{"id":229,"date":"2023-09-16T11:05:21","date_gmt":"2023-09-16T11:05:21","guid":{"rendered":"https:\/\/community.cloudby.co\/guide\/en\/accounting%20guide\/managing-periods-cycles"},"modified":"2024-03-07T08:03:13","modified_gmt":"2024-03-07T08:03:13","slug":"closing-cycle","status":"publish","type":"page","link":"http:\/\/community.cloudby.co\/knowledge\/guide\/en\/accounting-accountant\/closing-cycle\/","title":{"rendered":"Closing Cycle"},"content":{"rendered":"

Closing Cycle<\/h1>\n

Opening a Period<\/h2>\n\n\n
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Accounting period setup can be deferred until prior reconciliation. In which a closing period must be created.<\/div>\n
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1.<\/span>Navigate Menu: Finance > Accounting Processes > Period Management<\/div>\n
2.<\/span>Click New Closing Period<\/div>\n
3.<\/span>Set period begin and ending date<\/div>\n
4.<\/span>Set Financial Year End if necessary<\/div>\n
5.<\/span>Click Create<\/div>\n
6.<\/span>Continue with Reconciliation<\/a><\/u>, Depreciations, Provisions, Accruals<\/font><\/div>\n
7.<\/span>Preparation for Closing Period<\/a><\/u>.<\/font><\/div>\n
8.<\/span>Perform post-audit Financial Adjustment<\/a><\/u>.<\/font><\/div>\n
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Annual setup<\/b><\/div>\n
<\/b>A typical year end closing period consists of 12 months with the Financial-Year-End<\/u> set to Yes.<\/div>\n
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Non 12-months setup<\/b><\/div>\n
<\/b>Financial year ending with more or less than 12 months is possible, just set the period ending date accordingly.<\/div>\n
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Reconciliation<\/h2>\n\n\n\n\n
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The reconciliation process is to match and explain any discrepancies between your ledger and the bank’s statement. Each discrepancy must be resolved within a reasonable timeframe.<\/div>\n
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Step 1: Creating Reconciliation<\/b><\/div>\n
1.<\/span><\/b>Navigate Menu: Finance > Accounting Process > Reconciliation<\/div>\n
2.<\/span>Click New Reconciliation<\/div>\n
3.<\/span>Select Account<\/div>\n
4.<\/span>Set Period begin & ending date<\/div>\n
5.<\/span>Enter Statement Balance<\/div>\n
6.<\/span>Create<\/div>\n
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Step 2: Matching Transaction<\/b><\/div>\n
7.<\/span><\/p>\n
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<\/b>Open Tab: Matching<\/div>\n

8.<\/span><\/p>\n
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Check transaction that matches your bank statements<\/p><\/div>\n

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Step 3: Matching Prior period<\/b><\/div>\n
9.<\/span><\/p>\n
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<\/b>Check transaction that matches your bank statements<\/div>\n

10.<\/span>Click Update<\/div>\n<\/td>\n
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Step 4: Explaining Outstanding<\/b><\/div>\n
11.<\/span><\/p>\n
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<\/b>Open Tab: Explaining<\/div>\n

12.<\/span><\/p>\n
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Provide reasons & provide explanation<\/p><\/div>\n

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Step 5: Adding missing transactions<\/b><\/div>\n
<\/b>Transactions may take place externally that are not in your ledgers yet.<\/font><\/font><\/div>\n
13.<\/span><\/p>\n
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Enter each missing transactions for future reconciliation resolution<\/p><\/div>\n

14.<\/span>Update<\/div>\n
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Step 6: Completing Reconciliation<\/b><\/div>\n
15.<\/span><\/b>Change Status to Complete<\/b><\/div>\n

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Closing a Period<\/h2>\n\n\n
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Once the closing preparation is completed, you can close the period. This process provides you with a quick view of a list of any pending documents that are still open.<\/div>\n
1.<\/span>Navigate Menu: Finance > Accounting Process > Period Closing<\/div>\n
2.<\/span>Select the current period<\/div>\n
3.<\/span>All documents of the period must be confirm or cancelled<\/div>\n
4.<\/span>When the checklist are good to go, Change status to Close<\/div>\n
Audit Package<\/b><\/div>\n
5.<\/span><\/b>You have the option to export the audit package for audit purposes.<\/b><\/div>\n<\/td>\n
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Post-closing Adjustment<\/h2>\n\n\n
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Post-closing adjustments are necessary when correctional or audit adjustments occurs. These adjustments shall be made into the new period but will be shown in the previously closed period.<\/div>\n
<\/div>\n
1.<\/span>Navigate Menu: Finance > Journal Entry<\/div>\n
2.<\/span>Click New Journal Entry<\/div>\n
3.<\/span>Set date to first day of the new period, and time to 12:00am<\/div>\n
4.<\/span>Describe adjustment accordingly<\/div>\n
5.<\/span>Expand Advance Options and set Audit Adjustment to Yes<\/div>\n
6.<\/span>Begin entry adjustment item accordingly<\/div>\n
7.<\/span>Create, and then change status to confirm<\/div>\n<\/td>\n
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<\/div \n\n","protected":false},"excerpt":{"rendered":"

Closing Cycle Opening a Period Accounting period setup can be deferred until prior reconciliation. In which a closing period must be created. 1.Navigate Menu: Finance > Accounting Processes > Period Management 2.Click New Closing Period 3.Set period begin and ending date 4.Set Financial Year End if necessary 5.Click Create 6.Continue with Reconciliation, Depreciations, Provisions, Accruals […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":224,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"guide.php","meta":{"_wp_rev_ctl_limit":""},"categories":[22,6],"tags":[24,9,23],"_links":{"self":[{"href":"http:\/\/community.cloudby.co\/knowledge\/wp-json\/wp\/v2\/pages\/229"}],"collection":[{"href":"http:\/\/community.cloudby.co\/knowledge\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"http:\/\/community.cloudby.co\/knowledge\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"http:\/\/community.cloudby.co\/knowledge\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/community.cloudby.co\/knowledge\/wp-json\/wp\/v2\/comments?post=229"}],"version-history":[{"count":10,"href":"http:\/\/community.cloudby.co\/knowledge\/wp-json\/wp\/v2\/pages\/229\/revisions"}],"predecessor-version":[{"id":352,"href":"http:\/\/community.cloudby.co\/knowledge\/wp-json\/wp\/v2\/pages\/229\/revisions\/352"}],"up":[{"embeddable":true,"href":"http:\/\/community.cloudby.co\/knowledge\/wp-json\/wp\/v2\/pages\/224"}],"wp:attachment":[{"href":"http:\/\/community.cloudby.co\/knowledge\/wp-json\/wp\/v2\/media?parent=229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/community.cloudby.co\/knowledge\/wp-json\/wp\/v2\/categories?post=229"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/community.cloudby.co\/knowledge\/wp-json\/wp\/v2\/tags?post=229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}