Overview

Based on accounting principles, once financial data has been reported for a period. All reported numbers should be "locked" - i.e. no retroactive change should be allowed.

In case changes are needed in the locked period, whether due to past errors or the nature of business, the changes should be booked as adjustments to the earliest non-locked period.

Set Lock Periods

On Leapfin Platform, lock periods can be set to prevent reported journal entries from changing.

The lock period must be continuous, meaning that once a period is locked, all journal entries within or before the period will become non-changeable. For example, in order to lock Feb 2022, Jan 2022 and all previous months must be locked as well.

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Unlock a Period

It is not a good accounting practice to unlock a period. In rare case where unlock is required, please contact Leapfin support team.

Once a period is unlock, all journal entries within and after the period are subject to change.

There are two ways to set lock periods on Leapfin Platform.

Lock by Month

Step 1: Navigate to Revenue page on Leapfin.

Step 2: click on the "lock" icon next to the month that should be locked. The "Lock Until" date will be pre-populated based on the month selected.

Step 3: Read & check the confirmation box, then click "Continue" to save the lock period.

Step 4: Once locked, the icon will be disabled.

Lock by Date

Step 1: Navigate to organization dropdown on the top-right of the window. Then click on "Company Details"

Step 2: In the "Subledger Lock" section, select a lock date using the date picker.

Step 3: Read and check the confirmation box. Then click Save to set the lock date.

Walkthrough

On Feb 15th, after the month of January is closed, accounting team discovered data error on a transaction made on Jan 20th. The transaction should have been $10, but was booked at $100.

On Jan 20th, when the transaction was mistakenly booked. The following journal entry was created.

During month end close, the lock period is set to January (i.e. 01/31/2022). The journal entry above became unchangeable.

On Feb 15th, when the transaction was retroactively updated from $100 to $10, the net change would be booked on the first day after the lock period (i.e. 02/01/2022)