Period closure
Accounting period closure is a predefined procedure in RamBase which is mandatory to work through for each accounting period.
Two main purposes
To gain a more correct statement of expenditures and revenues in the period.
To control that there are consistency between the general ledger postings and the "real world" (reconciliations).
To a certain extent, the procedures are to be carried out in a specific order and approved by a financial manager.
If needed and desired, period adjustments of supplier invoices and sales invoices are created.
Correct cost of goods is calculated by transferring the inventory and product transaction values to the ledger. The calculation also considers the measurement problems according to which period transactions can be counted as stock value.
Several reconciliations must be approved.
Agio for foreign currency balance sheet entries are calculated.