Month-End (Period) Close

This guide covers the period close lifecycle — the sequence of steps an organisation completes at the end of each month (or custom period) before moving to the next accounting period.

Overview

Period close ensures all transactions for the month have been captured, validated, and reconciled before the period is sealed. PinkApple uses a SOFT_CLOSED → HARD_CLOSED two-stage model.

Stage	Meaning	Posting Allowed?
OPEN	Normal operations — all posting channels active	Yes
SOFT_CLOSED	Preliminary close — routine posting blocked; admin adjustments allowed	By exception only
HARD_CLOSED	Final close — no further posting under any circumstances	No

TIP

HARD_CLOSE is reserved for year-end. Period close uses SOFT_CLOSE only, allowing governed reopening if adjustments are needed.

Close Readiness Check

Before closing a period, run the close readiness check from the Fiscal Period Management screen:

1. Navigate to Accounting → Fiscal Periods
2. Select the Business Unit
3. Click the Check Close Readiness action on an OPEN period

The system evaluates:

• Unposted batches: GL batches in DRAFT or OPEN state that haven't been posted
• Pending approvals: Journals awaiting approval chain completion
• SL ↔ COA mismatch: Sub-ledger balances that don't reconcile to their control COA accounts
• Open till sessions: Teller sessions that haven't been closed

Each blocker displays the owning user, business unit, journal date, and approval chain progress.

Closing a Period

Once all blockers are resolved:

1. Open the period row action → Close Period
2. Optionally add an action note
3. Submit — the period moves to SOFT_CLOSED

The system performs:

• Final SL ↔ COA reconciliation verification
• Period state update for the selected business unit
• Activity log entry

Period-End Automated Actions

Before closing, run these from the Period-End Actions menu:

Accrual Auto-Reversals

Entries with an auto_reverse_date within the period are automatically reversed. This handles month-end accruals that should reverse at the start of the next period.

FX Revaluation

Revalues foreign-currency COA balances at the period-end exchange rate:

1. Click Period-End Actions → Run FX Revaluation
2. Optionally specify an as-of date (defaults to today)
3. The system posts revaluation gain/loss entries using the FX_REVALUATION_GAIN and FX_REVALUATION_LOSS tagged COAs

WARNING

Ensure exchange rates for all active foreign currencies are up to date before running revaluation.

Intercompany Elimination

For multi-business-unit organisations, eliminate intercompany receivables/payables:

1. Click Period-End Actions → Run IC Elimination
2. Specify an as-of date
3. The system nets confirmed intercompany transactions and posts elimination entries

Recurring Journals

Recurring journal templates with a next_execution_date within the period are executed automatically during end-of-day processing. Verify all recurring entries have posted before closing.

Reopening a Period

If adjustments are needed after SOFT_CLOSE:

1. Click the Reopen Period action (requires REOPEN_FISCAL_PERIOD permission)
2. Provide an action note explaining the reason
3. The period returns to OPEN status

DANGER

Reopening a period is a governed action. The approval workflow and audit trail capture who reopened, when, and why.

Permissions

Permission	Description
OPEN_FISCAL_PERIOD	Open a period for posting
CLOSE_FISCAL_PERIOD	Soft-close a period
REOPEN_FISCAL_PERIOD	Reopen a soft-closed period
RUN_FX_REVALUATION	Execute FX revaluation
RUN_IC_ELIMINATION	Execute intercompany elimination
VIEW_FISCAL_PERIOD_CLOSE_READINESS	View close readiness report

Best Practices

• Run close readiness check before attempting to close
• Complete FX revaluation and IC elimination before closing
• Use action notes to document every close and reopen
• Establish a monthly close calendar with clear deadlines per step
• Assign period close responsibility to a specific role (e.g. Finance Manager)