Learn the difference between the entered date and the effective date:
- The entered date is the date the transaction was entered in the journal, and is also known as the "entry date." It is often generated by ERP systems based on the date the transaction was entered by a user.
- The effective date is the date the transaction was posted in the general ledger. This date determines which fiscal year and period the transaction will be posted into.
For example, on January 9th, 2024, a user enters an invoice into the ledger from December 16th. A December 16th, 2023 invoice is entered into the ledger . The entered date is Jan 9th, 2024 and the effective date is December 16th, 2023.