How Do Fiscal Months and Transaction Dates Impact Reconciliation and Reporting in Design Manager?

In Design Manager, understanding how fiscal months and transaction dates interact is crucial for accurate reconciliation and reporting. This article provides an overview of their importance, common issues that arise due to misalignment, and guidelines for resolving these discrepancies.

Key Principles of Fiscal Month and Transaction Date Alignment

Fiscal Month vs. Transaction Date: In Design Manager, many financial statements, including the Profit & Loss Report and Balance Sheet, rely on the fiscal month rather than the transaction date for reporting purposes. However, some reports, such as the Sales Tax Report, may depend on the transaction date.
Importance of Reconciliation: Ensuring alignment between fiscal months and transaction dates is critical for minimizing discrepancies, particularly in key areas like the Checkbook and Balance Sheet.

Resolving Fiscal Month and Transaction Date Misalignment

Discrepancies between fiscal months and transaction dates can lead to reporting issues, such as mismatched balances on the Balance Sheet and Checkbook. Here’s how you can resolve such issues:

Example Scenario 1: Payment Misalignment

Issue: A payment is posted to fiscal 01/2026, but its transaction date reflects January 16, 2025. Impact: This leads to a discrepancy where the Checkbook reflects the payment in 2025, but the Balance Sheet recognizes it in 01/2026, causing reconciliation errors. Resolution:

Void the incorrect payment from the Checkbook screen, ensuring it is voided in fiscal 01/2026.
Re-enter the payment using the Payments and Print Checks screen, ensuring the fiscal month and transaction date align appropriately. This adjustment re-establishes consistency between the Checkbook and Balance Sheet.

Example Scenario 2: Financial Report Discrepancy

Issue: A transaction dated August 10, 2024, is assigned to fiscal month 09/2024. Impact: On financial statements like the Profit & Loss Report, the transaction will appear under September 2024 due to fiscal month reliance. On date-dependent reports, such as the Sales Tax Report, the transaction will reflect August 2024. Resolution: Verify and adjust fiscal months in your transactions to ensure they align with your reporting needs, particularly for reconciliation purposes.

Best Practices for Avoiding Fiscal Month and Transaction Date Errors

Review Transactions: Before finalizing your entries, confirm that the fiscal month aligns with the intended reporting period.
Understand Report Dependencies: Familiarize yourself with which reports rely on fiscal months versus transaction dates to better anticipate potential discrepancies.
Use Void and Re-Entry: When errors occur, utilize the void-and-re-enter process to correct the fiscal month and transaction date alignment.

Conclusion

Accurately aligning fiscal months and transaction dates is essential for generating reliable financial reports and maintaining reconciled accounts in Design Manager. By following the outlined principles and resolutions, you can address common discrepancies and keep your financial data consistent and reliable.

How do fiscal months and transaction dates impact reconciliation and reporting in Design Manager?