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Standard Procedure

Month-End Close — North America Ledger

Acme Corporation

The end-to-end procedure General Accounting follows to lock the period, reconcile sub-ledgers, post adjustments, and publish the consolidated trial balance to FP&A by WD+5.

Document OwnerPriya Mehta — Controller, North America
DepartmentFinance — General Accounting
Date
Document TypeStandard Procedure
SOP IDSOP-FIN-014
Version3.2
Effective Date
Next Review Date
Approver(s)Dan Okafor — VP Finance
ClassificationInternal · Finance Controlled
Related DocumentsSOP-FIN-011; SOP-FIN-018; POL-FIN-002
Revision History
Version Date Author Approver Summary
3.22026-04-01Priya MehtaDan OkaforAdded BlackLine 90% auto-match threshold to §7. Updated FX rate sources (BOC, ECB).
3.12025-10-15Priya MehtaDan OkaforRenamed entity ACME-CA to ACME-CA-01 to align with new CoA.
3.02025-04-01Dan OkaforJanet LiuSwitched intercompany elimination from manual JE to IC-ELIM saved search.
2.42024-09-01Marcus TanJanet LiuWD+5 sign-off (down from WD+7) following close-acceleration project.
1. Purpose

This procedure standardises the monthly close for the North America consolidated ledger in NetSuite. It ensures that all sub-ledgers (AP, AR, Inventory, Fixed Assets, Payroll) are reconciled to the GL, that recurring and adjusting entries are posted on the correct period, and that a signed trial balance is delivered to FP&A by Workday +5 (WD+5).

2. Scope and Out-of-Scope

In Scope: All US and Canadian entities — ACME-US-01, ACME-US-02, ACME-CA-01. Sub-ledgers covered: Accounts Payable, Accounts Receivable, Inventory, Fixed Assets, Payroll.

Out of Scope: Mexico entity ACME-MX-01 (see SOP-FIN-019). Tax provision and statutory filings (see SOP-FIN-021). Year-end close adjustments (see SOP-FIN-018).

3. Trigger / When to Execute

The close window opens at 17:00 PT on the last business day of the month (WD0). The on-rotation Senior Accountant starts at WD0; the Controller signs off no later than WD+5 17:00 PT. Trigger is monthly and non-skippable — if a step fails, halt and route to §10 Exception Handling.

4. Roles and Responsibilities
Role R A C I Responsibility
Senior AccountantExecutes steps 1–8, drafts variance memo, distributes close package.
Controller, NAReviews TB, approves adjustments > $25k, signs off the period close.
FP&A LeadConsulted on variance memo; receives close package by WD+5.
VP FinanceInformed of close completion and any material exceptions.

R = Responsible   A = Accountable   C = Consulted   I = Informed

5. Prerequisites / Preconditions
6. Inputs

Bank statements (BMO, Chase, Stripe) for the closing month; FX closing rates (BOC noon rate for CAD, ECB reference rate for EUR, BoE for GBP); approved recurring-JE batch JE-REC-MONTHLY; intercompany activity report from US-01, US-02, CA-01.

7. Procedure

STEP 01

Lock all sub-ledger periods in NetSuite Period Manager.

Navigate to Setup → Accounting → Manage Accounting Periods. For the current period (e.g. Mar 2026), set every sub-ledger column to Locked except GL, which stays open. Confirm the lock icons turn solid before moving on.

Manage Accounting Periods — FY26 Q1
PeriodAPARINVFAPayrollGL
Jan 2026LockedLockedLockedLockedLockedLocked
Feb 2026LockedLockedLockedLockedLockedLocked
Mar 2026LockedLockedLockedLockedLockedopen
Apr 2026openopenopenopenopenopen
Fig 1 — Mar 2026 with all sub-ledger columns locked; GL remains open.
Note: If any sub-ledger row still shows open, the sub-ledger owner has not finished their cutoff. Do not force the lock — ping them in #fin-close-ops first.
STEP 02

Run a preliminary trial balance and save it as TB-PRE-YYYYMM.

From Reports → Financial → Trial Balance, set period to current month, currency USD, basis Accrual. Export to PDF and save to /finance/close/2026-03/01_pre_tb.pdf. This is your "before adjustments" reference.

Tip: Add a column for "Variance vs Prior Month" by clicking Customize → Add Comparison Column → Prior Period. Anything ≥ 8% variance gets a yellow flag in the close package.
STEP 03

Post the recurring journal-entry batch JE-REC-MONTHLY.

