Period Closing

Period closing ensures accurate financial reporting through systematic month-end and year-end procedures. This guide covers comprehensive closing processes in Angage ERP.

Understanding Period Closing

Purpose of Closing

Period closing serves to:

• Ensure transaction completeness
• Validate account balances
• Lock historical periods
• Prepare financial statements
• Maintain data integrity

Closing Types

Soft Close

• Quick monthly close
• Limited procedures
• Management reporting
• 1-3 day process

Hard Close

• Full monthly close
• Complete procedures
• External reporting
• 3-5 day process

Year-End Close

• Annual procedures
• Audit preparation
• Tax compliance
• 5-10 day process

Month-End Closing

Pre-Closing Preparation

Transaction Cutoff

1. Set cutoff date/time

2. Communicate to teams:

   • Sales: Last invoices
   • Purchasing: Final receipts
   • Warehouse: Shipments
   • Finance: Payments

3. Process pending:

   • Open purchase orders
   • Unbilled deliveries
   • Pending receipts
   • Draft journals

Closing Checklist

Navigate to Finance → Period Close → Checklist

Day 1: Transaction Processing

• [ ] Post all cash receipts
• [ ] Process vendor invoices
• [ ] Complete payroll posting
• [ ] Record credit card charges
• [ ] Clear suspense accounts

Day 2: Reconciliations

• [ ] Bank reconciliations
• [ ] Credit card reconciliations
• [ ] Accounts receivable
• [ ] Accounts payable
• [ ] Inventory reconciliation
• [ ] Intercompany accounts

Day 3: Adjustments

• [ ] Accruals and deferrals
• [ ] Depreciation
• [ ] Amortization
• [ ] Provisions
• [ ] Tax calculations
• [ ] Currency revaluation

Day 4: Review & Reporting

• [ ] Trial balance review
• [ ] Variance analysis
• [ ] Financial statements
• [ ] Management reports
• [ ] Close period

How-To Guides

How to Perform Bank Reconciliation

1. Navigate to Cash Management → Bank Reconciliation
2. Select bank account and period
3. Import bank statement
4. System auto-matches transactions
5. Manual matching:

   Bank: Deposit $5,000 on 3/31
   Book: Customer payment $5,000 on 3/30
   Action: Match with date difference

6. Investigate differences:
   • Outstanding checks
   • Deposits in transit
   • Bank charges
   • Interest earned
7. Create adjusting entries
8. Complete reconciliation

How to Calculate Accruals

Expense Accruals

Record expenses incurred but not billed:

Utilities Accrual

Estimate: $3,000 (based on prior months)
Entry:
Dr: Utilities Expense $3,000
Cr: Accrued Expenses $3,000

Payroll Accrual

Period worked: March 29-31 (3 days)
Daily payroll: $10,000
Accrual: $30,000

Dr: Salary Expense $30,000
Cr: Accrued Payroll $30,000

Revenue Accruals

Recognize earned but unbilled revenue:

Services delivered: March 25-31
Unbilled amount: $50,000

Dr: Accrued Revenue $50,000
Cr: Service Revenue $50,000

How to Process Depreciation

Automated Calculation

1. Go to Fixed Assets → Depreciation
2. Click Calculate Depreciation
3. Select period: March 2024
4. Review calculations:

   Asset: Office Equipment
   Cost: $120,000
   Method: Straight-line, 5 years
   Monthly: $2,000

5. Post depreciation:

   Dr: Depreciation Expense $2,000
   Cr: Accumulated Depreciation $2,000

Manual Adjustments

For special cases:

• Partial month additions
• Disposals
• Impairments
• Change in estimates

How to Run Currency Revaluation

For foreign currency balances:

1. Navigate to Currency Revaluation
2. Select revaluation date
3. System calculates:

   EUR Bank Account: €10,000
   Book rate: 1.10
   Month-end rate: 1.12
   Unrealized gain: $200

4. Post revaluation:

   Dr: EUR Bank Account $200
   Cr: Unrealized FX Gain $200

How to Close Subledgers

Accounts Receivable

1. Run aged receivables
2. Review credit balances
3. Process bad debt provision
4. Clear unapplied cash
5. Reconcile to GL

