GL Closing

GL Closing

The GL Closing function is used to close the General Ledger up to a specified date. Once the GL is closed, transactions dated on or before the closing date are treated as Closed and can no longer be edited or deleted through the normal system interface.

GL closing is an important accounting control and should be performed carefully. Users should ensure that all necessary accounting entries, adjustments and reconciliations for the period have been completed before closing the GL.

Accessing GL Closing

1. To access the GL Closing function:
   1. Navigate to Finance Mgt > Maintenance > GL Closing.
   2. The GL Closing screen will be displayed.

Closing the GL

1. Select the desired Closing Date using the calendar.
2. Review the selected date carefully to ensure that it is the intended accounting closing date.
3. Click the Close GL button.
4. The system will close the GL up to the selected date.
5. Once the GL has been closed, transactions within the closed period will be marked as Closed and cannot be edited or deleted through the normal transaction screens.
6. Important: Re-opening the GL

Re-Open the GL

1. Highnix allows users to re-open the GL if further accounting entries need to be posted for a previously closed period. This can be done by removing or changing the closing date and using the Close GL function again.
2. However, users must understand that re-opening the GL does not re-open transactions that were previously closed.
3. For example, if an invoice or journal entry was already marked as Closed when the GL was closed, re-opening the GL will allow new transactions to be entered, but the previously closed transaction will remain closed. It will not automatically become available for editing or deletion.
4. Therefore, GL closing should be treated as a serious accounting control and should not be used casually or repeatedly to facilitate changes to previously closed transactions.

Accounting Best Practice

1. It is not recommended to manually intervene in the database to change the status of closed transactions simply to make them editable.
2. Directly modifying accounting data in the database can affect the integrity and audit trail of the accounting records. Any correction to a closed transaction should, wherever possible, be handled using the appropriate accounting procedure, such as entering an adjustment, reversal or void transaction.
3. If a situation arises where a previously closed transaction genuinely needs to be modified and there is no appropriate standard system procedure to do so, Highnix Support can assist with the database intervention as a chargeable service. Such changes should only be carried out after the customer has confirmed and accepted the required adjustment.

Important Reminder

1. Before closing the GL, always ensure that:
   1. All transactions for the period have been entered.
   2. Required adjustments and corrections have been completed.
   3. The relevant accounts have been reviewed and reconciled.
   4. The closing date is correct.
   5. The GL does not need to remain open for any further changes to existing transactions.
2. Remember:
   1. Re-opening the GL allows new entries to be posted. It does not re-open previously closed transactions for editing or deletion.