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Closing Period 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 closing in MKG.

 

 

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

 

 

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

 

 

3. Process the actual costs
To accurately record the cost of an order in MKG, the actual costs must be processed. This is the third step in the period closing. After meeting the outstanding needs, hours must be finalized, and production orders must be completed. »

 

 

4. Determine the work in progress value
The fourth step in the period closing is determining the WIP 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, 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 closing. Evaluate if there is inventory that needs to be revalued based on the 'Inventory List at Reference Date.' After revaluing items, make the transaction entry. »

 

 

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

 

 

7. Close the period
After all bookings 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 finalized, close the period. This is the seventh step in the period closing. »

 

 

8. Manage the financial reporting
The final step in the period closing is managing 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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