Closing off of monthly ledger accounts.Gives a clear indication of where a company is financially.Income, expenditure , debts and exceptions and irregularities .Also gives company a chance to correct any incorrect financial transactions or postings, which have taken place.
An accounting procedure undertaken at the end of the month to close out the current posting period. It is part of a company's closing operations. Types of accounting procedures addressed in month-end closing can include depreciating fixed assets, reconciling inventory discrepancies, settling work in progress material, posting billing documents, and payroll. See also day-end closing, year-end closing.
من قبل
Faisal Ba-aqeel , Procurement and Facility Manager - KSA , Delivery Hero
It is a financial procedure to close the related transactions of the current month (short term) can include most of financial operations and It is a part of controling the whole year calculation.
Regards,
To make all the accounting transaction in all modules ( AP / AR / BK / GL / INVENTORY ) and then posted To GL after that make the necessary adjustments to make sure that all accounts in P& L and BS is the same balances and coded according to internal Co. procedures by the month end in order to make the financial statements for the Co. by the end of each month, finally make all the transactions happened within the month to know the financial position for the company.
This includes recording loan payments, reducing the value of business assets by their depreciation, writing off any bad debts and recording entries for prepaid expenses. The month-end report is also used to review the past month's transactions and make sure everything has been properly recorded. If your accounts do not balance, the month-end report is a time to correct any accounting errors.
