> ## Documentation Index
> Fetch the complete documentation index at: https://docs.fincelo.app/llms.txt
> Use this file to discover all available pages before exploring further.

# Period Close

> How Fincelo manages month-end close with 3-path resolution and GSTR-1 conflict detection.

## 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

<Warning>
  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.
</Warning>

***

## GSTR-1 Conflict Check

When Path C is selected:

1. Fincelo checks if the locked period has a filed GSTR-1
2. If yes → conflict flag raised
3. Dual approval required: CFO + Controller
4. 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.