Processing Cycle

A processing cycle is a period of time during which transactions are entered, processed, and posted. Each cycle follows a regular sequence.

A processing cycle can refer to the sequence of transactions that you perform to complete a specific process (timesheets) or a series of processes (timesheets, payroll, billing) over a specified period of time.

At the end of the cycle, you can generate various reports from the transaction data posted during the cycle.

Typically, processing cycles are based on your enterprise's accounting periods. The order in which you process various types of data within an accounting period depends on your timesheet/payroll processing periods, billing cycles, and reporting needs.

Related Topics:

  • Accounting Periods and Processing Cycles
    An accounting period is a consistent unit of time that is used to record business activities and monitor profits. It provides a framework for measuring business activity and evaluating your enterprise's financial position.
  • Transaction Processing
    During the course of a typical accounting period, your enterprise processes a variety of transactions that allow you to track and bill project expenses, process timesheets and generate paychecks, pay accounts due, allocate overhead, and generate revenue.
  • Reporting at the End of the Processing Cycle
    You should generate a set of final reports at the end of the processing cycle.
  • Backing Up Your Database
    Backing up your database may be the most important maintenance task that you perform during a normal processing cycle. Maintaining a routine of daily (or even more frequent) database backups can minimize the need to re-enter data lost due to unforeseen circumstances.
  • Monthly Processing Cycle Checklist
    Most enterprises follow the same general steps during the monthly processing cycle.
  • Opening New W-2 Quarters and Absence and 1099 Years
    Use the Utilities application to open new W-2 quarters, absence years, and 1099 years.
Parent Topic: Concepts