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Month-End Close Best Practices: Reviewing Batches, Subledger Entries, and Deferrals

Howard Tang

Month-end close is the finance review that confirms your financial activity has been posted, reviewed, and captured in the correct fiscal period before that period is closed. The most important parts of the review are your batch posting, subledger entries, GL account setup, and deferral activity. This article walks you through what to check in each area, common issues you may run into, and a checklist to work through before you close.

 

Table of Contents

 

What Month-End Close Does

Month-end close closes the selected fiscal period so that new accounting entries can no longer be pushed into that period.

In other words, closing the period helps protect the financial activity that has already been reviewed for that month. Once the fiscal period is closed, new batch postings, corrections, or accounting entries generally cannot be added to that period unless the period is reopened.

Month-end close does not necessarily mean every payment has settled through Rhythm Payments or a Rhythm-approved integrated payment processor. It is primarily a financial/accounting control that prevents additional entries from being posted into the closed fiscal period.

If your organization uses deferred revenue, deferrals are recognized based on the applicable deferral schedule. After the month-end close is completed, a monthly deferred revenue batch may be created for the recognized deferral activity.

 

Important: Batch Posting Creates Accounting Entries

Batch posting is not just a status change. Posting a batch creates the subledger entries that move financial activity into the appropriate accounting accounts.

When a batch is posted, Rhythm uses the configured accounts to create subledger entries for activity such as:

  • Invoices
  • Payments
  • Credits
  • Refunds
  • Discounts
  • Deferred revenue
  • Revenue
  • Accounts receivable

This means GL account setup matters before posting. If the AR, revenue, deferred revenue, discount, refund, or write-off accounts are missing or incorrect, the batch may either fail to post or post to the wrong accounts.

If a batch posts to the wrong accounts, correcting the setup afterward may not update the posted accounting entries automatically. The batch may need to be unposted and reposted after the account setup is corrected.

If the related fiscal period has already been closed, the fiscal period may need to be reopened before the batch can be unposted and reposted.

 

Recommended Month-End Close Review

Before closing a fiscal period, we recommend reviewing the following areas:

  1. Batches in error status
  2. Posted batches for the applicable fiscal period
  3. Subledger entries
  4. Related transactions on invoices
  5. Business Unit default GL accounts
  6. Product-specific GL accounts
  7. GL account mapping between Rhythm and your Financial Management System
  8. Deferred revenue schedules and the Deferral Waterfall report, if applicable
  9. Deferred Revenue batches after month-end close, if applicable

This review can help catch account setup, posting, mapping, or deferral issues before the fiscal period is closed.

 

Review Batches Before Month-End Close

Customers can review and manage batches from the Finance and Billing application.

Path: Finance and Billing App > Batches

To review batches in an error status, use:

Finance and Billing App > Batches > Status = Error

You can also use the available batch filtering options to narrow the results by specific criteria, such as batch name, date range, status, business unit, or other available parameters.

After selecting the desired filters:

  1. Click Search.
  2. Click Bulk Changes.
  3. Select the checkbox next to each applicable batch.
  4. Click Select Batches.
  5. Choose the appropriate bulk action.

Depending on your permissions and the status of the selected batches, available actions may include:

  • Posting batches
  • Unposting batches
  • Downloading batches

Bulk actions should be used carefully, especially when working with posted batches, closed fiscal periods, or batches tied to a Financial Management System such as QuickBooks Online.

Before using bulk actions, confirm:

  • The selected batches are the correct batches.
  • The batches are in the expected fiscal period.
  • Any related batches are included, if needed.
  • The GL account setup has been reviewed.
  • The batch has not already been downloaded, transmitted, reconciled, or included in external reporting.
  • Your finance team is aware of any unposting or reposting activity.

Note: Bulk posting, unposting, or downloading can affect accounting records, subledger entries, fiscal period activity, and financial system reconciliation, so these actions should be performed intentionally and with caution.
 

 

Review Posted Subledger Entries Before Closing the Fiscal Period

Before performing month-end close, it is a good idea to review the posted subledger entries for the applicable fiscal period.

