Using the Period Close Checklist

To close a period, you must first lock out transactions that post to A/P, A/R, and Payroll if applicable, and then review accounts and perform any necessary adjustments. These adjustments can include transactions generated by the system such as intercompany adjustments and foreign currency balance revaluations in NetSuite OneWorld. Also, if you use NetSuite OneWorld, you must update consolidated exchange rates to ensure that consolidated financials are accurate, and eliminate intercompany transactions if you use the Intercompany Auto Elimination feature.

You might also be required to reconcile negative inventory, correct transaction/period date mismatches, or validate gapless GL audit numbering.

If your user role has the Period Closing Management permission and the Allow Quick Close of Accounting Periods preference is enabled, you can omit closing the tasks one-by-one and close one or more accounting periods with a single click. For more information, see Using Quick Close to Close Periods.

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. You choose the accounting book for which you want to close a period through the Filters section at the top of the Manage Accounting Periods page. The accounting books available for selection depend upon your user role and associated permissions. For more information about the Extended Accounting Period Close Process feature, see Accounting Book Period Close Management.

After you have completed these tasks, you can close the period to exclude all posting transactions. Later, if additional postings are required, you can reopen the period. While the period was closed, if you enabled features that add tasks to the checklist, those tasks do not appear on the checklist for the reopened period.

All tasks are completed from the Period Close Checklist page. This page also provides access to system notes and user notes related to period close. You must have Edit or Full level of the Manage Accounting Periods permission as well as the Override Period Restrictions permission to complete all tasks in this page.

Note:

The first time that any task is viewed, System Notes logs a Create entry.

If previous periods are still open, you can complete tasks to lock transactions for a period. You cannot, however, complete any other checklist tasks including closing the period until all previous periods have been closed.

To use the Period Close Checklist to close a period:

Go to Setup > Accounting > Manage GL > Manage Accounting Periods.
Click the Checklist icon for a period.
Review the tasks in the checklist. Tasks are listed in the order in which they should be completed.

Status icons indicate whether each task is completed , partially done , or not started .

Icons in the Go To Task column provide links to individual task pages where you can review details about and take action to complete each task. Note that some task actions may be inaccessible until prerequisite tasks are completed. These actions display lock icons . You can point to these icons for information about prerequisites.

Note:
The Modified By column displays the name of the user responsible for changing the status of that particular task. For example, if user A is the person responsible for first locking the Lock A/R task for a particular subsidiary, user A’s name displays on the System Notes of the accounting period for which the field’s status changed from Unlocked to In Progress. If user B locks the A/R task for another subsidiary but there are subsidiaries that remain unlocked, the accounting period retains the In Progress status for A/R, and the Modified By field continues to display user A’s name. The Modified By field changes only when all of the subsidiaries have been locked, or changed back to unlocked.

The first time that any task is viewed, System Notes logs a Create entry.
To complete a task, click the Go To Task icon for the task.
1. To prevent A/R transactions in the period, click for Lock A/R, then click Submit.
2. To prevent A/P transactions in the period, click for Lock A/P, then click Submit.
3. To prevent Payroll transactions in the period, click for Lock Payroll, then click Submit.
4. To prevent A/R, A/P, and Payroll (if applicable) transactions in the period, click for Lock All, then click Submit.
In NetSuite OneWorld, you can lock periods by subsidiary. For instructions, see Locking Accounting Periods in NetSuite OneWorld
If you use the Inventory feature, the checklist may include these inventory tasks:
- Resolve Date/Period Mismatches
- Review Negative Inventory
- Review Inventory Cost Accounting
- Review Inventory Activity (NetSuite OneWorld)
For details about completing these tasks, see Inventory Tasks on the Period Close Checklist.
If you use the Custom GL Lines Plug-in and have some accounts running asynchronously, click the icon for Review Custom GL Plug-ins Executions.
- You must have the Review Custom GL Plug-ins Executions permission as well as the Override Period Restrictions permission to complete this task for the subsidiaries you can access.
- Click Review Custom GL Plug-ins Executions to go to the Reviewing Custom GL Lines Plug-in Executions page.
- If your review is finished, click Mark Task Complete.
- If you have previously marked this task complete but must do more work, click Mark Task In Progress.
- To go back to the checklist page, click Cancel.
If you use NetSuite OneWorld and have automated adjustments for intercompany expenses enabled, click the icon for Create Intercompany Adjustments.
- You must have the Journal Entry permission as well as the Override Period Restrictions permission to complete this task for the subsidiaries to which you have access.
- Click Create Intercompany Adjustments to go to the Create Intercompany Adjustments page and complete this process. See Creating Intercompany Adjustments for Time and Expenses.
  
  The Period Close Checklist requires that you review the Create Intercompany Adjustments page. After you have reviewed this page it is possible to return to the Period Close Checklist, mark the task complete without performing it, and proceed with the close. However, it is strongly recommended that you complete intercompany adjustments before closing a period.
  
  The recommended way to eliminate this requirement from the checklist is to change the Intercompany Expenses preference from Allow and Auto Adjust to Allow. This preference is available at Setup > Accounting > Preferences > Accounting Preferences. See General Accounting Preferences.
  
  Note:
  If you also use Job Costing in NetSuite OneWorld, this item is required for resolving any project time that has posted in this period. For more information, see Job Costing and OneWorld.
- If your intercompany adjustments are finished, click Mark Task Complete.
- If you have previously marked this task complete but now need to do more work, click Mark Task in Progress.
- To go back to the checklist page, click Cancel.
If multiple currencies is enabled, click the icon for Revalue Open Foreign Currency Balances.
- You must have the Currency Revaluation permission at the Create level, as well as the Override Period Restrictions permission, to complete this task for the subsidiaries you can access.
  
