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

# Month-end close

> A step-by-step guide for finance teams to close accounting periods in Orb

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](https://app.withorb.com/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)

<Info>
  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.
</Info>

### 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.

<Warning>
  Closing a period also closes all prior open periods. You cannot have gaps between closed periods.
</Warning>

### 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

<Warning>
  Reopening a period also reopens all following periods. This ensures no gaps between open and closed periods.
</Warning>

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:

| Action                                            | Revenue impact                              | Billings impact                                         |
| ------------------------------------------------- | ------------------------------------------- | ------------------------------------------------------- |
| Invoice issued for closed period                  | Recognized on first day of next open period | Recorded on first day of next open period               |
| Credit note for closed period                     | Adjustment on first day of next open period | Adjustment on first day of next open period             |
| Subscription cancelled backdated to closed period | Adjustment on first day of next open period | Credit 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](/data-exports/introduction) 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](/integrations-and-exports/netsuite) or [QuickBooks](/integrations-and-exports/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