Accounting fog

The accounting fog is a document assimilated to a draft awaiting validation. It owes its existence to accounting principles and in particular to the principle of the intangibility of the opening balance sheet. In practice, this designation has almost disappeared from accounting software. Compta-Facile takes stock of accounting fog  by giving it a definition and indicating its usefulness and its management methods.

Summary hide

What is accounting fog?

What is the accounting fog used for?

How to manage accounting fog?

What is accounting fog?

By definition , the accounting fog is a provisional document listing all the accounting entries entered by the company and / or by its accountant and which are awaiting validation by a hierarchical superior. Once verified, the information is reproduced in the final accounting books . We also sometimes speak of “seizure fog”.

Fog is not compulsory and it is not subject to any particular formalism. Its presentation is free, even if it contains, in practice, the same information as an accounting journal: the date, the number of the supporting document, the eventful account number, the wording of the transaction, the amount charged to debit from the account or the amount credited to it.

What is the accounting fog used for?

The accounting fog makes it possible to control the accounting entries recorded during a given period (day, month, quarter, semester, year) before their integration into the final accounting . It makes it possible to prevent any errors from being corrected by recording several entries: one write reverses it in order to cancel it while a new entry notes the correct movements.

Concretely, it is used by the chartered accountant to verify the data entered by his client before integrating it into the accounts and possibly to rectify directly the errors that he has spotted (inversion “excluding taxes – VAT” for example). This saves him time during his review mission.

How to manage accounting fog?

The accounting fog can be managed in two ways (the first being no longer used in practice):

  • In writing: transactions are recorded by hand as they are presented, in chronological order, in a draft. As soon as they are validated, they are copied into the final books;
  • By computer: the movements are recorded in an accounting software and are then checked and validated by automated processing definitively. They can be modified or deleted before their final validation.

Nowadays, most accounting software uses the accounting fog function without naming it as such. It generally constitutes a provisional pre-registration function leaving the user the possibility of making modifications in the event of an error and then of validating them in order to integrate them definitively in the accounts. Two safeguards to comply with the applicable accounting rules:

  • A process of validation of the records: as soon as the user has validated his entries which were recorded in “fog” mode, it is impossible to modify or delete them;
  • A process of closing the accounts: after having validated his accounting entries, the user “freezes” them so that the data of the balance sheet of closing of the financial year correspond exactly to that of the opening balance sheet of the following financial year.

 

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