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Overview

Fiscal periods divide the fiscal year into manageable accounting periods. Accountability supports:
  • 12 regular periods (typically monthly)
  • 1 adjustment period (Period 13) for year-end adjustments
  • Period status tracking (Open, Closed)
  • Period locking for compliance and control
Fiscal periods are company-specific. Each company defines its own fiscal year end, and periods are automatically generated based on that date.

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Fiscal Year Data Model

packages/core/src/fiscal/FiscalYear.ts
export class FiscalYear extends Schema.Class<FiscalYear>("FiscalYear")({
  id: FiscalYearId,
  companyId: CompanyId,
  name: Schema.NonEmptyTrimmedString,
  year: Schema.Number,  // e.g., 2025
  startDate: LocalDate,
  endDate: LocalDate,
  status: FiscalYearStatus,
  includesAdjustmentPeriod: Schema.Boolean,
  createdAt: Timestamp,
  updatedAt: Timestamp
})
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year
number
required
The fiscal year number (2025, 2026, etc.) - named after the calendar year in which the fiscal year ends
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startDate
LocalDate
required
First day of the fiscal year (calculated from fiscal year end)
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endDate
LocalDate
required
Last day of the fiscal year (from company’s fiscal year end setting)
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status
FiscalYearStatus
required
Current status: “Open” or “Closed”
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includesAdjustmentPeriod
boolean
required
Whether Period 13 exists for year-end adjustments

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Fiscal Period Data Model

packages/core/src/fiscal/FiscalPeriod.ts
export class FiscalPeriod extends Schema.Class<FiscalPeriod>("FiscalPeriod")({
  id: FiscalPeriodId,
  fiscalYearId: FiscalYearId,
  periodNumber: Schema.Number,  // 1-13
  name: Schema.NonEmptyTrimmedString,
  periodType: FiscalPeriodType,
  startDate: LocalDate,
  endDate: LocalDate,
  status: FiscalPeriodStatus,
  closedBy: Schema.OptionFromNullOr(UserId),
  closedAt: Schema.OptionFromNullOr(Timestamp),
  createdAt: Timestamp,
  updatedAt: Timestamp
})
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periodNumber
number
required
Period number within fiscal year (1-12 for regular periods, 13 for adjustment)
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periodType
FiscalPeriodType
required
“Regular” (1-12) or “Adjustment” (13)
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status
FiscalPeriodStatus
required
Current status: “Open” or “Closed”

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Period Types

packages/core/src/fiscal/FiscalPeriodType.ts
export const FiscalPeriodType = Schema.Literal("Regular", "Adjustment")
Standard monthly accounting periods
  • Correspond to calendar months (or fiscal months)
  • Used for normal business transactions
  • Typically opened at start of month, closed at end
Examples:
  • P1 (January 1-31 for calendar year)
  • P12 (December 1-31 for calendar year)
Mandatory Period 13: All companies must have Period 13 for year-end adjustments. The includesAdjustmentPeriod flag on fiscal years is always true.

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Period Status

packages/core/src/fiscal/FiscalPeriodStatus.ts
export const FiscalPeriodStatus = Schema.Literal("Open", "Closed")
1

Open

Period accepts new journal entries
  • Users can create, edit, and post entries
  • Normal operations allowed
2

Closed

Period is locked - no modifications allowed
  • Cannot create new journal entries
  • Cannot edit or delete existing entries
  • Cannot reverse posted entries
  • Requires “Reopen Period” permission to unlock

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Period Close Workflow

1

Review Period Activity

Verify all transactions are recorded and balanced
  • Run trial balance report
  • Review outstanding items
  • Reconcile bank accounts
2

Post Adjusting Entries

Record any period-end adjustments
  • Accruals and deferrals
  • Depreciation
  • Corrections
3

Close Period

Change period status from Open to Closed
  • Records closedBy (user ID)
  • Records closedAt (timestamp)
  • Period becomes read-only
4

Open Next Period

Open the following period for new transactions
  • Period 1 opens Period 2
  • Period 12 opens Period 13 (adjustment)
  • Period 13 close finalizes the fiscal year

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Fiscal Period Reference

Journal entries reference fiscal periods using FiscalPeriodRef:
packages/core/src/fiscal/FiscalPeriodRef.ts
export class FiscalPeriodRef extends Schema.Class<FiscalPeriodRef>("FiscalPeriodRef")({
  year: Schema.Number,   // 2025
  period: Schema.Number  // 1-13
})

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Helper Methods

const ref = FiscalPeriodRef.make({ year: 2025, period: 3 })

ref.isRegularPeriod       // true (1-12)
ref.isAdjustmentPeriod    // false (period !== 13)
ref.toString()            // "FY2025-P03"
ref.toShortString()       // "2025.03"

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Period Navigation

import { nextPeriod, previousPeriod } from "@accountability/core/fiscal/FiscalPeriodRef"

const p3 = FiscalPeriodRef.make({ year: 2025, period: 3 })
const p4 = nextPeriod(p3)       // { year: 2025, period: 4 }
const p2 = previousPeriod(p3)   // { year: 2025, period: 2 }

// Wrap at year boundary
const p12 = FiscalPeriodRef.make({ year: 2025, period: 12 })
const p1_2026 = nextPeriod(p12)  // { year: 2026, period: 1 }

// Period 13 handling
const p13 = FiscalPeriodRef.make({ year: 2025, period: 13 })
const next = nextPeriod(p13)      // { year: 2026, period: 1 }
const prev = previousPeriod(p13)  // { year: 2025, period: 12 }

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Period Ordering

import { isBefore, isAfter, equals } from "@accountability/core/fiscal/FiscalPeriodRef"

const p1 = FiscalPeriodRef.make({ year: 2025, period: 1 })
const p2 = FiscalPeriodRef.make({ year: 2025, period: 2 })

isBefore(p1, p2)  // true
isAfter(p1, p2)   // false
equals(p1, p1)    // true

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Period 13 (Adjustment Period)

Period 13 is a mandatory adjustment period for year-end entries:
Why Period 13?After closing Period 12 (December), accountants often discover:
  • Audit adjustments
  • Late vendor invoices
  • Tax accruals
  • Final depreciation entries
Period 13 provides a “staging area” for these adjustments without reopening P12.

