Month-end close
In one sentenceA set of tasks at the end of each month that completes adjustments and reconciliations and blocks changes to the closed month, so its reports are final.
Simply put
Month-end close usually includes: bank reconciliation, depreciation, accrual and prepayment entries, inventory reconciliation, and reviewing the trial balance.
After the close, the system blocks entries dated in that month except with a special permission, so figures you gave management or declared for tax do not change.
Example
An accountant at a distribution company closes each month on the fifth day of the following month: he reconciles the banks, posts depreciation, records accrued salaries, then closes the period in the system and sends the reports to management.
Don't confuse it with
Closing entriesClosing entries are annual and bring revenues and expenses to zero, while the month-end close locks the period without zeroing the accounts.
in FullScreen ERP
The periodic depreciation entry is posted to the general accounts without manual entry. Fixed assets