Record to report / R2R – General Accounting Book Closures

Happy Valentine’s day to all our readers….

In our last post, you saw that book closure is a simple background process, except in situations where the procedure gets held up on account of errors.

One thing I missed in the last post, another major reason for a hanging and an incomplete entry. Most of the ERP systems are online, the servers hosting these systems may be located at some other place as compared to the spot from where the entries are being made. Network based packet drops are quite common. So while the upload of the transaction is being uploaded, a split second network packet drop would upload incomplete information on to the server.

One should not really confuse this book closure process with the book closure by public limited companies when a joint stock company declares dividends or bonus issues, there has to be a cut-off date for such benefits to be transferred to the shareholders.

Believe me, if you attempt to google this process from an accounts outsourcing / accounting department perspective, most of the results will actually be related to the cut off date referred to above.


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