Overview
Period close in Fincelo handles situations where revenue needs to be recognised in a period that may already be closed. Fincelo presents 3 paths based on materiality — the CFO chooses, and the decision is logged with name + timestamp.
The 3 Paths
Path A — Low Materiality (below 3% of avg monthly revenue)
- Recognise full catch-up in the current open period
- Single approver: Finance Manager
- Fastest resolution — no period reopening needed
Path B — Medium Materiality (3%–10% of avg monthly revenue)
- Recognise catch-up in current period with enhanced disclosure note
- Single approver: CFO or Controller
Path C — High Materiality (above 10% of avg monthly revenue)
- Reopen the locked period and post a correcting entry
- Two approvers required: CFO (primary) + Controller (secondary)
- GSTR-1 conflict check runs automatically
GSTR-1 conflict detection applies only to Path C. If the locked period already has a filed GSTR-1 return, Fincelo raises a conflict flag and requires dual approval before any entry is posted.
GSTR-1 Conflict Check
When Path C is selected:
- Fincelo checks if the locked period has a filed GSTR-1
- If yes → conflict flag raised
- Dual approval required: CFO + Controller
- GSTR-1 amendment flag raised for the next filing
What Fincelo Never Does
- Never backdates invoices
- Never auto-selects a path — CFO always decides
- Never posts to a locked period without dual approval on Path C
- Never overrides a filed GSTR-1 without flagging it
Period Close Prediction
Before month-end, the Period Close Agent predicts:
- Which path is most likely based on pending POs and deferred revenue
- Recommended prep actions
- Whether CFO block is recommended
This gives your team 3–5 days to prepare instead of discovering issues at close.
