Closing an accounting period, both at the legal entity level and the enterprise accounting period level, is a formal act that signifies all transactions within that period are posted from sub-ledger to your enterprise general ledger.
Required Editions
| Available in: Lightning Experience |
| Available in: Enterprise, Unlimited, and Developer Editions with Revenue Management (formerly Revenue Cloud) |
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The feature is available for the Invoice and Credit memo records, and their related records with the Revenue Cloud Advanced license or the Revenue Cloud Billing license. This feature is available for the Payment, Refund, and Debit Memo records, and their related records with the Revenue Cloud Billing license. Contact your Salesforce account executive for more information. |
Closing an accounting period is a critical step in the accounting cycle that ensures accuracy and finality of financial statements.
- Accurate transaction details: When accounting periods are closed, transaction records are updated to have the latest closing balances. These closing balances are copied as the opening balances for the next period.
- Prerequisite to close legal entity accounting period: Closing the previous period and creating next period is often a prerequisite for fully recognizing transactions in the current period.
- Prerequisite to close next period: Closing the current period is often a prerequisite for fully recognizing transactions in the subsequent period, maintaining a clean progression of financial cycles.
Example: Streamlining Accounting Period Closure
Continuing with Innovate Solutions Corp.'s journey, after successfully assigning legal entities to accounting periods and the system associating the billing transactions with their accounting periods, they further streamline their accounting period closures.
- Streamlined Legal Entity Accounting Period Closure: At the end of the month, accounting teams close the legal entity accounting periods. A maximum of 3 Data Processing Engine (DPEs) definitions are run automatically based on the licenses your Salesforce org has, to close the legal entity accounting period.
- Accounting Period Closure: After all legal entity accounting periods for a period were closed across all legal entities, the accounting period itself is closed, indicating the accounting period is closed as well in there enterprise general ledger.
This comprehensive process significantly reduces time to reconcile and improves audit readiness for Innovate Solutions Corp.