Guidelines for Reopening Accounting Periods in Tabs

Last updated: October 23, 2025

Reopening Accounting Periods - Implications

Reopening closed accounting periods in Tabs is permitted only under exceptional circumstances and only when the corresponding period in the ERP is also open. Doing so can introduce data inconsistencies and reporting risks.

When It’s Appropriate to Reopen an Accounting Period

Accounting periods in Tabs may be reopened only if the corresponding ERP period is open and one of the following applies:

  • Contract Modification: Contract terms require amendment due to a confirmed change.

  • Omitted Contract: A contract was inadvertently excluded during review and must be backfilled and billed.

If neither condition applies, the period should remain closed to preserve the accuracy and completeness of financial statements and maintain consistency between Tabs and the ERP.

How to Reopen an Accounting Period in Tabs

Reopening should occur only after internal approval and coordination with finance and accounting control owners.

  1. Reopen the corresponding period in the ERP.

  2. In Tabs, click Sync ERP to align system status.

  3. Perform the approved edits or billing actions in Tabs.

  4. Close the accounting period in the ERP once complete.

  5. In Tabs, click Sync ERP again to confirm alignment.

How to Unlock in the ERP

Accounting Implications and Risks

Reopening a closed accounting period allows modification of transactions that were already reviewed and recognized. This introduces financial control and reporting risks, including:

  • Data Inconsistency: Variances between Tabs and the ERP general ledger requiring manual reconciliation.

  • Revenue Misstatement: Risk of inaccurate or duplicated recognition from post-close edits.

  • Audit Trail Compromise: Loss of traceability or substantiation of historical balances.

  • Control Deficiencies: Breach of close procedures, management approvals, or segregation of duties.

Alternative Corrective Actions

When possible, adjustments affecting a closed period should be recorded in the current open period using one of the following methods:

  • Credit Memo — Reverse or adjust previously recognized revenue or discounts.

  • Reissued Invoice — Correct pricing, contract terms, or billing errors.

  • Adjusting Journal Entry (ERP) — Record accounting adjustments in prior periods.

All corrective actions must be documented, reviewed, and approved in line with the company’s accounting policy and close control framework.