It is when the debits and credits are not equalor do not offset that your books don't balance. In fact, if you can gaineven a basic understanding of debits and credits, you will be wellon your way to understanding your entire accounting system.Īs outlined above, for every debit, there should be an equal andoffsetting credit. The system used in recording entries on a general ledger iscalled a system of debits and credits. When you sell goods on account, you record a sale(income) but must have a journal entry to make sure you collectthat account later (an account receivable). And that makessense, because for every financial transaction in your business,the money (or commitment to pay) goes from one place to another.For instance, when you write your payroll checks, the money flowsout of your payroll account (cash) into the hands of your employees(an expense). Other examples of source documents include canceledchecks, utility bills, payroll tax records and loan statements.Īll general ledger entries are double entries. And yoursource documents are a required component for your accountant attax time. Your source document will prove otherwise. Forinstance, a customer might claim that he never received an invoicefrom you. Source documents are critical inthat they provide an audit trail in case you or someone else has togo back and study financial transactions made in your business. Two examples of source documents are copies of invoicesto customers and from suppliers. For the campus at large, closing procedures will be completed in June (Period 12) in KFS.įor more information, visit the Fiscal Year End Page.An important component of any general ledger is sourcedocuments. The University of California, Irvine is required to comply with deadlines established by the Office of the President. Fiscal Period 12 has an extended close date - to be announced when fiscal year-end close approaches - allowing additional time to make appropriate adjustments, accruals, and deferrals. All income and expense must be accurately recorded in their correct accounts and all accounts must close in a solvent condition. The University’s fiscal year ends on June 30 and all accounts must reflect the correct financial transactions for the fiscal year. For the campus at large, all closing activities should be completed before the end of Period 12. Period 13 is reserved for Central Accounting to process transactions in preparation for reporting to the University of California, Office of the President. Fiscal Period ‘CB’ is short for C&G Beginning Balances is a special period to carry forward the balances for Contracts & Grants/Inception to date funds from the previous fiscal year. Periods BB and CBįiscal Period ‘BB’ stands for Beginning Balances is a special period for previous year carry-forward activity for the new year, and initial budgets. The document must be finalized on the Fiscal Period Closing Date for it to post to the previous period. Fiscal Year 2023-24 Periods and Closing Dates Fiscal Yearĭuring the days after the month has ended, but the previous period is still open, documents that are eligible to post to the previous period will have a dropdown selection to post to either the previous period or the current period. For example, a general error correction (GEC) could be posted to the September Fiscal Period as late as Oct. During these five days, some (but not all) transactions can be posted to the closing period. Most fiscal periods - except for special periods like BB and CB - include five working days after the month has ended. Twelve of these periods simply represent the 12 months of the year, but three other special periods exist: Beginning Balances (BB), C&G Beginning Balances (CB), and Period 13. There are a total of 15 fiscal periods to which General Ledger entries can be posted. Each fiscal year is further broken down into segments called "fiscal periods." Continue to reading more about how these fiscal periods work at UCI. For example, Fiscal Year 2024 runs from J– June 30, 2024. Because the fiscal year straddles two different calendar years, the calendar year and fiscal year will not always match. At UCI, the fiscal year begins on July 1 and ends on June 30.
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