Year End GL Journal Financial Adjustments for Taxes and Other Reasons

[Chuck Boecking]

Hi Everyone,

I took an action yesterday to find the best way to make end of year financial adjustments. In the past, I would just re-open the last fiscal period, make my entries, then close the period again. If you want to get fancy, you can even create your own GL Journal document type for EOY entries.

The reason for the action is to determine the purpose of the Calendar, Year and Period window => Year tab => Period tab => Period Type field for the value of "Adjustment Period".

After testing and review of the code, the GL Journal has no way of using a period with a Period Type of "Adjustment Period". The way discussed in the first paragraph is the correct way to perform this action. 

For reference: It looks like the code just ignores the Period Type = Adjustment Period by hard coding the value to 'S'. (iDempiere MPeriod line:161)

For reference: trying to use an "Adjustment Period" in Financial Reports also throws an index out of bounds exception.

I do not know of a valid use case for Period Type = "Adjustment Period". Further comments, questions and suggestions are welcome.

Regards,

Chuck Boecking

erp-academy.chuckboecking.com

[Thomas Bayen]

Hi Chuck,

I see a valid usecase. :-) The posts from my normal business can be very
different from the year ending posts. For my cost and profit
calculations I am mostly intersted in my monthly numbers. E.g. I want to
know if my costs are the same in every month or if they are the same
than in the same month of last year or from one month to the next. A EOY
posting will destroy the series of months numbers I have. My jaunary
costs will not be comparable to the december costs. :-(

If you think about it the reason why this problem happens is that the
EOY postings just do not belong to the december. They are not connected
to my december business. So I think the belong to an period of its own.

That's why I like to have an adjustment period for postings that do not
belong to my "cost month" but to the fiscal year.

I did not try this out up to now but I thought that it works. I hope we
will get this running or I have to think about a workaround (by
filtering out the EOY posts in another way).

regards,
Thomas

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mit freundlichen Grüßen,

Thomas Bayen
--
Jakob Bayen KG, Bleichpfad 20-22, 47799 Krefeld
AG Krefeld HRA 416 Tel +49/2151/65 80 9-0

[Carlos Antonio Ruiz Gomez]

Chuck, as you pointed adjustment periods cannot be used by default, I have used them updating the period via SQL, but I think is a must to create a correct way to manage adjustment periods without SQL tricks.

I opened the ticket
https://idempiere.atlassian.net/browse/IDEMPIERE-2184
Implement correct usage for adjustment accounting periods

And attached a patch to allow usage of adjustment periods on GL Journals and Financial Reports.

I've used the updated financial report in custom implementations with success.

WDYT?

Regards,

Carlos Ruiz

--

[Chuck Boecking]

Carlos and Thomas,

That is very much appreciated. I will test and confirm before the end of this weekend. 

Regards,

Chuck Boecking

[Chuck Boecking]

Hi Carlos,

I successfully tested the patch on a brand new instance of iDempiere. Here were the details:

• I had to pull and update to the latest version of the 'development' branch. My 'release-2.0' and my 'development' from a week back would not accept the patch.
• I had to turn off automatic period control to simulate the end of the year posting. Otherwise, the adjustment period came back closed.
• After the above changes, both the GL Journal and the Financial Report behaved as expected

Thank you!!

Chuck Boecking

http://erp-academy.chuckboecking.com/

[Servit Info]

Hi Carlos and Chuck,

I've tried to apply the patch without success, error is "the files MJournal and FinReport don't exists" and then it creates a folder structure (a) as per the attachment.

When I revert the patch , it does the same and it creates another structure (b).

I've been able create the 13th period manually via SQL all works good (you must close the 12th period, otherwise when you save it switch automatically between the Dec-Adj and the Dec-normal), but when I run the Financial Report the system consolidated the data of the 12th with the 13th.

I'm supposing that this problem of financial report should be fixed by the patch.

How can I apply properly this patch and also , how do I apply the patch in a runtime environment?

Thanks

Regards

paolo

[Servit Info]

I forget to mention that I didn't use the patch attached to the post in the forum but the one published here https://idempiere.atlassian.net/browse/IDEMPIERE-2184

[Vassili Kouleshov]

You do not need to use this patch, it is already commited, check this

https://github.com/idempiere/idempiere/commit/94703678e93a69ed1e6615bc5b52d6ce8c71f08c

[Servit Info]

Hi Vassili Kouleshov, thanks to your post I've been able to better focus to the basic configuration and I've realized I've never selected "Adjustment Period" as PeriodType. 

This was the caused of the malfunctioning of the financial report.

Problem sorted.

Thanks a lot

Regards

paolo

[gos...@gmail.com]

Hi,

Been reading this thread but am not too sure whether there is a solution yet for this issue.

I have created a period 201913 (period 13) for my Year end postings. After the 'year end postings', the 'Income and Expense report' is somewhat 'messed up' as the period 12 activity figure have included the Y/E postings (ran report for the period 201912).

Rightfully, it should only take in period 201912 transactions and not 201913(adjustment) figures, even though the transaction dates are the same.

Also, ideally, report should also allow me to run as at 201913 also (if I wish to include the YE postings); this is currently not possible as there is an error period out of index.

Does anyone have any clue how to exclude the YE postings in my Financial reports?

regards

mc

[Carlos Antonio Ruiz Gomez]

Hi mc,

Which version are you using?  If you can reproduce the issue (error period out of index) in one of the test servers please let us know.

Regards,

Carlos Ruiz

Am 18.11.20 um 14:07 schrieb gos...@gmail.com:

[gos...@gmail.com]

Hi Carlos,

I was using v6.2. 

I have performed a test on the v7.1 test site and it seems that these issues (both the financial report and the period out of index) has been fixed in v7.1.

thanks & rgds

mc