Accounting Calendars with FAQ
When a new store joins Decision Logic, that store needs to outline its accounting calendars for the site’s usability. Calendar generation is a detailed process that allows no room for interpretation as we define specs in a database.
By defining the metrics of calendars, Decision Logic can ensure that operators know what to expect when viewing reports that are calculated based on specific intervals.
For example, a “period” always consists of four to five weeks (depending on the structure used) and always includes the same number of days in the week. This results in a comparison of values across periods.
Decision Logic needs a location’s Fiscal, Labor, Payroll, and Inventory calendars.
Fiscal Calendar
The fiscal calendar describes how the store views sales and reports according to your accounting cycle. To configure a fiscal calendar, Decision Logic needs:
2021 Fiscal year start date
Fiscal week start the day
Fiscal structure
Inventory Calendar
The inventory calendar describes when stores take inventory used in COGS (Cost of Goods Sold) and IvA (Ideal Vs. Actual)reporting. To configure an inventory calendar, Decision Logic needs:
2021 Inventory year start date
Inventory structure
Inventory frequency
How often is inventory taken?
Ex: Weekly on Monday, bi-monthly on 1st and 15th, weekly on Monday with an additional inventory at the end of the month
Payroll Calendar
The payroll calendar describes the format of how Payroll reports are viewed and payroll weeks look. For payroll, periods and weeks are defined for different purposes. Periods exist because payroll relies on defined weeks – however, reporting is based on specific dates. To configure a payroll calendar, Decision Logic needs:
2021 Payroll year start date
Payroll structure
Payroll week start day
Length of payroll week
Labor Calendar
The labor calendar describes how the weeks on the Labor Scheduler look and how OT is calculated. To configure a labor calendar, Decision Logic needs:
2021 Labor calendar start date
Labor week start day
Labor structure
Table of Contents
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Definitions
Accounting Calendar: A schedule of anticipated dates for Financial Activities.
Calendar Start Date: The first date the calendar begins for a new year.
Week Start: The day of the week the calendar starts and periods begin. This date must align with the calendar start date.
Structure: Defines the pattern in the number of weeks in each financial period for each financial quarter. Ex: 4/4/5, 13/4, or 5/4/5
Length of Payroll Week: The time between pay periods.
Frequently Asked Questions
When submitting a calendar, it is important to look for outliers. Configuring the calendars correctly the first time is important, given historical data and the time it takes to transition a location to an alternate calendar. Consider asking these questions when reviewing a calendar.
Why is everyone unable to default to using a calendar month?
A calendar month can differ in the number of weeks and days and can have different numbers of days that make up a week, making comparisons across months unreliable and less meaningful.
Does the year start date correlate correctly with the week start day?
Example: An owner says their fiscal calendar starts on January 1st, 2021. They mention they follow a 13/4 structure, and their week start day is Monday. This is incorrect because January 1st of 2021, was on a Friday and not a Monday.
Does the Labor Calendar match the Payroll Calendar?
If the labor calendar does not match the payroll calendar, the store could notice inconsistencies with when payroll comes out vs. what is reflected on the labor scheduler, as well as how overtime (OT) is calculated between the two.
If the labor calendar identifies OT, a best practice is to manage a payroll structure that recognizes those overtime hours.
Do all calendars have the same structure?
Accounting best practice is to have a store’s accounting calendars all follow the same structure because it becomes complicated to reconcile if inconsistent.
Is it okay if stores take an inventory once a month?
In Decision Logic, actions such as taking an inventory make specific data populate in the site. For example, if someone takes inventory once a month, there is a high potential for a variance because many days have passed, including invoices received and the like.
Can I have a monthly calendar?
Calendars that are month to month, defined as a “Calendar month” or “12 periods” that contain 4/4/5 weeks per period
With an actual calendar month (Jan 1st-Jan 31st, etc.), there will be weeks that are less than seven days. DL can configure this. However, it’s important to call out that this is abnormal and complicated to reconcile.
From month to month, the amount of days varies. This varying amount of days could result in data that isn’t day-for-day reflective, which makes data less reliable and meaningful.
Calendars all follow different patterns. Is that normal?
The four calendars typically follow a fairly similar pattern, such as starting on the same day of the week. However, when calendars have different start days of the week, it warrants further investigation.
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