Costing Utilities and Prior Periods


BE VERY CAREFUL…

Once you run the costing utilities for a given period, you should never run them again for any prior period.

Best practice dictates that you should not re-open a month to re-run the cost utilities.  You should run the cost utilities in the current period and let the transactions flow through to the current month.  If the prior periods’ transactions need to be reflected in the month to which they belong to then enter a journal entry in the prior period and a reversing journal entry in the current period.

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