Project Portfolio Management Certification (PfMP) Practice Exam

When a transaction is in an open project accounting (PA) period but the general ledger (GL) periods differ, the date that will be reflected is the first day of the nearest open period. This is due to the alignment of accounting practices that ensure transactions are recorded in accordance with the periods that are currently available for financial reporting.

In project portfolio management, it is essential to maintain accurate records that reflect when transactions can be accounted for. The first day of the nearest open PA period signifies the beginning of a time frame where transactions can be recognized and begins the chronological account that aligns with the operational flow of work associated with a project. This ensures that all records are consistent, preventing any misalignment between the different accounting systems that may be in place.

Using the last day of the nearest open period, the transaction date of the invoice, or the current date may result in discrepancies in financial reporting and disrupt the integrity of the project’s financial data. This is why the first day of the nearest open PA period is used, as it adheres to the principles of accounting and provides a clear and understandable basis for financial analysis within the context of the project portfolio.