This lesson explain about integrated process of both month-end and year-end closing.
Pre Closing activities that begin in the old month include :
- Technical : Open new accounting period (FI)
- FI : Enter accrueal / deferral, process recurring entries and bad debt expense in AR, post depreciation and interest expense in asset accounting
- Technical : Close sub ledger (FI) preliminary close of G/L
Closing activities for external purposes include :
- Foreign currency valuations and financial statement adjustments
- Final closing of the old period
- Creating external and internal reports
Year end closing process, are performed in addition to the regular month-end closing process for the final period of the fiscal year.
Pre-closing activities that begin in the old month include :
- Technical : Open the first accounting period of the new fiscal year
- Balance Confirmation for customer / vendor
- Fiscal year change and balance carry forward
Closing activities for external purposes :
- GR/IR clearing account analysis, receivables and payables reclassification, reconciliation of prior year to new year and other adjustment postings
- Final Closing of the old period
- Creating external and internal reports
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