If you set up this option, make sure you also set option 8271 "Posting Rules for Closed Periods in General Ledger" to either 2 or 3.
(ID #8269) If desired, use this G/L option in Options Configuration to enter a cutoff date so that no transactions with a date less than or equal to the date you enter in this option will be posted to the G/L. For example, if your current month is July of 2006, and you have closed your books for June of 2006, enter the ending date for June of 2006. If you are on a calendar year, this would be 06/30/2006. If you have a fiscal year where your periods don’t always end on the last day of the month, enter your period ending date.
The "Last Closed Date" will be checked by three programs: 1) The General Journal Transaction entry application (GGMU), 2) the G/L posting program (RGGG), and 3) the Recurring Journal Transaction posting program (RGJG).
If you add a G/L transaction in the General Journal Transaction window (GGMU) with a transaction date that is less than or equal to the date in this option, you will receive only a warning: "the date of this transaction occurs in a period that is closed. The "Last Closed Date" is currently set to 99/99/9999. Are you sure you want to create a transaction with this date?" If you answer Yes, the system will nevertheless add the transaction, even if it's in a closed period. If you answer no, the system will not add the transaction.
However, when you attempt to POST transactions to G/L (with RGGG for regular transactions or RGJG for recurring transactions), the system will check the Last Closed Date in this option, as well as check option 8271 "Posting Rules for Closed Periods in General Ledger" to determine whether or not to post transactions. If it determines it can post transactions from a closed period, they are posted with today’s date, and the original date of the transactions gets passed to the G/L for information only.