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Understanding the closed inventory period

Learn about Katana’s inventory period closing period to maintain accurate financials and stock records.

Dayvid Lorbiecke avatar
Written by Dayvid Lorbiecke
Updated over 2 weeks ago

Katana uses inventory period closing to lock past inventory data, preventing changes that could affect financial reports or stock records. This ensures that previously reported numbers remain consistent between Katana and your accounting system.


Why are inventory periods closed

  • Prevents changes to past inventory quantities or values.

  • Avoids recalculations caused by Katana’s moving average cost method.

  • Keeps historical reports accurate and reconciled with accounting.


Open vs. closed inventory periods

Term

Definition

Open period

The current month and the previous month.

Closed period

All dates on or before the inventory closing date. No changes allowed to stock-affecting documents.

Example:
If today is May 15,

  • Open period = May & April

  • Inventory closing date = March 31

  • On June 1, the closing date will advance to April 30.


Where to find the closing date

Screenshot showing where to find the Costing section inside of Settings

Go to Settings > Costing to view the current inventory closing date.


What’s locked in a closed inventory period

Example of an order within a closed inventory period

Once a period is closed, you cannot create, update, or delete documents that change inventory quantities or average costs for that period.

Affected areas:

  • Purchasing:

    • POs with a Received date in a closed period cannot be changed back to “Not Received” or have their date/extra costs edited.

    • You cannot select a closed period date when receiving items.

  • Sales:

    • SOs with a Picked date in a closed period cannot be reverted to “Not Shipped” or have their date changed.

    • You cannot select a closed period date for picking.

  • Manufacturing:

    • MOs with a Done date in a closed period cannot be changed.

    • A MO in an open period cannot have its date moved into a closed period.

    • Partially completed MOs cannot have their Completed date moved into a closed period.

  • Stock adjustments:

    • Adjustments with an Adjustment date in a closed period cannot be edited or moved into an open period.

  • Stock transfers:

    • Transfers with a Transfer date in a closed period cannot be changed.

    • You cannot select a closed period date for a transfer in an open period.


Manually changing the inventory closing date

  • You can move the closing date back up to 18 months from the current date.

  • Manual changes remain in effect until the next automatic monthly closing.

  • Moving the date forward won’t reopen a closed period.

  • Changes to past documents will trigger recalculations for all related stock items.


Important notes

  • Always consult your accountant before changing the inventory closing date.

  • Changes to previously closed periods can cause unwanted recalculations and inconsistencies.

  • Only adjust the closing date when you fully understand the accounting impact.


Result: Understanding how closed inventory periods work helps you protect historical data, maintain consistent financial records, and comply with accounting best practices.


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