Imagine this? You run a business and you have a team of accountants preparing your financial records for you. Typically, you would allow some accounting adjustments even after the reporting period has passed (say 31st Dec). Hence, you would expect the team to complete all adjustments within a few days time (say 5th Jan)?

Sounds reasonable, right?

Once the dateline is over, the accounting system gets locked. From this point onwards, all financial records are final and no adjustments are allowed anymore. Of course, everything is possible as long as you have approval from the right person.

And that dateline (5th Jan) is also known as the Lock Date.

In the accounting module within SmartB, there is also such a feature.

 

Note: This term is generally not used except when setting up an accounting software.