Closing procedure
The closing procedure is a common practice at organizations to finalize the monthly transactions and report the monthly financial reporting. The procedure varies from one company to another, but it has common steps between company departments.
The finance controllership department is responsible for the closing procedure, where accountants follow up with the operations department to confirm that they have posted the monthly transactions in the ERP. The following figure explains the closing procedure in detail:
All the departments in a company are involved in the monthly closing process. The Human resources department calculates the payroll and generates the payroll entry to be validated and posted by the general ledger's accountant.
The Procurement department ensures that they have confirmed all purchase orders to be received at the warehouse and the warehouse keeper confirms receiving them as it affects the inventory quantities and values. On the other side, the accounts...