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Using Period 13

1

Close Period 12

Lock the final regular period
  • All normal business activity is complete
  • Regular month-end close performed
2

Post to Period 13

Record year-end adjusting entries
  • Entry type: “Adjusting”
  • Transaction date: Fiscal year end date
  • Fiscal period: Year 2025, Period 13
Note: Transaction date remains fiscal year end (e.g., Dec 31), but fiscal period is 13
3

Close Period 13

Lock adjustment period
  • Finalizes the fiscal year
  • No further adjustments allowed
4

Open Next Fiscal Year

Open Period 1 of FY2026
  • Begins new fiscal year
  • Carries forward balance sheet balances

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UI Workflow for Period 13

When creating a journal entry with a transaction date on the fiscal year end:
packages/web/src/components/forms/JournalEntryForm.tsx
{canPostToAdjustmentPeriod && (
  <div>
    <label>
      <input
        type="checkbox"
        checked={useAdjustmentPeriod}
        onChange={(e) => setUseAdjustmentPeriod(e.target.checked)}
      />
      Post to adjustment period (P13)
    </label>
    <p>Use for year-end adjustments and audit entries</p>
  </div>
)}
Period 13 Restrictions:
  • Only available when P12 is closed and P13 is open
  • All entries must use entry type “Adjusting”, “Closing”, or “Revaluation”
  • Do not post regular business transactions to P13

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Period Reopening

Closed periods can be reopened with proper authorization: 
// Reopen audit entry
interface PeriodReopenAuditEntry {
  id: PeriodReopenAuditEntryId
  periodId: FiscalPeriodId
  reason: string
  reopenedBy: UserId
  reopenedAt: Timestamp
  previousStatus: FiscalPeriodStatus
}
1

Authorization Check

User must have “Reopen Closed Period” permissionTypically restricted to Controllers or above
2

Provide Reason

Required justification for reopeningExample: “Discovered unrecorded invoice #12345”
3

Reopen Period

Period status changes from Closed → OpenAudit entry created with reason and user
4

Make Corrections

Post correcting entries
5

Re-Close Period

Close period again after corrections
All period reopen events are logged in the audit trail with:
  • Who reopened the period
  • When it was reopened
  • Why it was reopened
  • Previous status
This maintains compliance and accountability.

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Fiscal Period Assignment

Journal entry fiscal periods are automatically computed from the transaction date and company fiscal year end:
packages/web/src/components/forms/JournalEntryForm.tsx
function computeFiscalPeriod(
  dateStr: string,
  fiscalYearEnd: FiscalYearEnd
): ComputedPeriod {
  // Determines fiscal year
  // Calculates period number (1-12) based on months from FY start
  // Returns computed period
}

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Calendar Year Example

Company with December 31 fiscal year end:
Transaction DateFiscal YearPeriod
Jan 15, 20252025P1
Jun 30, 20252025P6
Dec 31, 20252025P12

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Non-Calendar Year Example

Company with March 31 fiscal year end:
Transaction DateFiscal YearPeriod
Apr 1, 20242025P1
Dec 15, 20242025P9
Mar 31, 20252025P12
Apr 1, 20252026P1
Fiscal year is named after the calendar year in which it ends. A fiscal year ending March 31, 2025 is “FY2025”, even though it starts in April 2024.

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Period Validation

When posting journal entries, the system validates:
The fiscal period must exist for the company✓ Valid: Posting to P3 FY2025 when period exists ✗ Invalid: Posting to P5 FY2026 when FY2026 hasn’t been created yet
The period status must be “Open”✓ Valid: Posting to open period ✗ Invalid: Posting to closed period (returns error)
Transaction date must fall within period date range (except P13)✓ Valid: March 15 posting to P3 (March period) ✗ Invalid: March 15 posting to P4 (April period)Exception: P13 allows any date on fiscal year end

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Period Deadlines

Organizations often set internal deadlines for period close:
Target: 5-7 business days after month end
  • Day 1-3: Transaction review and reconciliation
  • Day 4-5: Adjusting entries and accruals
  • Day 6-7: Period close and reporting

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Best Practices

Before closing each period:
  1. Reconciliations: Bank, credit card, intercompany
  2. Accruals: Recognize expenses/revenues earned but not invoiced
  3. Deferrals: Defer revenue/expenses to future periods
  4. Depreciation: Record monthly depreciation
  5. Trial Balance: Review account balances for anomalies
  6. Management Review: Controllers review before close
DO use P13 for:
  • Audit adjustments
  • Reclassifications discovered after P12 close
  • Final tax accruals
  • Year-end depreciation adjustments
DON’T use P13 for:
  • Regular business transactions
  • Anything that should have been in P1-P12
  • New fiscal year activity (use P1 of next FY)
Establish clear policies:
  1. Authorization: Who can approve reopening? (Controller, CFO)
  2. Documentation: Required justification and supporting docs
  3. Timeline: How far back can periods be reopened?
  4. Notification: Inform accounting team when periods reopen
  5. Re-close: Set deadline for corrections and re-close

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