Sequence is important while closing the periods

1. Cash Management
Complete all bank reconciliations.

2. Accounts Payable
First period to be closed is AP. CM must be reconciled before closing AP.

3. Accounts Receivable
AR can be closed with or after AP but CM must be reconciled.

4. Purchasing
AP must be closed before closing PO.

5. Fixed Assets
AP & AR must be closed before closing FA.

6. Inventory
CM must be reconciled & AP, AR, PO & FA should be closed before closing INV.

7. General Ledger
CM must be reconciled and AP, AR, PO, FA & INV should be closed before GL can be closed.