Skip to main content
This guide walks through the month-end close process in Orb, from pre-close preparation through final reconciliation.

Pre-close checklist

Before closing an accounting period, verify the following:

1. All invoices are issued

Draft invoices represent unbilled revenue. Before closing:
  • Review draft invoices in the Invoices page filtered by status
  • Determine if any drafts should be issued or voided
  • For usage-based invoices, confirm the grace period has elapsed (default: 12 hours after period end)
Invoices issued after you close an accounting period will have their revenue recognized on the first day of the next open period as a catch-up adjustment. This is expected behavior that maintains closed period integrity.

2. Credits are reconciled

Review prepaid credit activity for the closing period:
  • Check for credits expiring during the period (recognized as revenue on expiration date)
  • Verify credit consumption matches expected usage patterns
  • Review any credit grants or adjustments made during the period

3. Subscription changes are complete

Backdated subscription changes affect revenue recognition:
  • Review any mid-period cancellations (generate credit notes for in-advance fees)
  • Confirm plan changes and upgrades are reflected in invoices
  • Check for pending subscription changes that should be applied

Closing an accounting period

Step 1: Navigate to Reports settings

Go to Settings > Reports in the Orb dashboard. You’ll see a list of accounting periods with their current status.

Step 2: Close the period

Click Close on the accounting period you want to finalize.
Closing a period also closes all prior open periods. You cannot have gaps between closed periods.

Step 3: Wait for lock confirmation

After clicking Close, the period enters a lock pending state while Orb’s systems process any in-flight data. This typically takes a few minutes. Once complete, the period shows as Closed.

Post-close reports

After closing, run the following reports to verify your numbers:

Recognized revenue report

This report shows revenue recognized during the closed period. Navigate to Reports > Recognized Revenue and filter to the closed period. Key things to verify:
  • Total recognized revenue matches your expectations
  • Revenue is attributed to the correct service periods
  • No unexpected catch-up adjustments from prior periods

Billings report

This report shows invoiced amounts during the closed period. Navigate to Reports > Billings and filter to the closed period. Compare against:
  • Total invoices issued during the period
  • Expected recurring revenue from active subscriptions
  • Any one-time charges or adjustments

Deferred revenue report

This report shows your liability—revenue billed but not yet recognized. Common sources of deferred revenue:
  • Unused prepaid credits (based on cost basis)
  • In-advance fixed fees not yet earned
  • Annual subscriptions billed upfront

Unbilled revenue report

This report shows revenue recognized but not yet invoiced. Common sources of unbilled revenue:
  • Usage-based charges accruing on draft invoices
  • In-arrears fixed fees during the service period

Reconciliation checks

Revenue should converge to billings

Over time, recognized revenue equals billed revenue. For any completed subscription:
Total Recognized Revenue = Total Billed Revenue
This may not balance for active subscriptions due to timing differences.

Deferred + Unbilled = Outstanding obligations

At any point in time:
Deferred Revenue = Billings - Recognized Revenue (when billings > recognized)
Unbilled Revenue = Recognized Revenue - Billings (when recognized > billings)
A customer can have both deferred and unbilled revenue simultaneously on different line items.

Period-over-period consistency

Compare your closed period against prior periods:
  • Total recognized revenue trend
  • Deferred revenue balance changes
  • New vs. recurring customer revenue mix

Reopening a closed period

If you need to make corrections to a closed period:
  1. Go to Settings > Reports
  2. Click Open on the closed period
Reopening a period also reopens all following periods. This ensures no gaps between open and closed periods.
After making corrections:
  • Re-run the reports to verify changes
  • Close the period again when ready

Handling backdated actions

When billing activity occurs for a closed period, Orb handles it automatically:
ActionRevenue impactBillings impact
Invoice issued for closed periodRecognized on first day of next open periodRecorded on first day of next open period
Credit note for closed periodAdjustment on first day of next open periodAdjustment on first day of next open period
Subscription cancelled backdated to closed periodAdjustment on first day of next open periodCredit note adjustment on first day of next open period
This “catch-up” approach ensures closed periods remain immutable while still capturing all billing activity.

Data freshness

Report data in Orb is refreshed continuously. After closing a period:
  • Invoice data: Available within 20 minutes of issuance
  • Usage-based revenue: Available after grace period ends
  • Credit consumption: Updated in real-time as usage occurs
For the most up-to-date information, check the “Last updated” timestamp on any report.

Exporting closed period data

For integration with external accounting systems:

Via data exports

Configure data exports to sync billing data to your data warehouse. The Daily Line Item Revenue Event resource includes lock_adjusted_timestamp for accounting period compliance.

Via accounting sync

Use the NetSuite or QuickBooks integration to sync invoices directly to your ERP.

Via CSV export

Export individual reports to CSV from the Reports page for manual reconciliation.

Troubleshooting

Period won’t close

If a period remains in “lock pending” status for an extended time, contact Orb support. This may indicate in-flight data that needs to complete processing.

Revenue doesn’t match expectations

  1. Check for catch-up adjustments from prior period activity
  2. Verify all expected invoices were issued
  3. Review credit consumption and expiration timing
  4. Confirm subscription changes were applied correctly

Deferred revenue balance seems wrong

  1. Verify prepaid credit cost basis is set correctly
  2. Check for in-advance fees that should be recognized
  3. Review credit expiration dates

Unbilled revenue is unexpectedly high

  1. Check for draft invoices that should be issued
  2. Review usage-based charges still accruing
  3. Verify grace period has elapsed for usage invoices