Periodic closure – The key for control

Today, companies management is expecting that the financial departments is contributing with up fresh data to support decisions and with a good overview over regulations.

If your answer is “no” to one or more of the questions below, you should continue reading to see how an effective and correct periodic closure can help your business:

•    Do the financial functions deliver what they are supposed to, in an effective manner and at desired cost?

•    Is reporting done in an appropriate manner?

•    Is your company focusing on the appropriate management parameters?

•    Does your company have the right competencies and capacities?

Experience shows that solid routines tied to an effective periodic closure gives:

•    Improved reporting and basis for analyses

•    Correct KPI’s and measurements

•    Improved budget and forecasting, and follow-ups

•    Effective transaction processes

•    Effective operation and organization of the financial function

•    More competent and content employees

An example of a periodic/monthly closure checklist with the use of Dynamics AX can be:





Open next period



Make sure that all delivered orders are invoiced (Status Sold)



Make sure that all received orders are posted (Status Purchased)



Updated exchange rated



Control and check all open finance/inventory journals etc.



Update fixed assets balance sheet



Carry out bank reconciliation



Draw balance list distributed by age, customers



Send out account statements/reminders to customers



Make sure that all costs of labor are issued and posted



Draw balance list distributed by age, suppliers



Carry out inventory/warehouse closing procedure



Post turnover



Close period



Draw trial balance



Draw profit and loss statement, balance report and division balance sheet



Draw stock value report and stock reconciliation



Draw cash flow forecasting and currency needs for the next period



Draw VAT-report, and report to authority



Report to management


(T = the first day in the next period)

This checklist will give your organization:

  • More effective periodic closure and reporting
  • Determined management and financial reporting
  • Effective budgeting, estimation and reporting
  • Improvement of structure and efficiency in the financial function
  • “Shared Service Center” and merger of financial functions possible

I appreciate that I can be a part of this worldwide blog community—as a consultant working from Norway, the blog lets me share more than 20 years of experience with Microsoft Dynamics 365. Along the way, I participated in developing retail, PDA/RF, barcoding, master data, kitting and WMS-solutions for Dynamics. My blog focuses on my deepest interests and expertise: along with a 360 degree view of digital transformation topics, I welcome opportunities to dive into retail and intercompany supply chain automation, logistics, and production—everything that is moving around in a truly connected enterprise. As Enterprise Architect on Dynamics 365, I specialize in strategic development and planning for corporate vertical solutions and works to build international networks that increase knowledge and understanding for Dynamics 365. As an advocate for both providers and customers, I'm committed to ensure that customers constantly changing needs are meet, and I see community as key for increasing expertise. I welcome you to connect with me.

0 comments on “Periodic closure – The key for control

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: