Accounting Period Close
Closing an accounting period means changing its status from Open to Closed. A status of Closed indicates that posting transactions for the period have been completed. This status prevents posting to the general ledger for any dates included in the period, by anyone. Closing a period should be a final step, after a process of accounts review and reconciliation to ensure correctness and balance.
For information about closing accounting periods, see the following topics:
If you use Multi-Book Accounting, you can individually close and reopen accounting periods associated with any accounting book, without impacting your other accounting books.
To close the period for the selected accounting book:
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Go to Setup > Accounting > Manage GL > Manage Accounting Periods.
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Choose the accounting book for which you want to close a period through the Filters section.
The accounting books available for selection depend upon your user role and associated permissions.
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Go to Period Close Checklist of the period you want to close.
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Complete all tasks in the checklist. For more details, see Using the Period Close Checklist.
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At the end of the checklist, go to the task Close and mark it as complete.
For more information about the Extended Accounting Period Close Process feature, see Accounting Book Period Close Management
Period Close Checklist
A Period Close Checklist for each period is available from the Manage Accounting Periods page. From this checklist, you can complete required tasks in sequence, and then close the period.
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Preliminary tasks lock the period to limit posting transactions. Locking tasks include Lock A/P, Lock A/R, Lock Payroll (if the Payroll feature is enabled), and Lock All.
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Other tasks such as Create Intercompany Adjustments, Revalue Open Foreign Currency Balances, Recognize Revenue, Reclassify Revenue, and Calculate Consolidated Exchange Rates, provide necessary adjustments. To complete these tasks, users require related permissions. For example, the Revalue Open Foreign Currency Balances task requires Create level Currency Revaluation permission.
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If you have enabled the GL Audit Numbering feature, GL Audit Numbering is listed as a task required as part of the period close process. Assign the number sequence for the period and then verify that the GL audit numbering is gapless. If you use NetSuite OneWorld, you can create sequences for each subsidiary. If you use Multi-Book Accounting, you can define book-specific numbering sequences. For more information, see GL Audit Numbering.
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The final task is to close the period.
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The Period Close Checklist provides access to related system and user notes.
For more information, including the procedure for closing the period, see Using the Period Close Checklist and Inventory Tasks on the Period Close Checklist.
Using Quick Close to Close Periods
The Quick Close preference enables you to close one or more accounting periods with a single click. This time-saving preference is useful when you have reopened one or more closed accounting periods to make a change. With Quick Close, NetSuite marks complete all tasks in all reopened accounting periods, eliminating the requirement to close them one-by-one.
For example, you want to make a change in the January 2016 accounting period. Reopen the period, which reopens all of the subsequent closed periods. Make your change. With Quick Close, you can close the January 2016 period and all subsequent periods at the same time.
The Quick Close preference is also useful when you prefer a one-click method for closing accounting periods. For example, you are the sole proprietor of your business. You process all accounting transactions. You do not want to go through each task on the period close checklist to close accounting periods. With Quick Close, you can close each period with a single click.
The Period Close Checklist helps you with your financial closing workflow. Quick Close does not run period closing tasks. It only marks the tasks as completed. Use Quick Close only when you are certain that there is no requirement to run period closing tasks.
Granting Permission to Use Quick Close
Quick Close is automatically granted to administrators. The Setup permission, Period Closing Management, must be added to other roles for users to use the feature. For information about NetSuite permissions, see NetSuite Permissions Overview and Permissions Documentation.
Enabling the Quick Close Preference
If your user role is granted both the Set Up Accounting and Period Closing Management permissions and you want to use Quick Close, you must enable the Allow Quick Close of Accounting Periods preference.
To enable the Allow Quick Close preference:
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Go to Setup > Accounting > Accounting Preferences.
Note:This preference does not appear in user roles that do not have the Period Closing Management permission.
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On the General subtab under the General Ledger section, click the Allow Quick Close of Accounting Periods box.
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Click Save.
For information about general accounting preferences, see General Accounting Preferences.
Closing Accounting Periods with Quick Close
If you have the appropriate permissions and the Allow Quick Close of Accounting Periods preference is enabled, you can close accounting periods using Quick Close.
To close Accounting Periods with Quick Close:
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To close one or more periods, click Close Multiple Periods.
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From the Periods to Close list, select the accounting period you want to close.
If you are closing multiple periods, select the latest period in the series of open periods. For example, you want to close January 2016, February 2016, March 2016, and April 2016. Select April 2016 from the Periods to Close list.
If Multi-Book Accounting is provisioned in NetSuite OneWorld, select the accounting book associated with the periods you are closing.
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Click Submit.
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At the prompt, click OK.
NetSuite maintains an audit trail of every changed task in every closed accounting period through system notes. For more information, see System Notes Overview.
Making Changes to Locked and Closed Periods
Users with the Override Period Restrictions permission can add and edit posting transactions even if the transaction type has been locked for a period. To allow other users to add or edit posting transactions, transactions must be unlocked for the period. See Unlocking Period Transactions.
Changes to addresses are not permitted in a closed accounting period. Changing the address on a transaction could alter the tax rate, and have an impact on the general ledger.
No one can make general ledger impacting changes to posting transactions in a closed period. The period must be reopened before these changes can be posted. See Reopening a Closed Period.
If the Allow Non-G/L Changes box is checked on a period record, you can make changes to posting transactions that do not affect the general ledger. You must have the Setup permission Allow Non G/L Changes to make these changes.
These permission restrictions do not apply to the addition or editing of non-posting transactions such as sales orders and return authorizations. See Non-Posting Transactions in Locked and Closed Periods.
Account administrators have both the Override Period Restrictions and Allow Non-G/L Changes permissions. To assign a user these permissions, go to Setup > Users/Roles > Manage Users and select a user. In the user record’s Access subtab, click the Global Permissions subtab. In the Permission field, select a permission and click Add. Then, click Save.
Approving Transactions from Closed Periods
Transactions that are subject to approval must be approved before posting. Their posting periods are determined upon approval. The actual posting period may vary from the period displayed on transaction entry forms and unapproved records.
If the originally displayed period is closed at the time of approval, the posting period is determined by the accounting preference Default Posting Period When Transaction Date in Closed Period. If the period that matches the transaction date is locked and the approver does not have the Override Period Restrictions permission, the system behaves as if the period is closed.
When you approve a posting transaction, you can select a different Posting Period than the one initially displayed. You cannot select a closed period. You may be able to select an open and locked period if your role includes the Override Period Restrictions permission.