Path: Finance and Billing App > Month End Close > Choose the applicable fiscal period > Select Subledger Entries

This review can help confirm:

  • Batches have been posted as expected.
  • Subledger entries were created.
  • Revenue, AR, deferred revenue, discounts, refunds, and write-offs are posting to the expected accounts.
  • Activity is included in the correct fiscal period.
  • Any incorrect account setup is caught before the fiscal period is closed.

If incorrect accounts are identified after posting, the batch may need to be unposted, the account setup corrected, and the batch reposted. If the fiscal period is already closed, the fiscal period may need to be reopened before the correction can be made.

 

Review Related Transactions and Subledger Entries on the Invoice

When reviewing an invoice, the Related Transactions tab shows transaction activity connected to the invoice. This may include related payments, credits, adjustments, or other financial activity tied to the invoice.

However, subledger entries are only generated and displayed after the related batch has been posted.

If the batch is still open or unposted, the invoice may show related transaction activity, but the finalized subledger entries will not appear yet.

 

Related Transactions vs. Subledger Entries

Related transactions show that financial activity exists against the invoice.

Subledger entries show the finalized accounting impact after the batch has been posted.

For example, an invoice may show a related payment on the Related Transactions tab before the batch has been posted. However, the subledger entries for that payment will not appear until the batch is successfully posted.

If you are reviewing an invoice and do not see subledger entries, the first step is to confirm whether the related batch has been posted.

 

Review Business Unit GL Account Settings

Business Unit accounting settings can be reviewed from the Finance and Billing application.

Path: Finance and Billing App > Setup > Billing > Business Units > Select the pencil icon for the applicable Business Unit

The Business Unit includes default global-level GL accounts. These defaults are used when posting batches and closing fiscal periods for that Business Unit.

Product-specific GL accounts may also be configured on individual products, event packages, membership packages, sponsorships, exhibits, or other sellable items.

In general:

  • Business Unit GL accounts act as the default accounting setup.
  • Product-specific GL accounts can be used when a specific item needs its own accounting treatment.
  • If required accounts are missing, the batch may not post.
  • If accounts are incorrect, the batch may post but create accounting entries against the wrong accounts.

 

Review Product-Specific GL Accounts and Deferral Settings

In addition to Business Unit defaults, individual products and packages may have their own financial configuration.

This may include product-specific accounts for:

  • Revenue
  • Deferred revenue
  • Accounts receivable
  • Discounts
  • Refunds
  • Write-offs

If deferred revenue applies, the deferral setup is configured from the product’s $ / financial configuration area.

This is important because batch posting uses the financial configuration that exists on the product or package when the transaction is posted. If the product’s GL accounts or deferral settings are missing or incorrect, the batch may fail, post to the wrong accounts, or create unexpected deferral schedules.

Customers should review product-specific GL accounts and deferral settings before launching new products, event packages, membership packages, sponsorships, exhibits, or other sellable items.

 

Relative Deferral Dates Based on Batch Date

For products or packages that use deferred revenue, Rhythm may use relative deferral dates based on the batch date, depending on the product’s financial configuration.

This means the deferral schedule may be determined by when the transaction is included in a posted batch, not only by the original order, invoice, or payment date.

Because of this, customers should review the product’s $ / financial configuration area to confirm how deferrals are configured before posting batches and before closing the fiscal period.

When reviewing deferrals, confirm:

  • Whether deferred revenue applies to the product or package
  • Whether the product uses fixed deferral dates or relative deferral dates
  • Whether the relative deferral schedule is based on the batch date
  • Whether the batch date is correct before posting
  • Whether the resulting deferral schedule matches the expected revenue recognition period

If the batch is posted with an unexpected batch date, the deferred revenue schedule may not align with the expected recognition period. If that happens, your finance team may need to review whether the batch should be unposted, corrected, and reposted before the fiscal period is closed.

 

Review QuickBooks Online / Financial System Settings

If your organization is integrated with QuickBooks Online or another Financial Management System, batch posting may also interact with your financial system configuration.

