The Period Close process can be a tedious and time-consuming task that can be the biggest headache for many. I have compiled a list of each subledger/module, along with the order of which to close them, as well as suggested reports to use to make the closing process a breeze. After all, it’s hard to know what module needs to be closed first to make the closing process successful, but with the list of period close dependencies that I will provide, the process can be easier and quicker than one may think. Knowing which reports are helpful along with the correct order in which to view them can make a major improvement on a company’s current business processes. When a client transitions into Fusion Cloud from a different ERP system, they will find that the processes, reports, and pages are very intuitive and provide the user with drill-down capabilities that will make the process easier than ever. The subledger to reconciliation reports that are available make it easier for the analysts to drill into each out-of-balance transaction or amount so they can fix the issue right then and there.
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Here is the order in which to close the books:
- Close Payables before closing Procurement. This is done to take into account the purchasing accruals at period end to accrue expenses on un-invoiced receipts.
- Close Payables before closing Inventory. This ensures that the un-invoiced accrual entry is accurate.
- Close Payables before closing Fixed Assets. This is done to ensure invoices are completed and capital invoice line distributions are transferred from Payables to Fixed Assets.
- Close Payables before closing Projects. This is to ensure invoices and expense reports are completed and transferred to Projects.
- Close Procurement before closing Inventory. This is to allow miscellaneous transaction corrections in Inventory.
- Close Inventory before closing Projects, so that Project-related inventory transactions are completed and imported into Projects.
- Transfer all relevant Project costs to Fixed Assets, then transfer revenue to Receivables before closing Fixed Assets and Receivables.
- Close all subledger applications before closing General Ledger.
Since the close process can be difficult to follow in the correct order, hopefully this bit of information has been helpful. In the upcoming weeks, I will discuss a few key points to consider when closing each subledger as well as recommended reports to run.