A fiscal year is divided into periods, usually twelve months (some companies use 4-4-5 week calendars or add a thirteenth adjustment period). Every entry’s posting date falls into one period. Periods have a status: open (anyone with permission can post), soft-closed (only people who can close periods may post) and closed (nothing posts).
Many construction systems track status per module, so AP can close before the GL does.
Why it matters
Period control is what makes issued numbers stay issued. Without it, a late bill dated last month quietly changes a WIP you already sent to the surety.
Worked example
September is closed for AP but open for the GL. A bill dated September 30 arrives on October 4: it’s refused for September, or, with a roll-forward policy, posts on October 1 while keeping its September document date for aging.
Common mistakes
- Fiscal year not matching the tax year without a reason.
- Reopening periods without a record of why.
How os.construction handles it
In the accounting preview, each period has a status per module, closed periods are enforced by the database as well as the app, and reopening requires a reason that’s audited. See Close the month.