The general ledger close is the point in the period-end process at which an organisation finishes posting to its general ledger for an accounting period and locks that period against further entries. It follows the subledger close, in which payables, receivables, fixed assets, payroll and other feeder systems post their totals. Accountants then book adjusting entries for accruals, prepayments, depreciation, provisions and revaluation of foreign currency balances, and run allocations and intercompany entries.
Before the period is locked, the team reviews the trial balance, agrees control accounts to their subledgers, clears or explains suspense items and completes each balance sheet reconciliation. Late or unusual entries are subject to journal entry approval. The close is performed at each month-end close and, with additional steps, at the quarter-end close and year end. The timetable, tasks and sign-offs are coordinated through financial close management.