Path: Security and Settings > Integrations > Finance Automation

Depending on your configuration, posting may prepare, download, or transmit accounting activity to the connected financial system.

Before making corrections, confirm whether the batch has already been downloaded, transmitted, reconciled, or used in external financial reporting.

 

Review GL Account Mapping Between Rhythm and Your Financial Management System

If a GL account exists in Rhythm but does not exist in your Financial Management System, there is a high likelihood of a GL code mapping issue.

This can happen even when the product, package, or Business Unit appears to have the correct GL account selected in Rhythm. The connected financial system also needs to recognize the same GL account or GL code.

This is especially important for customers using QuickBooks Online or another Financial Management System integration.
 

What to Check

If the GL account appears correct in Rhythm but the batch fails, does not transmit, or does not process as expected, review the GL account in both systems.

Confirm:

  • The GL account exists in Rhythm.
  • The same GL code exists in the connected Financial Management System.
  • The GL code is mapped to the same GL account in Rhythm and the Financial Management System.
  • The account is active in the Financial Management System.
  • The account type is appropriate for the transaction, such as AR, revenue, deferred revenue, discount, refund, or write-off.
  • The account was not recently renamed, merged, inactivated, or deleted in the Financial Management System.

If the account exists in Rhythm but not in the Financial Management System, correcting the Rhythm product or Business Unit setup alone may not resolve the issue. The account must also exist and be active in the connected financial system, and the mapping must match.

 

Review Deferred Revenue and the Deferral Waterfall Report

If your organization uses deferred revenue, it is helpful to review the Deferral Waterfall report as part of your month-end close process.

Path: Reports > Deferral Waterfall > Deferral Waterfall

The Deferral Waterfall report shows a forecast of deferred revenue based on posted subledger entries and deferral schedules.

 

How the Deferral Waterfall Report Works

The Deferral Waterfall shows deferral entries based on transactions.

The column labels across the top represent deferral dates.

The row labels on the left represent transaction dates.

The values in the middle show how much revenue is being deferred or recognized for transactions in the specified month.

You can click an amount in the report to drill down into the transactions contributing to that deferral amount.

Because the Deferral Waterfall is based on posted subledger activity and deferral schedules, customers should confirm the product’s deferral setup before transactions are processed and before the fiscal period is closed.

 

Review Deferred Revenue Batches After Month-End Close

If your organization uses deferred revenue, Rhythm may create a deferred revenue batch after month-end close based on the applicable deferral schedules.

You can review deferred revenue batches from the Finance and Billing application.

Path: Finance and Billing App > Batches > Type = Deferred Revenue

Deferred revenue batches may or may not appear depending on your organization’s setup and activity.

For example, you may not see a deferred revenue batch if:

  • The fiscal period has not been closed yet.
  • Your organization does not use deferred revenue.
  • No transactions in the period have applicable deferral schedules.
  • The related transactions or batches have not been posted.
  • The deferral setup on the product or package does not apply to the period being reviewed.

If deferred revenue is expected, confirm that the applicable product or package has deferral settings configured in the product’s $ / financial configuration area and that the related transaction activity has been posted.

 

Common Issues to Resolve Before Closing the Fiscal Period

1. A Related Batch Is Still Open

One common batch posting error occurs when a payment references an invoice that belongs to another open batch.

Example error:

InvalidOperation: Payment PYMT1000305 references invoice INV-ORD1000653-1, which is in batch MAIN-aVcAbGJxP94UZ849TUuS7J and has a status of open. Please make sure this batch is posted before posting this one.

This means the payment and invoice activity are related, but they are not being posted together.

Recommended action: review the error message and identify the related payment, invoice, or batch. If the error references another open batch, try selecting and posting the related batches together.

 

2. Required AR or GL Accounts Are Missing

Another common issue occurs when a product, event package, membership package, sponsorship, exhibit, or other sellable item is missing required accounting setup.

This can happen when the person creating the event, product, or package is not the same person responsible for configuring the GL accounts.

