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Period Closure Checklist

To accurately depict the financial result at the end of a period (year, quarter, month), a number of steps must be taken. This checklist serves as a guide for performing the period closure in MKG.

 

 

1. Update the process-based entries
Process-based entries are all entries resulting from the purchase and sales processes. Updating these entries is the first step in the period closure. Use the Purchase Orders Action List and the Sales Orders Action List for this. »

 

 

2. Update the manual entries
The second step in the period closure is updating all manual entries. Think of manual purchase and sales invoices, bank statements, cash transactions, and periodic items such as accrued assets and payroll journal entries. »

 

 

3. Process actual costs
To fully and accurately record the cost price of an order in MKG, the actual costs must be processed. This is the third step in the period closure. After solving the outstanding demand, the hours must be definitively processed and production orders completed. »

 

 

4. Determine the WIP value
The fourth step in the period closing is determining the work in progress value. Use the 'Order List Financial' to report production orders financially ready that no longer belong in work in progress. After determining the WIP value, you make the transaction entry. »

 

 

5. Determine the inventory value
Do you manage inventory? Then you need to determine the inventory value. This is the fifth step in the period closure. Evaluate if there is inventory that needs to be revalued based on the 'Inventory List at Reference Date.' After revaluing items, you make the transaction entry. »

 

 

6. Process the fixed assets
The sixth step in the period closure is processing the fixed assets. Reviewing the investment account and cost accounts is necessary to activate the posted amounts for the period and deactivate fixed assets that need to be removed from the records. »

 

 

7. Close the period
After all entries are recorded, they need to be reviewed. Evaluate the trial balance, check the VAT return, and close the VAT period. Once the entries in all journals are definitively processed, close the period. This is the seventh step in the period closure. »

 

 

8. Prepare the financial reporting
The final step in the period closure is preparing the financial reporting. Once all financial transactions are correctly processed, various reports can be generated in MKG. This includes not only mandatory reporting to the Tax Authorities but also various internal reports. »

 

 

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