ManualDoc:PeriodEndClose To FinancialReportBusinessFlow

Introduction

Period End Close to Financial Report business flow addresses daily accounting activities as well as the life-cycle of an accounting period.
It also includes the business processes for the production of internal and external financial and tax reports.

This business flow is primarily executed within Openbravo Financial Management // Accounting application area.

Due to its complexity and different roles involved it is convenient to split Period End Close to Financial Report down into below main sub-processes:

• Opening an accounting period - this stage implies to open the accounting periods previously created according to the company accounting periods definition.
• Manual booking of accounting entries - once a period is opened it is possible to manually book the ledger accounting entries needed; ledger entries which are not the result of an automatic document posting.
• Accounting Reporting - available accounting reports can be launched at any time with the aim of reviwing the accounting data booked and get a sense about the company accounting status.
• Tax Reporting - available tax reports can be launched at any time with the aim of reviwing the fiscal data booked and get a sense about the company obligations with the tax authorities.
• Closing the accounting period - an accounting period can be closed whenever all the accounting events for that period have been properly booked and reviewed and once the accounting period is over.
  At that time the accounting reports launched are the final ones for that period, therefore those ones are the ones the company can use to understand the company financial and accounting status for that period.

The abstract "Period End Close to Financial Report" business process is defined by the following diagram:

Roles Involved

The following roles are involved within this process:

• Finance role is in charge of managing accounting, company financial and tax reports generation and submission as well as closing each accounting period.

Relationship with other Business Flows

"Period End Close to Financial Report" business flow is fully integrated with below listed business flows:

Procure to Pay
Supplier invoices accounting is a key financial data to take into account.

Order to Collect
Customer invoices accounting is a key financial data to take into account

Receivables and Payables Management
As the finance department needs to have up to date and reliable data about accounts receivable and payable as its disposal, information which is also a key part of the financial and tax reporting.

Bank Statement to Bank Reconciliation
As bank statement reconciliation can be posted and therefore can be part of the financial reporting.

Asset Acquisition to Dispose
As asset amortization must be posted and must be part of the financial reporting.

Inventory Accuracy
Due to the fact that the inventory can also be post, therefore inventory accounting will also be part of accounting and financial reporting.

Please follow Financial Management // Accounting application area to understand how Period End Close to Financial Report business flow is executed in Openbravo.

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