Open Transactions → Financial → Make Journal Entries → Recurring. Filter by template MONTHLY-RECUR. Review the 14 templated entries (rent allocations, prepaid amortisation, depreciation accruals, lease ROU step-down). Click Post All. Confirm 14 confirmation toasts appear before proceeding.

Recurring journals — Mar 2026
JE#TemplateDebitCreditAmountStatus
JE-7841RENT-ALLOC-DC6210-DC032105-PRE38,400.00Ready
JE-7842SAAS-PREPAID6320-IT1410-PRE12,150.00Ready
JE-7843LEASE-ROU-FB6240-FAC2210-ROU91,200.00Ready
JE-7844DEPR-OFFICE6410-DEP1510-ACC8,775.00Ready
+ 10 more recurring entries…
Fig 2 — Recurring batch queued for posting. All 14 entries have completed the approver chain.
STEP 04

Reconcile bank, credit card, and merchant clearing accounts.

Pull statements from BMO, Chase, and Stripe into BlackLine. Auto-match should clear > 95% of items; remaining exceptions need a journal-entry classification or a follow-up ticket to AP. The clearing accounts (1020-CLR, 1025-CLR) must end at $0.00 before sign-off.

Stop if: any clearing account has a non-zero balance after auto-match. Do not force-close — open a ticket in #fin-close-ops and tag @ap-lead.
STEP 05

Settle intercompany positions between US-01, US-02, and CA-01.

Run the IC-ELIM saved search. Counter-balanced pairs auto-eliminate; any orphan (a Due From with no matching Due To) triggers an entry the receiving entity must accept. Push to the intercompany clearing queue and notify the CA-01 controller (Mei Chen) by email.

STEP 06

Run FX revaluation for non-USD balances.

Use the WD+2 closing rate (BOC noon rate for CAD, ECB reference rate for EUR, BoE for GBP). From Transactions → Financial → Currency Revaluation, select the period and click Calculate & Post. NetSuite generates a JE per FX-denominated account; review the total realised/unrealised gain in 4910-FX.

Currency revaluation — Mar 2026
EntityCurrencyRate (WD+2)Exposure (FCY)USD equiv.Gain/(Loss)
ACME-CA-01CAD0.73141,820,400.001,331,442.00+ 8,210.40
ACME-US-02EUR1.0842410,000.00444,522.00– 2,148.00
ACME-US-01GBP1.267192,500.00117,206.75+ 412.10
Fig 3 — FX revaluation preview. Net gain posted to 4910-FX is + $6,474.50.
STEP 07

Run consolidation across the three entities into ACME-NA-CONS.

Navigate Reports → Financial → Consolidate Subsidiaries. Select ACME-NA-CONS. The script will roll up balances, apply elimination entries (from step 5), and translate CA-01 to USD using the WD+2 rate. Wait for the "Completed — 0 errors" banner; capture a screenshot for the close package.

STEP 08

Generate the final trial balance and route to Controller for review.

Save as TB-FINAL-2026-03.pdf. Open the variance review (a side-by-side of TB-PRE vs TB-FINAL) and walk the Controller through any account that moved > $10k or > 5%.

STEP 09

Approve sign-off in the close checklist and lock the GL.

In Setup → Period Manager, set the GL column from open to Locked. NetSuite will refuse the lock if any unposted JE remains; clear them or roll them to the next period.

STEP 10

Distribute the close package to FP&A and Investor Relations.

Bundle the TB, variance memo, FX summary, and IC elimination report into /finance/close/2026-03/PACKAGE.zip. Email the package to fpna@acmecorporation.com with the subject "Mar 2026 close — final".

8. Outputs

Signed final trial balance (TB-FINAL-YYYYMM.pdf); consolidated balance sheet and P&L; variance memo with commentary on accounts moving > 5% or > $10k; intercompany elimination report; FX revaluation summary. All artefacts archived to /finance/close/YYYY-MM/ and retained for 7 years per POL-FIN-002.

9. Success Criteria / Postconditions
10. Exception Handling
If…Then…
A sub-ledger owner has not confirmed cutoff by WD0 16:00 PTPing in #fin-close-ops; escalate to the Controller after 30 min. Do not start step 1 until confirmed.
BlackLine auto-match clears < 90% of bank itemsPause the close. Open a P2 ticket to treasury@acmecorporation.com and reschedule step 4 by one business day.
IC elimination leaves an orphan > $5,000Notify the originating entity's controller; book a manual elimination JE only with VP Finance approval.
FX revaluation rate sheet not yet publishedUse the prior day's closing rate and flag the variance memo for FP&A review.
GL refuses to lockRun Reports → Audit → Open Transactions for Period; clear or roll each one. If > 5 orphan entries, escalate.
11. References