Learn how to manage the finance period close in Precoro to ensure data integrity, audit compliance, and accurate financial reporting.
TABLE OF CONTENTS
Accounting Period Close Feature Overview
At the end of each reporting period (month, quarter, or year), the accounting team reconciles financial data and finalizes reports. To ensure data integrity, no changes should be made to existing documents, and no new expenses should be added.
Precoro’s Accounting Period Close feature allows you to fully lock finance periods, preventing modifications or new document creation for closed periods to ensure compliance with audits and accurate financial reporting.
How to Enable the Accounting Period Close Feature
To set up the Accounting Period Close, follow the steps below:
Step 1: Enable the Checkbox
- Go to Configuration → Basic Settings → Document Setup.
- Check the Accounting Period Close box.
Step 2: Select the Closing Period
- Choose the Closing Period:
- Monthly/Quarterly/Yearly—automatically close periods at a set frequency.
- Specific Date—Manually define the closing date.
- Select a day to lock the previous period:
- If the “Monthly,” “Quarterly,” or “Yearly” option is selected, choose a day (1-28) in the “Next period closes on” field to lock the previous finance period.
For example, if you select “9 day,” then on the 9th of each month (for Monthly), all documents from the previous month and earlier will be locked. After the 9th, documents with a due date before or on the last day of the previous month will be non-editable, and no new documents can be created for those dates.
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If the “Specific date” is selected, users will no longer be able to edit or create documents with a due date on or before the selected closing date.
For instance, if the closing period is set to “04.03.2025,” documents with due dates like 28.02.2025, 03.03.2025, or 04.03.2025 will be locked. Attempting to edit or create such documents will trigger a warning pop-up.
Step 3: Select the Closing Method
You can choose between two closing methods:
- Allow editing after the user confirms the warning about the closing period: If selected, a warning pop-up will appear if users attempt to edit a document within the closed period. Once confirmed, they will be able to proceed with changes.
- Block editing after the warning: If selected, users won’t be able to proceed with any changes to the documents within the closed period.
💡Please note: Super Users can perform all actions on documents in the closed period and will receive pop-up warnings during these actions, regardless of the closing method.
Step 4: Save the Configurations
Once all adjustments are made, click Save to apply the changes.
Working with Items in the Closed Period
If the financial period is closed, users can perform any actions with items in documents with a Draft status.
If the financial period is closed and the document is in the In Revision, Pending, Matching, Pending Receipt, or Approval Review status:
- Any actions with items can be performed once a pop-up warning is confirmed if the “Allow editing after the user confirms the warning about the closing period” option is enabled.
- Item-related buttons will be non-clickable if the “Block editing after the warning” option is enabled.
Working with Documents in the Closed Period
The Accounting Period Close setting applies to all documents within the closed period. This means that if a document’s due or delivery date falls within this period, you will not be able to create or edit it in Precoro.
To create or edit the document in a closed period without restrictions, change the due/delivery date to a date outside the closed period. Once done, all actions on the document will be re-enabled.
The closed period restricts actions in documents based on the following date fields:
- Warehouse Request (WR) – Delivery Date
- Purchase Requisition (PR) – Delivery Date
- Invoice – Due Date
- Receipt – Receipt Date
- Purchase Order (PO) – Delivery Date
- Invoice (Standard or via OCR) – Due Date