Accounts Payable

1. Run aged payables
2. Accrue uninvoiced receipts
3. Review debit balances
4. Process vendor statements
5. Reconcile to GL

Inventory

1. Complete all movements
2. Run physical counts
3. Process adjustments
4. Calculate provisions
5. Validate costing
6. Reconcile to GL

How to Review Trial Balance

Balance Review

1. Generate trial balance
2. Review for:
   • Unusual balances
   • Wrong sign accounts
   • New accounts
   • Large variances
   • Round numbers

Analytics

• Compare to prior period
• Calculate ratios
• Review trends
• Investigate anomalies
• Document findings

How to Lock Periods

Soft Lock

Prevent casual changes:

1. Set period status: "Soft Locked"
2. Restrictions:
   • Warning on posting
   • Supervisor override
   • Audit trail

Hard Lock

Prevent all changes:

1. Set period status: "Hard Locked"
2. Complete lockdown:
   • No posting allowed
   • No modifications
   • Read-only access
3. Requires CFO unlock

Year-End Procedures

Additional Year-End Steps

Tax Preparations

• [ ] Fixed asset roll-forward
• [ ] Tax depreciation
• [ ] Deferred tax calculation
• [ ] Tax provision
• [ ] Transfer pricing
• [ ] Tax return schedules

Audit Preparations

• [ ] Lead schedules
• [ ] Supporting documentation
• [ ] Account reconciliations
• [ ] Management representations
• [ ] Subsequent events
• [ ] Contingencies

Statutory Requirements

• [ ] Board resolutions
• [ ] Dividend declarations
• [ ] Reserve movements
• [ ] Director reports
• [ ] Compliance certificates

How to Close Fiscal Year

1. Complete all monthly procedures

2. Additional steps:

   • Annual inventory count
   • Fixed asset verification
   • Provision reviews
   • Actuarial valuations
   • Impairment testing

3. Close Income Statement

   Total Revenue: $10,000,000
   Total Expenses: $8,500,000
   Net Income: $1,500,000
   
   Dr: Revenue accounts $10,000,000
   Cr: Expense accounts $8,500,000
   Cr: Retained Earnings $1,500,000

4. Roll forward balances

5. Open new fiscal year

Advanced Features

Automated Closing

Task Automation

Configure automatic:

• Depreciation calculation
• Recurring entries
• Currency revaluation
• Allocation runs
• Report generation

Workflow Management

• Task dependencies
• Parallel processing
• Automatic routing
• Progress tracking
• Exception handling

Close Analytics

Close Metrics

Track performance:

• Days to close
• Tasks completed
• Issues found
• Adjustments made
• Restatements

Process Improvement

• Bottleneck analysis
• Task timing
• Resource utilization
• Error patterns
• Optimization opportunities

Best Practices

Efficiency Tips

• Standardize procedures
• Document processes
• Train backup staff
• Automate routine tasks
• Continuous improvement

Quality Control

• Independent review
• Analytical procedures
• Reconciliation sign-offs
• Variance explanations
• Documentation standards

Communication

• Clear calendars
• Status updates
• Issue escalation
• Management reporting
• Stakeholder updates

Configuration

Period Settings

Navigate to Settings → Finance → Periods:

• Period Definition: Calendar months
• Lock Types: None/Soft/Hard
• Lock Permissions: By role
• Grace Period: 5 days
• Auto-Lock: After 30 days

Checklist Configuration

• Standard tasks
• Custom additions
• Dependencies
• Assignments
• Due dates

Troubleshooting

Common Issues

Cannot post to period

• Check period status
• Verify user rights
• Review date
• Check document date

Reconciliation differences

• Review timing items
• Check classifications
• Verify calculations
• Research transactions

Close delays

• Identify bottlenecks
• Resource constraints
• System issues
• Process gaps

INFO

This completes the Financial Management module documentation. Proper period closing ensures accurate financial reporting and maintains system integrity.