A disciplined and thorough period-end close process is fundamental to accurate financial reporting. NetSuite provides a structured checklist to guide controllers and accountants through the necessary steps to lock down a period. This guide provides a fact-checked and expanded overview of the standard month-end close process in NetSuite.

The Period Close Checklist

NetSuite's formal Period Close Checklist can be found by navigating to Setup > Accounting > Manage Accounting Periods and clicking the checklist icon next to a period. This tool provides a sequence of tasks that must be completed in order.

Phase 1: Pre-Close Transaction Review

Before you can begin the formal close process, you must ensure all transactional data for the period is complete and accurate.

• Transaction Entry: Confirm all invoices, vendor bills, and expense reports for the period have been entered and approved.

• Subledger Reconciliation: Run reports to ensure your Accounts Receivable (A/R) and Accounts Payable (A/P) subledgers tie to their respective control accounts on the general ledger.

• Bank and Credit Card Reconciliation: Reconcile all bank and credit card accounts for the period.

• Inventory Adjustments: Complete any necessary inventory counts and post all inventory adjustments.

Phase 2: Standard Close Processes

Once the transactional data is settled, you can proceed with the formal close tasks within the NetSuite checklist.

Phase 3: Final Close and Review

1. Close the Period: The final step in the checklist. Once a period is marked as Closed, no one, not even an administrator, can post to it without reopening it.

2. Post-Close Review: Run your key financial statements (Income Statement, Balance Sheet, Cash Flow Statement) for the closed period. Compare the results to your budget and to prior periods, investigating any significant variances.

   
   

Best Practices

• Use the Checklist: Always use the formal Period Close Checklist in NetSuite. It provides a clear audit trail and ensures that steps are performed in the correct order.

• Create a "Pre-Close" Saved Search: Build a saved search that shows all transactions in the period that are still pending approval. Run this search before you begin the close process to catch any stuck transactions.

• Permissions are Key: The ability to post to a locked period is controlled by the "Override Period Restrictions" permission. Be extremely cautious about which roles are granted this permission. If you find transactions are being posted to locked periods, it is almost always due to a user with this override capability.

• Don't Rush: A rushed close is the primary cause of errors. Take the time to perform each reconciliation and review step thoroughly.