OVERVIEW:  The audit period should normally be used for the following situations:

  • Entering opening balances when first starting to use the product, unless we convert your existing data into the system.
  • Release from donor restrictions
  • Reclassify a disbursement to a capitalized asset
  • Year-end audit adjustments

Rationale: In each of the above situations, transactions are entered that should not be included in monthly reports.

Best Practice:  When adding a new year in Financials, users are given the option of including an Audit period.  This period is different from the monthly (or otherwise defined) periods which have associated calendar dates.  If the Audit Period is left open, then there is a chance that someone might inadvertently post a normal transaction to it.  As a best practice, the Audit period should be marked Closed until needed.

 

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