The periodization functionality allows you to provide the necessary parameters when entering the original document, so that a periodized transaction is created immediately after the document is confirmed.

Periodization is based on two rules: monthly periodization and daily periodization.

With monthly periodization, the period is divided into exact months and therefore all periodized parts have an equal amount. Monthly periodization applies if the formula periodization end day + 1 = periodization start day holds, i.e. the periodization period can be divided into full months. Examples of such periods:

Example A. 01.02.2019-31.01.2020 (31st + 1 = 1st day) – the period is divided into exactly 12 months; Example B. 20.02.2019-19.12.2019 (19th + 1 = 20th day) – the period is divided into exactly 10 months ⇒ (01.03 to 30.11 = 9 months) + (20.02 to 28.02.2019 = 1/3 month) + (01.12 to 19.12.2019 = 2/3 month) = 10 months.

If the periodized amount is 300 EUR, the amount per period in example A is 300 EUR / 12 months = 25 EUR, and all periods get the same amount. In example B, the amount per period is 300 EUR / 10 months = 30 EUR. Each month from 01.03 to 30.11.2019 gets 30 EUR (i.e. 9 × 30 EUR). The periods 20.02-28.02.2019 and 01.12-19.12.2019, which together form one additional month, share 30 EUR so that the first period gets its share in proportion to the days of that month falling within the period, based on a 30-day month ⇒ 30 / 30 × 20 days = 20 EUR. The last partial month gets the remainder of the periodization, i.e. 300 - 270 - 20 = 10 EUR.

Daily periodization applies if the period cannot be divided into full months, i.e. the rule periodization end day + 1 = periodization start day does NOT hold.

To periodize purchase invoices automatically, tick Purchase invoice in the setting Settings > System settings > Finance settings > Automatic Periodization.

Then enter the periodization period on the purchase invoice (columns start and end).

Example:

Transaction:

The corresponding account must be filled in on the account that is periodized.

If the periodized expense account needs different objects/projects than the corresponding (prepaid expenses) account, enter the objects of the corresponding account in the Corr.object field and the projects in the Corr.project field.

Example:

Transaction:

Periodization abort is intended for reversing part of a periodized transaction if the circumstances or terms of the transaction change. For example, an insurance contract whose costs were periodized is terminated and part of the money is refunded to the policyholder.

One way to abort a periodization is to edit the periodized transaction and change its end so that it reflects reality (turning the costs of the periods for which the transaction was terminated into a receivable). However, this may not be the best way, and it is not possible at all if the restriction on changing transactions of original documents is enabled in the user rights (this restriction is strongly recommended).

An alternative and better method is to use the periodization abort functionality on the purchase invoice.

System settings → Finance settings → Automatic Purchase Invoice Periodization Abort Account lets you enter the account to which the aborted amount is posted. A receivables account is usually used in this situation. For better control, it is recommended to create a separate asset account, e.g. “Aborted periodizations”. After the periodization abort, the amount to be refunded remains on this account. When the amount is later received in the bank account, it is recorded with a separate transaction (D Bank; C Aborted periodizations). Filling in this setting is not mandatory but offers convenience – the periodization abort can also be carried out by entering the account during the transaction.

Periodization abort can be applied to a confirmed purchase invoice that uses automatic periodization. Use Table settings to display the fields needed for the abort:

• Abort date - periodization abort date. It can be any date within the original periodization period, i.e. it does not have to be the end of a month etc. The abort date cannot be in a closed period.
• Abort amount - the amount to be refunded after the periodization abort.
• Abort account - the account to which the remaining periodization amount is posted. It is filled in automatically if the system setting mentioned above is set. Regardless of that, it can be changed on the document.

All these fields must be filled in for the periodization abort to take place. Once the fields are filled in, click Save on the document to complete the abort. As a result, the abort data is saved on the document row and the part of the document transaction concerning the abort is changed.

Example. Aborted periodization, purchase invoice

Example. Aborted periodization, transaction:

Attention:

• The abort date cannot be in a closed period
• The periodization abort requires the right to change a confirmed purchase invoice

It may happen that the object on a periodized purchase invoice has to be changed in the middle of the period. For example, the user of a car, who is described as an object, changes, and from that date the costs have to be allocated to the new object – this is what the object/project change function is for.

Use Table settings to display the fields needed for the change:

• Abort date - the date from which the object/project changes.
• Abort object - the object to which the expense is periodized from the abort date onwards.
• Abort project - the project to which the expense is periodized from the abort date onwards.

Once the fields are filled in, click Save on the document to complete the change. As a result, the purchase invoice transaction is changed and an additional row is added to the purchase invoice.

Example. Changing the periodized object, purchase invoice

Before saving the purchase invoice:

After saving the purchase invoice:

• The original row changes – its amount is corrected and the change is entered in the Abort amount field.
• An additional row is created which, compared to the original row, has the new object, a corrected amount, and a start date that is the day after the abort date of the original row.

Example. Changing the periodized object, transaction

Changing the object and project of a periodized purchase invoice checks the same conditions as the periodization abort: the abort date cannot be in a closed period and the user must have the right to change a confirmed purchase invoice.

Periodization abort and object/project change are separate functionalities, so their fields are mutually exclusive: if you fill in the abort object or project, the abort amount and abort account fields are cleared, and vice versa.