Month-end close, start to finish

Close is not one action. It is four short routines, then the close itself. Run them in this order every month.

1. E1

   Create the prepaid

   Enter the original amount, start date, number of months and remaining amount. Creation posts Dr 1400 Prepaid Expenses / Cr 1010 Bank.

   Finance → Prepaid Expenses → New Prepaid
2. E2

   Amortize each month

   Each month click Amortize. The system records a run, posts Dr 5000 Operating Expenses / Cr 1400 Prepaid, and reduces the remaining balance.

   Finance → Prepaid Expenses → Amortize

Create an accrual with a description, month and amount. It posts Dr 5000 Operating Expenses / Cr 2100 Accrued Liabilities. You can create several per month.

Once the real cost is known, reverse the accrual to post Dr 2100 / Cr 5000 in the accrual's period.

1. E3

   Create the asset

   Enter code, cost, salvage value, useful life in months and method. Acquisition posts Dr 1600 Fixed Assets / Cr 1010 Bank.

   Finance → Fixed Assets → New Asset
2. E4

   Record depreciation

   Each period click Record Depreciation. Straight-line and declining-balance are supported. Posts Dr 5100 Depreciation Expense / Cr 1500 Accumulated Depreciation, capped at salvage.

   Finance → Fixed Assets → Record Depreciation
3. E5

   Dispose, never delete

   To remove an asset use Dispose and enter the disposal date and proceeds.

   Finance → Fixed Assets → Dispose

Create a transaction with the from entity, to entity (they must differ), date, amount and currency. It posts Dr 1150 Intercompany Due-from / Cr 2150 Intercompany Due-to, converted to base currency. Mark it reconciled when the counterparty confirms. Deleting posts a reversal.

1. 01

   Confirm the date range

   Check that no transaction is dated outside the period you are closing.

2. 02

   Post or void draft journals

   Open the journal list and clear every DRAFT entry.

3. 03

   Close

   On close the system posts a closing entry that zeroes all revenue and expense accounts for the period and moves the net result to 3000 Retained Earnings — credit for profit, debit for loss.

   Accounting → Accounting Periods → Close

After close the period is locked: no new postings can be dated in it. The Balance Sheet balances because closed profit is now in equity, while open-period profit appears as Current Period Earnings.

Setup: base USD, open period 2026-06, one warehouse Main, one variant CABLE-10MM, customer Acme, vendor CableCo.

1. 01

   Buy

   PO-001 for 100 × CABLE-10MM @ 10 (USD 1,000) → submit → ops gate → finance gate → APPROVED (no GL). Receive → Dr 1300 Inventory 1,000 / Cr 2050 GRNI 1,000; stock on hand 100.

2. 02

   Invoice and pay the vendor

   Purchase invoice 1,000 → Dr 2050 GRNI 1,000 / Cr 2000 AP 1,000. Pay 1,000 → Dr 2000 AP 1,000 / Cr 1010 Bank 1,000.

3. 03

   Adjust

   A stock count finds 2 damaged units → Adjust Stock −2 (no GL; on hand 98).

4. 04

   Sell

   SO-001 for 20 units @ 25 → approve (allocates 20; available 78) → Fulfil (on hand 78, ISSUE movement; no GL).

5. 05

   Invoice the customer

   INV-001 for 500 net + 10% tax = 550 → submit → approve → Dr 1200 AR 550 / Cr 4000 Revenue 500 / Cr 2300 Tax 50. Receipt 550 → Dr 1010 Bank 550 / Cr 1200 AR 550.

6. 06

   Port

   Register container MSCU1234567 (AT_PORT). Create operation OP-001 (IMPORT, Acme, warehouse Main, port charges 300). Link haulage trip TRP-009. Issue a gate pass for the truck and driver. Advance gate-in with cargo lines → inventory RECEIPT. Advance to DELIVERED, then RETURNED. Issue the waybill, then the delivery order.

7. 07

   Port invoice

   Raise the operation invoice 1,200 → approve → Dr 1200 AR 1,200 / Cr 4000 Revenue (net) + 2300 Tax. Link it to OP-001. Receipt 1,200 → Dr 1010 Bank / Cr 1200 AR.

8. 08

   Demurrage

   Container sat 1 day past a 3-day free time @ USD 40 → Bill now → a DRAFT demurrage invoice plus an approval queue row → approve → Dr 1200 AR 40 / Cr 4100 Demurrage Income 40. Receipt 40 → Dr 1010 Bank / Cr 1200 AR.

9. 09

   Close

   Confirm GRNI (2050) = 0, AP for CableCo = 0 and AR for Acme = 0, then close period 2026-06.

10. 10

    Check

    Open Container Profitability, Demurrage Invoiced vs Collected and the Balance Sheet.

• Every operational document for the month is entered — POs, receipts, invoices, receipts of cash, trip expenses and advances.
• Prepaid expenses amortized for the month.
• Accruals booked, and prior accruals reversed where the real cost is known.
• Depreciation recorded for the month.
• Intercompany transactions recorded and marked reconciled.
• Suspense (9000) reviewed and reclassified.
• GRNI (2050) nets to roughly zero for received-and-invoiced POs.
• AR (1200) and AP (2000) agree to their aging reports.
• No DRAFT manual journals remain.
• Period closed, then the Balance Sheet and P&L reviewed side by side.