For example, an event or registration package may be created and opened for registration before Finance has assigned the required GL accounts. The batch may then fail when Rhythm tries to post the accounting entries.

Recommended action: review the financial setup for the related item. Check both the product-specific GL accounts and the applicable Business Unit default GL accounts. If required accounts are missing, add the appropriate accounts, save the setup, and try posting the batch again.

 

3. The Wrong Accounts Were Used

If a batch has already posted but the accounting entries went to the wrong accounts, the issue is usually related to the GL configuration that existed at the time the batch was posted.

In this scenario, correcting the product or Business Unit setup alone may not update the already-posted batch.

Recommended action: the batch may need to be unposted, the Business Unit default GL accounts and/or product-specific GL accounts corrected, and the batch reposted so the accounting entries are regenerated with the corrected account setup.

If the affected fiscal period has already been closed, your finance team may need to reopen the fiscal period before the batch can be unposted and reposted.

 

4. The Fiscal Period Is Closed

Some batch corrections may require the fiscal period to be open.

If the batch belongs to a closed fiscal period, you may not be able to unpost, repost, or correct the batch until the fiscal period is reopened.

Recommended action: before making changes, confirm which fiscal period the batch belongs to, whether that fiscal period is open or closed, whether your finance team approves reopening the period, and whether the batch has already been reconciled or reported externally.

Reopening a fiscal period should be handled carefully because it can affect financial reporting and reconciliation.

 

5. GL Account Exists in Rhythm but Not in the Financial Management System

Another common issue can occur when the GL account exists in Rhythm, but the same GL account or GL code does not exist in the connected Financial Management System.

In this scenario, Rhythm may have the correct account selected, but the external system may not recognize the account during posting, download, or transmission.

This usually points to a GL code mapping issue.

Recommended action: review the GL account in both Rhythm and the Financial Management System. Confirm the GL account exists in Rhythm, the same GL code exists in the FMS, the GL code maps to the same account in both systems, and the account is active in the FMS.

If the batch has already posted in Rhythm but did not transmit correctly to the Financial Management System, your finance team should review whether the batch needs to be corrected, retransmitted, downloaded again, or manually adjusted in the Financial Management System.

 

6. Deferred Revenue Is Not Posting or Forecasting as Expected

If your organization uses deferred revenue, batch posting and product deferral settings become especially important.

Deferrals are configured from the product’s $ / financial configuration area. The product’s deferral setup determines how revenue should be deferred and recognized when the transaction is posted.

Depending on the product configuration, Rhythm may use relative deferral dates based on the batch date. This means the batch date may influence the deferral schedule and revenue recognition period.

If deferral settings are missing, incorrect, or tied to an unexpected batch date, the batch may post but the deferred revenue schedule may not match expectations.

Recommended action: review the product’s financial configuration and confirm the correct deferred revenue account, deferral schedule, deferral date logic, and batch date are configured as expected.

If the batch has already posted with incorrect deferral settings or an unexpected batch date, your finance team may need to review whether the batch should be unposted, the product deferral setup corrected, and the batch reposted. If the fiscal period has already been closed, the period may need to be reopened before corrections can be made.


 

Recommended Month-End Close Checklist

Before closing a fiscal period, review the following items.

Batches

  • Review batches in error status.
  • Confirm applicable batches have been posted.
  • Confirm related batches have been posted together when needed.
  • Confirm bulk actions are used carefully and intentionally.
  • Confirm posted batches are in the correct fiscal period.
  • After closing, review Deferred Revenue batches if your organization uses deferred revenue.

 

Subledger Entries

  • Review posted subledger entries from Month End Close.
  • Confirm revenue, AR, deferred revenue, discounts, refunds, and write-offs are posting to the expected accounts.
  • Confirm subledger entries are visible on related invoices after posting.
  • Confirm unexpected entries are reviewed before the fiscal period is closed.

