Closing Accounting Period in Netsuite

Hi All,

In this post we are going to talk about closing an Accounting Period in Netsuite.
If you want to read about
Accounting period click here.
Account click here.
Accounting Context click here.

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What is Accounting Period close Or Closing of Accounting Period?

Closing accounting period means changing status from open to closed.Closed status which indicates
that posting transaction for the period have been completed and no more transactions can be
post on closed accounting period.

Closing a period is a final step, before closing a period , review ,reconciliation to ensure correctness and balance is required.

How to Close Account? 

Step 1:
     Open an Accounting period :
      Go to Setup > Accounting > Manage G/L > Manage Accounting Periods.

How to go to accounting periods

Step 2:
     Do Period close checklist:
      A period Close checklist for each period is available from the Manage Accounting Periods page.
     From this checklist. you can complete required task in sequence and then close the period.

Step 3: After performing all task of checklist , you can close accounting period.

** Please Note: You can open only last accounting period directly, if you want to open accounting period which is in between of closed accounting period then you have to open Accounting period one by one from latest till Accounting period you really want to open. Example: If we have Jan, Feb and March Accounting period and you want to open Feb, then you have to open March first and then you can open Feb.

Using Quick Close to Close Periods:
    The Quick Close preference enables you to close one or more accounting periods with a single click.
    This time-saving preference is useful when you have reopened one or more closed accounting periods
    to make a change. With Quick Close, Netsuite marks complete all tasks in all reopened accounting

    periods, eliminating the requirement to close them one-by-one.

    For example, you must make a change in the January 2016 accounting period.
    you reopen the period, which reopens all of the subsequent closed periods.
    you make my change. With Quick Close, you can close the January 2016 period and all subsequent
    periods at the same time.

The Quick Close preference is also useful when you prefer a one-click method for closing accounting
periods. For example, you are the sole proprietor of my business. you process all accounting transactions.
you do not want to step through each task on the period close checklist to close your accounting periods.
with Quick Close, you can close each period with a single click.

*** Quick Close is automatically granted to administrators.   

 Enabling the Quick Close Preference

If your user role is granted both the Set Up Accounting and Period Closing Management permissions and
you want to use Quick Close, you must enable the Allow Quick Close of Accounting Periods preference.
Go to Setup > Accounting > Preferences > Accounting Preferences.
On the General subtab under the General Ledger section,
click the Allow Quick Close of Accounting Periods box and then save.

This preference does not appear in user roles that do not have the Period Closing Management permission.

Approving Transactions from Closed Periods
Transactions that are subject to approval must be approved before posting. Their posting periods are
determined upon approval. The actual posting period may vary from the period displayed on transaction
entry forms and unapproved records.

If the originally displayed period is closed at the time of approval, the posting period is determined by the
accounting preference Default Posting Period When Transaction Date in Closed Period(See image below). If the period that matches the transaction date is locked and the approver does not have the
Override Period Restrictions permission, the system behaves as if the period is closed.

Default Posting Period When Transaction Date in Closed Period

We hope that this post will help you in understanding process. If you have any query , please let us know
in our FB Group/Page.

Thanks
Netsuite Guru


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