Overview

Required plan

This feature is included in Recurly Revenue Recognition Advanced. Learn more here.

Additional cost

This feature or setting requires an additional cost. Please reach out to your Recurly account manager or support for more pricing details.

Definition

Month End Close is a formal process that ensures all revenue-related transactions are accurately captured and reconciled before closing one period and opening the next. It involves verifying data, checking for exceptions, reconciling reports, and transferring journal entries.

Key benefits

Accurate financial reporting: Ensures your data is complete and consistent for each period.
Reduced errors: Identifies and resolves exceptions (e.g., holds, missing allocations) before closing.
Streamlined workflows: Simplifies the process of reconciling revenue and transferring journal entries.

How to do Month End Close

To properly close a month in Recurly Revenue Recognition, follow these steps in order. Avoid opening the next period until each step is completed.

Stage data verification

Make sure there are no unprocessed transactions or errors in the Contract Stage and Documents Stage Reports.

Verification of exception reports

Review SSP and Hold Exception Reports and address any issues requiring allocation or hold removal.

Reconciliation of reports

Compare Asset, Liability, Revenue Waterfall, and Revenue Insight Reports to ensure they match.

Transferring journal entry

Approve and transfer journal entries to your GL, making sure unaccounted balances are zero.

Closing the period

Finalize the current period, open the next, and allow new transactions to flow into RevRec.

1. Stage data verification

Go to Reports → Contract Stage Report for the open period.

Go to Reports → Documents Stage Report for the open period.

Verify there are no unprocessed transactions or errors for the current period.
- Resolve errors before proceeding, or they won’t be included in the closed period’s numbers.
- For large datasets, download the reports to assist with troubleshooting.

2. Verification of exception reports

SSP Exception Report
- Go to Reports → Exception Reports and select SSP Exception.
- Ensure no contracts that require SSP allocation are listed. If a contract needs allocation, create a new SSP with an active date preceding the contract date and then re-run allocation using the Revenue Workbench.
Hold Exception Report
- Go to Reports → Exception Reports and select Hold Exception.
- Confirm that any items on hold are meant to be on hold. If you need to remove a hold so revenue is recognized, open the contract in Revenue Workbench and manually release the appropriate amount.

3. Reconciliation of reports

Run the Asset Report, Liability Report, and Revenue Waterfall Report for the period.

The sum of the scheduled columns in the Asset and Liability Reports should match the total in the Revenue Waterfall for the period.
Run the Revenue Insight Report.

The scheduled balance in Revenue Insight should also match the Revenue Waterfall total.
Confirm these reports are aligned before proceeding.

4. Transferring journal entry

Go to Import/Export → Transfer JE.

Select the journal card for the primary book, review entries, and click Approve for Transfer.

If you’re pulling data via API, confirm it populates in your accounting system.
- If manual, download the Journal Entry and upload it based on your internal process.
Wait for the reports to refresh (it may take up to an hour for large datasets).
- Re-run Asset and Liability Reports. The Unaccounted columns should be zero before proceeding.

5. Closing the period

Go to Import/Export → Period Close.

Click Open New Period (top right). Follow the prompts until the next period is open.

Once closed, the system will trigger new-period transactions to flow into RevRec.

Note: Before opening the next period, ensure all unaccounted balances are zero. If you see any remaining items, investigate and resolve them first.