Period close
Reconcile each entity's operational balances, review currency adjustments and close the books.
7 stages · 2 approvals
Roles and responsibilities
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Step 1Prepare
Task NumberPeriodKindCutoff AtAR
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Step 2Reconcile operations
Task NumberPeriodKindCutoff AtAR
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Step 3Reconcile finances
Invoice NumberAccountInvoice DateNet Amount
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Step 6Post and reconcile
Task NumberPeriodKindCutoff AtAR
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Step 7Close
Task NumberPeriodKindCutoff AtAR
Process steps
Follow the process from start to finish. Select a step to see who acts and what changes.
Prepare
Accountant establishes the entity, accounting period and current task population. Retain source revisions and cutoff evidence for subledgers, interfaces and manual entries. Confirm that late documents retain their original dates while any posting uses an eligible period. A prior task completion is insufficient if its underlying sources have changed.
Reconcile operations
Warehouse Manager reconciles owned stock, transit, returns and receipt accrual. Production Manager and Shop Floor Supervisor reconcile open production with Accountant. Physical warehouse quantity and away goods have separate evidence. Trace remaining WIP, allocated completion costs and unresolved losses; a closed shipment or work order cannot conceal an unposted obligation or remove owned value.
Reconcile finances
Accountant checks AR, AP, unapplied cash, supplier prepayments, credits, refunds, bank statements and tax balances against their controls. Distinguish instructions from settlement and local postings from external delivery acknowledgment. Resolve duplicate, missing and uncertain effects before accepting the current source population; do not clear a discrepancy through an unsupported balancing entry.
Calculate revaluation
Accountant prepares closing-rate adjustments for eligible remaining monetary sources, using reviewed rates and current functional carrying amounts. Subledger detail and its control account cannot both represent the same exposure. Settled scope stays excluded. Physical stock at standard and operational quantity changes do not become monetary revaluation simply because their purchase used another currency.
Approval required
Approve revaluation
Independent Finance Manager reviews the exact rate, source population, proposed adjustment and current revision. Missing rates, unresolved carrying values or changed sources block posting. The decision cannot authorize a different batch later; a material correction requires renewed review before any financial effect.
Post and reconcile
Accountant posts the approved eligible adjustment and rechecks balanced functional journals and their source controls. Preserve prior revaluation so later settlement recognizes only its new exchange difference and reclassifies prior unrealized exchange without another net gain. Repeated execution cannot create a second journal for the same approved effect.
Approval required
Close
Independent Finance Manager reviews current completed dependencies and closes the entity period. Required stock, WIP, cash, accrual, tax and interface exceptions must be resolved, with evidence appropriate to each balance. Subsequent corrections use the controlled period and approval path, preserving the original close and posted history.
Approvals and exception handling
2 approvals required in this process
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Approve revaluation
Finance Manager signs · post and reconcile waits
RevaluationRuns, ApprovalDecisions -
Close
Finance Manager signs · closes the process
AccountingPeriods, CloseTasks, ApprovalDecisions - Source changes invalidate affected reconciliation evidenceDecisions.
- Entity books remain separate; cross-entity trading is not an internal warehouse transfer or automatic consolidation.
- Standard-cost changes require their own reviewed inventory valuation effects, preserving released production snapshots.
- Revaluation uses current carrying valuesDoes not assume an automatic next-period reversal.
- Cutover uses one complete opening ledger plus nonposting detail. Historical quantities and settlements do not replay as new operations.
- Technical message retries cannot substitute for accounting evidence or reopen a closed period.
When the process needs attention
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variance
Reconcile finances
Resolve duplicate, missing and uncertain effects before accepting the current source population; do not clear a discrepancy through an unsupported balancing entry.
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exception
Close
Required stock, WIP, cash, accrual, tax and interface exceptions must be resolved, with evidence appropriate to each balance.