 

GL Account Setup

  • Review the applicable Business Unit.
  • Review the related product or package.
  • Confirm the required AR account is populated.
  • Confirm the appropriate revenue account is populated.
  • Confirm deferred revenue, discount, refund, or write-off accounts are populated when applicable.
  • Confirm deferral settings are configured correctly from the product’s $ / financial configuration area, if deferred revenue applies.
  • Confirm whether deferrals use fixed dates or relative deferral dates based on the batch date.

 

Financial Management System Mapping

If your organization uses QuickBooks Online or another Financial Management System:

  • Confirm the GL account exists in Rhythm.
  • Confirm the same GL code exists in the Financial Management System.
  • Confirm the GL code maps to the same account in both systems.
  • Confirm the Financial Management System account is active.
  • Confirm the account type is appropriate for the transaction.
  • Review whether the account was recently renamed, merged, inactivated, or deleted.

 

Deferrals

If your organization uses deferred revenue:

  • Review product deferral settings.
  • Confirm whether the product uses fixed deferral dates or relative deferral dates based on the batch date.
  • Confirm the batch date is correct before posting.
  • Confirm batches have posted so deferral schedules and subledger entries are generated.
  • Review the Deferral Waterfall report.
  • Drill into unexpected amounts when needed.
  • Close the applicable fiscal period when ready.
  • Review the Deferred Revenue batch after month-end close, if applicable.
  • Resolve deferral setup issues before closing the fiscal period when possible.

 

Prevention Best Practices

To reduce posting and month-end close issues, we recommend adding a finance review step before launching new items that can create transactions.

Recommended workflow:

  1. Create the product, event package, membership package, sponsorship, exhibit, or fee item.
  2. Have Finance review the accounting setup before transactions begin.
  3. Confirm the applicable Business Unit defaults are correct.
  4. Confirm product-specific GL accounts are populated when needed.
  5. Confirm deferral settings are configured correctly from the product’s $ / financial configuration area, if deferred revenue applies.
  6. Confirm whether deferrals use fixed dates or relative deferral dates based on the batch date.
  7. Confirm mapped GL accounts exist and are active in the connected Financial Management System, if applicable.
  8. Run a test transaction.
  9. Confirm the transaction appears in the expected batch.
  10. Confirm the batch can be posted successfully.
  11. Once the batch is posted, confirm the expected subledger entries are visible.
  12. Review posted subledger entries before month-end close.
  13. If using deferred revenue, review the Deferral Waterfall report.
  14. Close the fiscal period when ready.
  15. Review Deferred Revenue batches after close, if applicable.
  16. If using QuickBooks Online or another financial system, confirm the posting, download, or transmission behavior is expected.

This is especially important before opening event registration, launching new membership packages, adding sponsorship items, or selling new products.

 

When to Contact Support

Please contact Support if:

  • The error references a batch you cannot find.
  • The referenced batch is already posted but the error says it is open.
  • Posting related batches together does not resolve the issue.
  • Required accounts are populated but the system still says they are missing.
  • The batch will not post after the GL setup has been corrected.
  • The batch posted to accounts that do not match the saved configuration.
  • The GL account appears correct in Rhythm but does not transmit or process correctly in the Financial Management System.
  • You are unable to unpost or repost the batch even though the fiscal period is open.
  • The batch is posted, but the expected subledger entries do not appear.
  • Deferred revenue or deferral schedules do not match the product configuration after posting.
  • A Deferred Revenue batch was expected after month-end close but does not appear.
  • QuickBooks Online or financial system behavior does not match your expected configuration.

When contacting Support, please include:

  • The full error message
  • Batch name
  • Invoice or order number
  • Payment ID, if available
  • Related product, package, event, or Business Unit
  • GL account or GL code referenced, if available
  • Whether deferred revenue is expected
  • Whether the product uses fixed deferral dates or relative deferral dates based on the batch date
  • Whether the batch has already been posted, downloaded, transmitted, or reconciled
  • Whether subledger entries are visible on the related invoice
  • Whether the fiscal period is open or closed
  • Whether a Deferred Revenue batch was created after month-end close, if applicable

This information helps Support review the issue more efficiently.


 

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