Baan/LN Tip of the Week: Closed, Final Closed, Provisional Close – What’s The Difference?
Fiscal, Reporting and Tax Periods can have status Open, Closed or Final Closed. If a period is Closed or Final Closed, you cannot post entries to those periods. If a period is Closed, you can re-set it to Open and post entries. If a period is Final Closed, you cannot post and you cannot set it back to Closed or Open.
A Provisional Close is run at year-end to bring the balances forward for the new year without having to close the previous year. A Provisional Close can be run as many times as you like. After a Final Close, a Provisional Close cannot be run.
The Provisional Close allows you to continue into the new year with all financial reporting and not have to rush with the Final Close until all adjusting entries are made and any final signoffs have been completed.