Soft Close Preparation

This page outlines the tasks that should be completed before performing the year-end soft close.

Paying Prior-Year Purchase Orders

Before the soft close, pay only prior-year purchase orders with a G/L Date in the prior year.

After the soft close, pay only prior-year purchase orders with a G/L Date in the current year.

Closing Prior-Year Purchase Orders

Prior-year purchase orders should be soft closed when the invoices associated with prior year expenses against those purchase orders have been received and posted through Accounts Payable. This is generally from 15 to 60 days, but varies by organization.

Note: Note: During this time, do not pay current-year invoices against prior-year purchase orders. Doing so will cause an imbalance between the purchase order's encumbrance balance and the General Ledger's encumbrance balance between years.