Can managers override accounting codes after month-end close?
Short answer
Managers usually cannot override accounting codes after month-end close to preserve data integrity. Any post-close adjustments must go through formal journal entries or finance approvals.
Why are overrides restricted after the month-end
Overrides are restricted after month-end to protect the accuracy and integrity of finalized financial records. Once books are closed, any changes can affect reconciliations, reporting accuracy, and audit readiness. These restrictions ensure that financial data remains consistent across all reports and systems.
The main reasons overrides are limited after close include:
- Data integrity: Locking prevents accidental edits that could alter validated totals or disrupt reconciled balances.
- Audit compliance: Post-close controls maintain a clear record of approved figures, supporting external and internal audits.
- Reporting consistency: Finalized numbers stay aligned across departments, financial statements, and ERP systems.
- Fraud prevention: Restricted access limits opportunities for unauthorized changes to closed data.
- Workflow stability: Month-end processes, such as accruals, tax filings, and performance reports, depend on fixed data to remain accurate.
When post-close overrides are permitted
Post-close overrides are permitted only under specific circumstances where financial accuracy takes precedence over the need to maintain fully locked books. Each override must pass through a controlled workflow that documents who made the change, when it occurred, and why it was required.
| Situation | Purpose of the override | Control in place |
|---|---|---|
| Error correction | Fixes a misclassified expense or incorrect GL mapping identified after close | Requires documented reason and management approval |
| Audit adjustments | Reflects external or internal audit findings that affect prior-period reporting | Logged with timestamp and audit trail visibility |
| Compliance reclassifications | Aligns financials with updated tax or regulatory requirements | Triggered through an approved accounting workflow |
| Intercompany adjustments | Resolves cross-entity discrepancies in transfer pricing or allocations | Processed through authorized finance roles only |
| System reconciliation fixes | Corrects syncing or integration errors between ERP and spend platforms | Verified by accounting before resyncing data |