The Procurement Glossary » Period-End Close

Period-End Close

Finance & Payments

Definition

The accounting process of finalising the books at the end of a period, including reconciling procurement liabilities.

Explanation

The close depends on clean procurement data: matched invoices, cleared GRNI and accurate accruals. Delays and errors in P2P slow the close, which is why touchless matching and good data matter beyond procurement itself.

Example

Clearing the GRNI backlog before period-end close prevents last-minute accrual scrambles.

Related terms

• Accrual — An accounting entry recognising a cost that has been incurred but not yet invoiced or paid.
• Goods Received Not Invoiced (GRNI) — An accounting position where goods have been received but the supplier's invoice has not yet arrived or been processed.
• General Ledger (GL) — The central accounting record holding all of a company's financial transactions.
• Three-Way Matching — An invoice-control check comparing the purchase order, the goods-receipt record and the supplier invoice before payment.

Frequently Asked Questions

What is Period-End Close?

The accounting process of finalising the books at the end of a period, including reconciling procurement liabilities. The close depends on clean procurement data: matched invoices, cleared GRNI and accurate accruals. Delays and errors in P2P slow the close, which is why touchless matching and good data matter beyond procurement itself.

Can you give an example of Period-End Close?

Clearing the GRNI backlog before period-end close prevents last-minute accrual scrambles.

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