This topic describes the tasks that are typically completed when performing a period closing for General ledger.
In General ledger, you can complete closing procedures for a period or a year. Closing processes prepare the system for a new period. To prepare the system for a new year, you must run the year end close process. Each organization has different processes and steps that it performs for the end of a period. Here are some optional steps for period ends:
- Complete all the tasks for all other modules, such as Accounts receivable, Accounts payable, and Inventory.
- Verify that all journals are posted.
- Run foreign currency revaluation to generate any unrealized gain or loss amounts.
- Settle transactions for each ledger account.
- Process any required allocations.
- Manually post period-end adjustments.
- Journalize transactions, and review the Ledger journal report.
- Perform a consolidation by using a consolidation company or Financial reporting.
- Generate period-end financial statements by using Financial reporting.
- Set ledger periods to On hold, so that no further posting occurs. You can also restrict a period to a specific user group while period-end activities are occurring, for better control. It's not a good idea to set periods to Permanently closed, because you can't reopen a period that has been closed.
The Financial period close workspace can be used to organize and track the tasks required for various period end processes. Refer to the Financial period close workspace and Year end close topics for more information.