Records and postings
| Stage | Records | Effect |
|---|---|---|
| 1 Prepare | EntitiesAccountingPeriodsCloseTasks | Establish the entity cutoff and current dependencies |
| 2 Reconcile operations | InventoryPositionsStockLayersWorkOrderCostEntriesQualityHoldsReturnsCloseTasks | Reconcile remaining owned quantity, value and operational obligations |
| 3 Reconcile finances | InvoicesBillsCashReceiptsPaymentsCreditApplicationsBankStatementLines | Reconcile each financial source to its control |
| 4 Calculate revaluation | RevaluationRunsRevaluationLinesExchangeRates | Prepare one adjustment per eligible remaining exposure |
| 5 Approve revaluation | RevaluationRunsApprovalDecisions | Independently authorize the exact current adjustment |
| 6 Post and reconcile | JournalEntriesJournalLinesRevaluationLinesCloseTasks | Post once and reconcile the resulting balances |
| 7 Close | AccountingPeriodsCloseTasksApprovalDecisions | Independently close the reconciled entity period |
Process reports
All reportsInventory and Valuation
As-of net posted StockMovements and remaining StockLayers by entity/product/site/location/lot/serial, separating available, held, picked, unissued production staging and same-entity transit, with issued material/WIP shown separately from WorkOrderCostEntries; quantities/value reconcile once to inventory and WIP controls, supplier arrivals not yet accepted shown separately without owned value.
Cash and Bank Reconciliation
Actual bank/statement matches, unsettled and uncertain instructions, reserved source balances, unapplied customer cash and supplier prepayment/credit/return chains by entity/currency; transport responses do not stand in for settlement.
Receivables and Payables Aging
As-of posted debit balances net actual allocations/credits/corrections by entity/party/document currency and due-date bucket, with functional carrying reconciliation; unapplied cash, supplier prepayments and surplus credits remain separate and are never silently netted across parties/entities.
Trial Balance and Financial Statements
Posted JournalLines at each entity's period cutoff produce trial balance, income statement and balance-sheet mappings, with source-reconciled control balances; each legal entity balances independently without automatic consolidation, foreign-operation translation or eliminations.
Quality and Traceability
Actual inspected population/sample/characteristic results, independent disposition, active hold and exact lot/serial input-to-output/dispatch/return lineage; first-pass yield uses unique eligible units at their first completed pass, rework separately disclosed, missing/incomplete inspections excluded from passed denominators and shown as pending.
Run by an agent
Agent support
An assistant cannot provide a required independent human approval, invent an inspection result or turn a plan into completed production. It cannot use a sales estimate as an accepted order, release held goods without the required quality decision, or treat an uncertain bank response as settlement. Material changes require the applicable renewed review.
# Example after configuration
$ curl -fsSL https://www.erp.ai/skill.md | paste into your agent
› period close · prepare on Entities, AccountingPeriods, CloseTasks
✓ Accountant establishes the entity, accounting period and current task population.
› period close · reconcile operations on InventoryPositions, StockLayers, WorkOrderCostEntries, QualityHolds, Returns, CloseTasks
✓ Warehouse Manager reconciles owned stock, transit, returns and receipt accrual.
› period close · reconcile finances on Invoices, Bills, CashReceipts, Payments, CreditApplications, BankStatementLines
✓ Accountant checks AR, AP, unapplied cash, supplier prepayments, credits, refunds, bank statements and tax balances against their controls.
› period close · calculate revaluation on RevaluationRuns, RevaluationLines, ExchangeRates
✓ Accountant prepares closing-rate adjustments for eligible remaining monetary sources, using reviewed rates and current functional carrying amounts.
› period close · approve revaluation on RevaluationRuns, ApprovalDecisions
⏸ approval · waiting for the finance manager
# 2 more stages after approval: post and reconcile, close
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Procure to pay
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Count and adjust
Count a controlled stock population and review the exact quantity and value before correction.
7 stages · 2 approvals