to ensure the accuracy of financial statements. By designating a single adjustment period to cover multiple quarters within different accounting periods, businesses can simplify their accounting processes and improve overall efficiency.
For that, we will need to create a single adjustment period for the month Jan – Mar 2023 and associate two fiscal periods in a single one. For example, Firstly, select the Fiscal Calendar Jan – Dec Fiscal Calendar and chose the sub period Q1 2023. After clicking the add button select the Fiscal Calendar Apr – Mar Fiscal Calendar and chose the sub period Q4 2022. It is very important to choose the right quarters in this method.
In terms of reporting, when the fiscal quarter is chosen, the report will display the corresponding months within that quarter, streamlining the report generation process. For instance, selecting ‘this fiscal quarter’ would showcase the report from October to December (given the current date of October 31).
When examining the comparison of quarters for the current year, the report will adhere to the Apr – Mar Fiscal Year if the subsidiary with that particular calendar is selected. For the consolidated Parent Subsidiary, the report will reflect the Fiscal calendar designated for the Parent subsidiary.
For comparison reports across different subsidiaries, the fiscal year displayed will correspond to the chosen subsidiary in its respective context. In the case of a consolidated subsidiary, the report will align with the fiscal year of the parent subsidiary.