The accounting policy defines rules that a company follows while preparing and presenting financial statements.
Before you start processing business transactions, set up the accounting policy according to your business needs and country’s legislation.
To set up the accounting policy:
- Go to Company > Enterprise > Accounting policy.
- In the Accounting policy list, click Create.
- In the Accounting policy window, in the Effective on field, specify the date when the accounting policy starts to apply to business transactions.
- Specify finance settings.
- Specify advanced inventory management settings.
- (If you plan to manage production activities) Specify production settings.
- (If you want to customize a sales invoice print form) Specify print form settings.
- Click Save and close.
The accounting policy is effective until you create another accounting policy with a later Effective on date. Create a new accounting policy if the current accounting policy no longer meets your business needs or country’s legislation.