  The revaluation process sometimes needs to delete previous revaluation transactions to complete the current revaluation. Deletion requires Full access for Currency Revaluation. If you do not have Full access, an error message lists the revaluation transactions that need to be deleted. Another user with Full access must delete the transactions so you can complete the process.
- Click Currency Revaluation to go to the Select Accounts to Revalue page and complete this process. See Revaluation of Open Currency Balances.
- In NetSuite OneWorld, you must complete revaluation for each subsidiary. Go to the Select Accounts to Revalue page to select each subsidiary and complete the task. Depending on your account, you may revisit this page multiple times.
  
  The Period Close Checklist requires that you review the Select Accounts to Revalue page. After you have reviewed this page it is possible to return to the Period Close Checklist, mark the task complete without performing it, and proceed with the close. However, it is strongly recommended that you complete revaluation before closing a period.
- If your revaluation is finished, click Mark Task Complete.
- If you have previously marked this task complete but must do more work, click Mark Task In Progress.
- To go back to the checklist page, click Cancel.
If the Advanced Revenue Management (Essentials) feature is enabled, click the icon for Recognize Revenue.
- Click Recognize Revenue to go to the Create Revenue Recognition Journal Entries page and complete this process. For more information about this process, see Generating Revenue Recognition Journal Entries.
- The Period Close Checklist requires that you review the Create Revenue Recognition Journal Entries page. You should complete revenue recognition journal entries before closing a period.
  
  Note:
  After you have reviewed the Create Revenue Recognition Journal Entries page, it is possible to return to the Period Close Checklist, mark the task complete without performing it, and proceed with the close. However, it is best practice to complete revenue recognition journal entries before closing a period.
- If you have completed your review, click Back to Period Close.
- If you have recognized revenue, click Mark Task Complete.
- If you have previously marked this task complete, but you need to do more work, click Mark Task In Progress.
- To go back to the checklist page, click Cancel.
You can learn more about recognizing revenue using the Period Close Checklist by watching the Advanced Revenue Management Tasks in the Period Close Checklist video on the Oracle Video Hub.
If Advanced Revenue Management (Essentials) is enabled, click the icon for Reclassify Revenue.
- Click Reclassify Revenue to go to the Create Reclassification Journal Entries page and complete this process. For more information about this process, see Creating Reclassification Journal Entries.
- The Period Close Checklist requires that you review the Create Reclassification Journal Entries page. You should complete reclassification journal entries before closing a period.
  
  Note:
  After you have reviewed the Create Reclassification Journal Entries page, it is possible to return to the Period Close Checklist, mark the task complete without performing it, and proceed with the close. However, it is best practice to complete reclassification journal entries before closing a period.
- If you have completed your review, click Back to Period Close.
- If you have reclassified revenue, click Mark Task Complete.
- If you have previously marked this task complete, but you need to do more work, click Mark Task In Progress.
- To go back to the checklist page, click Cancel.
You can learn more about reclassifying revenue using the Period Close Checklist by watching the Advanced Revenue Management Tasks in the Period Close Checklist video on the Oracle Video Hub.
If you use NetSuite OneWorld and have multiple currencies enabled, click the icon for Calculate Consolidated Exchange Rates.

If the Multi-Book Accounting feature is provisioned in NetSuite OneWorld, this task is accounting book specific. On the Consolidated Exchange Rates page, from the Accounting Book filter, choose the accounting book for which you want to calculate exchange rates.
- You must have the Currency permission as well as the Override Period Restrictions permission to complete this task for the subsidiaries and accounting books you can access.
- Go to the Consolidated Exchange Rates page, click Calculate Consolidated Exchange Rates.
  
  By default, this page lists consolidated exchange rates for the period for all subsidiaries and accounting books to which you have access.
  
  Click Calculate to update consolidated exchange rates. If you do not have access to all subsidiaries or accounting books, rates are updated for only those subsidiaries and accounting books to which you have access. For more information, see Calculating Consolidated Exchange Rates Automatically.
- If consolidated exchange rate updates are complete, click Mark Task Complete.
  
  Important:
  After you mark this task complete, the consolidated exchange rates for the selected period cannot be changed.
- If you previously marked this task complete but are required to do more work, click Mark Task in Progress.
- To go back to the checklist page, click Cancel.
If you use NetSuite OneWorld and have intercompany elimination enabled, click the icon for Eliminate Intercompany Transactions.

If the Multi-Book Accounting feature is provisioned in NetSuite OneWorld, this task is accounting book specific.

For instructions on running intercompany elimination, see Running Intercompany Elimination and Elimination Through the Automated Intercompany Management Feature.
If you have enabled the Period End Journal Entries feature, Create Period End Journals is a required task for the period close process. For instructions, see Creating Period End Journals from the Period Close Checklist.
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 in the last month of the period. Click the icon to assign the number sequence for the period and 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.
If you completed all other tasks on the list, you are ready to close the period. Click the icon for Close, and then click Close Period.

After the period is closed, all other task icons are no longer accessible and no further actions can be completed in the period.

Note:
If Multi-Book Accounting is provisioned in NetSuite OneWorld and you have enabled the Extended Accounting Period Close Process feature, when you close all of your accounting books at the same time you can point to the Period Close icon to view information about which books are already closed and which are still opened.

If changes are later required for a closed period, you must reopen the period. See Reopening a Closed Period.
To review system notes, review user notes, or add a user note, click the Notes link in the header. You can also view notes on the System Notes subtab on a checklist task page.

To use the Period Close Checklist to close a period:

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