Finance

Period close

Also called: Month-end close · Locked period

The point at which an accounting period is locked and no further postings may change it.

For incentive programmes the important consequence is that every engine — accrual, adjustment, billing, settlement — must validate against the lock before writing. An engine that can post into a closed period will eventually restate one.

The second consequence is that the base transaction data must be stable. An accrual computed from lines that can still move underneath it is not really closed, whatever the ledger says.

Related terms

Accrual

The liability or receivable recognised as a rebate is being earned, before it is actually settled.

GL reconciliation

Proving that the incentive subledger — accruals, claims, settlements and adjustments — agrees with the general ledger.

Accrual review

A staging step where computed accruals are examined and approved before they post to the ledger.

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