📍 Where to find this module?
Main menu > Finances > Fiscal years
Introduction #
The Accounting periods module allows you to define your company’s accounting periods. Each period defines a timeframe (generally 12 months) during which accounting entries are recorded. It is accessible via Finance > Accounting periods.
The accounting period is a fundamental element of accounting: it determines the period over which financial statements are prepared and governs the generation of accounting entries.
1. Create an accounting period #
Click Add a period from the module list.
Information to provide:
- Name: the label of the period (e.g., “Period 2025”)
- Start date: the first day of the period
- End date: the last day of the period
- Status: the period’s status (active or closed)
- Exchange rate for accounting: the type of exchange rate used for entries in foreign currency
- Exchange rate for inventory valuation: the rate used to value inventory at the end of the period
Important: Only one accounting period can be active at a time. Make sure to close the previous period before activating the next one.
2. Period lifecycle #
| Status | Description |
|---|---|
| Active | The current period. Accounting entries are recorded in this period |
| Closed | The period is finished. No new entries can be added to it |
Important: If you record a document whose date corresponds to a closed or non-existent period, Kafinea warns you that no accounting entries will be generated. You can choose to continue or cancel the recording.
3. Cash accounting #
Each period has a Cash accounting option that lets you switch between two accounting modes:
- Accrual accounting (default): entries are recorded on the date of the triggering event (issuance of the invoice)
- Cash accounting: entries are recorded on the date of actual receipt or payment
For more details, see the page Cash accounting.
4. Frequently asked questions #
Does my accounting period have to match the calendar year?
No, a period can start and end on any date. Some companies have offset periods (e.g., from April 1 to March 31). The standard duration is 12 months, but the first period may be shorter or longer.
What happens if I forget to create a period?
Documents will be recorded normally, but no accounting entries will be generated for dates not covered by an active period. Kafinea displays a warning in this case.
Can I reopen a closed period?
Technically, the status can be changed. However, reopening a closed period should remain exceptional and be done with caution, as it may impact financial statements that have already been produced.