Period Close Workflow
The period close workflow orchestrates the sequence of activities required to complete financial reporting and consolidation for a period. Activity flow guides users with a sequence of tasks that are required to execute for consolidation processes. Each flow consists of a group of tasks to be performed by assigned users. As the execution of the activities progresses, the data status and protection rules are automatically updated.
Period Close Process Overview
Task groups for period close may include data collection, financial analysis, financial reporting, and consolidation. These task groups may be cross-functional, with members from different departments or teams, and work together for a defined period of time until the close is achieved.
Workflow Structure - Workflow includes sequence of activities through which the period close is achieved. Workflow controls initiation, assignment and completion of activities based on conditions defined in workflow definition.
Status Progression - Activities progress through Open, Submit, and Approve statuses. As the execution of the activities progresses, the data status and protection rules are automatically updated.
Data Collection and Input
Users complete assigned tasks to input financial data, typically covering entity financials such as Income statement and Balance sheet. Tasks represent single pieces of work to be done by user or to be automatically executed based on conditions defined in workflow.
Data Validation - When a user updates the activity status, the system automatically marks all existing tasks in the flow as complete. If any task is configured with a validation check, the system will perform the check and prevent the submission of the instance if any validation fails.
Control Validation - Automatic control validation occurs when users attempt to complete tasks or activities linked to Sheets, Snippets, or Boards with assigned Controls. This ensures data quality is enforced at the point of task submission.
Automated Calculations and Adjustments
Carry Forward Opening Balances - The Carry Forward rule automatically transfers the previous year's closing balances to the current year opening balance for the data preparation of the balance sheet data for consolidation.
Currency Conversion - Based on Ownership structure, convert entity data from local currency to common group currency for consolidation reporting.
Intercompany Eliminations - Eliminate transactions between entities within the group/subgroup based on ownership relationships.
Automatic Journals - Period-end journal entries are created and populated based on data and rules, and posted automatically, eliminating considerable manual period-end work.
Note: Rules defined are executed in the sequence they are defined to address dependencies. Currency Conversion, Intercompany Eliminations, Automatic Journals are considered Actions under Automatic Entries.
Forecasting
The Intelligent Forecasting feature uses historical data trends to predict future values using advanced algorithms. Users can either select automatic algorithm or specific manual forecasting algorithm based on their data characteristics and requirements.
The forecasting system analyzes historical patterns in your data to generate predictions for future periods. For optimal results, the system works best with at least five years of historical data when predicting one year ahead, or one year of data when forecasting up to three months. Users can specify the source data, target metrics, time periods, and destination versions for their forecasts.
Review and Validation
Data Detail Review - Users can review financial data with distinct Debit, Credit, and Balance columns for clear interpretation. Right-click on the required cell and select View Data Details from the list.
Control Snippet Monitoring - Sheets containing control metrics automatically display a default Control Snippet with color-coded status values, allowing users to instantly visualize control health.
Workflow Submission
After completing all assigned tasks, change the activity status from Open to Submit. Navigate to Sheet where an activity is listed. Change the status from Open to Submit. The system automatically refreshes to apply the status update. Once refreshed, all member selection and data modification options will be blocked.
Important: Once the status is changed, the system prevents any further modifications, ensuring data integrity and preventing unintended changes.
Approval and Period Lock
Workflow Approval - Reviewers approve submitted activities, progressing them to Approve status.
Lock Versions - Administrators can lock versions to prevent users from modifying data within specific versions. When you lock a version, users cannot enter new data, update existing values, clear data, run formulas, or copy data to that version. This control applies to all data modification operations, ensuring version integrity for finalized actuals or approved budgets.
Locked Property - The lock functionality uses a "Locked?" property in the dimension master data for scenario-type dimensions. When you check the "Locked?" option for a version, the system blocks all data modification attempts and displays a warning message to users. A lock icon appears beside locked version members, providing a visual indicator of their protected status.
Data Locking by Time - Data Locking by version and time prevents accidental data changes during specific time periods. If you try to save input data or run calculations outside the allowed period for the selected version, you'll receive an error message indicating that the Version-Time combination is not permitted for posting.
Cycle Completion
Each cycle can be set to Completed, once all the activity Instances are completed and approved, using the Completed button at the header of the Cycle pane. Each cycle can be tracked and monitored with detailed real-time progress. User collaboration, monitoring, and audit information are transparently made available on the dashboard.
Monitoring Throughout the Process
Event Log - The execution status can be monitored in the Event Log. Logs ensure traceability and audit readiness, providing a complete record of all actions taken during period close.
Real-Time Progress - Process monitoring provides real-time access to financial data and progress status, enabling stakeholders to track completion and identify any issues during the close process.