Month-end closing overview

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Month-end closing is an accounting procedure that finalizes and closes out all financial activity for a business for the preceding month.

In 1C:Drive, the month-end closing procedure includes the following operations:

Operation	Purpose
Verify tax invoices	Checks whether a tax invoice is issued for each sales invoice and credit note.
VAT calculation	Calculates VAT payable and VAT receivable totals for the month.
Accrue depreciation	Calculates monthly depreciation for fixed assets.
Calculate direct costs	Calculates adjusted cost of materials written off as expenses.
Allocate costs	Calculates adjusted cost of manufacturing operations performed.
Calculate actual cost	Calculates adjusted cost of products manufactured.
COGS calculation for POS with retail inventory method	Calculates costs of products that were sold from points-of-sale (POS) with Retail inventory method.
Calculate exchange rate differences	Calculates exchange rate differences for currency balances.
Temporary accounts closing	Transfers balances from all temporary accounts to permanent accounts.

After month-end closing procedure is completed, month-end closing documents are generated and month-end closing report becomes available.

To perform month-end closing, use the Month-end closing workplace. To open it:

1. Go to Company.
2. Under Financial transactions, click Month-end closing.

For more details, see Month-end closing workplace.

For detailed information on how each month-end closing operation functions, see Month-end closing technical details.

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