The Period Closing is a systematic tool designed to guide users through the process of closing accounting periods. This procedure is a critical component of the financial closing cycle, as it ensures the integrity, accuracy, and finality of financial data by restricting further modifications to transactions within closed periods. Regular period closing is essential for maintaining reliable financial records and enabling timely and accurate financial reporting. By closing accounting periods, organizations can prevent unauthorized or unintended changes to historical data, thereby safeguarding the consistency of financial statements and supporting compliance with statutory reporting requirements and internal accounting policies.

The following section presents a BPMN diagram that illustrates the process flow of Closing the Books.

Period Closing Settings #

The following settings enable the automation of key period-end closing operations. They determine the frequency at which revenue and expense accounts are closed and the frequency at which the resulting net profit or loss is transferred to the retained earnings account. Proper configuration of these parameters is essential to ensure that the financial closing process is executed in accordance with both internal accounting policies and applicable statutory reporting requirements.

Navigate to Accounting → Period closing → More actions → Period Closing Settings

Period Closing Accounting Settings #

The Period Closing Accounting Settings section allows for the configuration of the starting point for permitted postings, the establishment of the fiscal year calendar, and the adjustment of report generation behavior in accordance with organizational requirements.

• Start of accounting for period closing – Defines the accounting period from which postings are allowed. All periods prior to this date are considered closed and are not available for transaction entry.
• First month of financial year (fiscal) – Defines the starting month of the business year. Based on this setting, the system determines date ranges for financial reports generated for the current fiscal year.
• Disable period closing check for reports – Skips the verification of period closure status during report generation. When this option is enabled, reports can be generated for periods that are not yet closed, thereby allowing for the review of financial data prior to the finalization of the closing process.

Period Closing Operations Frequency #

The frequency of Closing Income/Expense accounts determines the periodic interval at which their balances are transferred to the profit/loss summary account. The following options are available:

Closing Retained Profit/Loss Frequency #

The frequency of Closing Retained Profit/Loss determines the periodic interval at which the net result (profit or loss) is transferred from the profit/loss summary account to the retained earnings account. The following options are available:

The selected frequencies determine the periodicity of financial closing and directly impact the availability of financial statements for specific reporting periods. It is recommended to align these settings with statutory reporting requirements and internal accounting policies.

Scheduled Operations #

This tab provides Scheduling options for automated period‑end processes. The following operations can be configured to run at predefined intervals:

• Schedule period closing operations – Schedules the automatic execution of period closing operations, including the closure of income and expense accounts, the transfer of net results to retained earnings, the calculation of depreciation, and the registration of exchange differences.
• Schedule exchange difference registration – Schedules the automatic registration of exchange differences as a standalone operation.

Both options can be configured to run daily, weekly, or monthly, with the ability to specify exact dates, start times, and repetition patterns.

The Period Closing Operation already includes the registration of Exchange Differences. A separate scheduled job for Exchange Differences should only be used if there is a business requirement to register them more frequently than once per month‑end.

Period Closing Wizard #

The Period Closing Wizard provides a step-by-step interface for executing the period-end closing process. This wizard consolidates all necessary closing operations into a single workflow, guiding users through sequence control, accounting verifications, and the final closure of the books.

Navigate to Accounting > Tools > Period Closing

Sequences Control #

This step is used for closing a month or period, as well as for re-establishing the correct state after changes have been made to documents within a Closed period. During regular month-end closing, clicking Restore performs the posting of all transactions within the selected period and closes it. In the event that a document belonging to a closed period has been modified (e.g., a bill has been reverted to draft status and saved again), the system detects that all subsequent periods from the date of modification onward are affected by this change and marks them as unclosed. Clicking Restore performs reposting of all transactions from the date of modification to the selected period, thereby closing the period again.

Clicking the Restore button opens the Transactions Sequence Control screen, where the system displays the number of transactions that will be reposted. The date range is predefined from the beginning of the period being closed (or from the date of modification) to the end of the current month.The user has the option to select the period up to which they wish to perform the posting.

Two options are available:

• Restore transactions sequences from [displayed date] to [selected month] – confirms the posting of transactions for the selected time range and closes the period
• Ignore sequence restoration, move sequence boundary to – cancels the posting, whereby the sequence boundary is moved so that transactions through the end of the current period are considered correct

Accounting #

This section displays a list of documents that are closed or will be closed in the observed accounting period. The principle is as follows: if the month is closed (marked in green), clicking on it displays the documents that have been closed in that month. If the month is not yet closed (marked in red), clicking on it displays the documents that will be closed in that month.

The following documents are included:

• Exchange differences – closed monthly
• Closing Income/Expenses – closing frequency depends on the settings defined in Accounting settings
• Closing Retained Profit/Loss – closing frequency depends on the settings defined in Accounting settings
• Assets Depreciation – closing frequency depends on the depreciation frequency defined in asset parameters

Closing the Books #

In this step, clicking the Close period for editing option opens the Closing the Books window, where the user can set the closing date and the warning type for the period being closed.

Period Closing Status in Reports #

When generating the Income Statement or Statement of Cash Flows, the following message may appear at the top of the report: “Period closing operations are not completed. Data may not be fully relevant.”

This message serves as a warning that the period-end closing process has not been finalized for the reporting period in question. It is designed to alert users that the financial data presented may be subject to subsequent adjustments, as certain closing operations—such as Depreciation calculation, Exchange Difference computation, or the closure of Income and Expense accounts—have not yet been performed.

The purpose of this notification is twofold:

• It ensures transparency by informing users that the report is based on preliminary data.
• It helps prevent misinterpretation of financial results that may change once the period is formally closed.