How does Workday handle financial period closures?

Workday ensures the integrity of financial reporting by implementing controls during the financial period closure process. One of the key functionalities is preventing the closure of a period if there are unapproved transactions. This approach is crucial because it ensures that all financial activities, including expenses and revenues, are fully reviewed and approved before finalizing the period's financial statements. By maintaining this control, organizations can avoid discrepancies and inaccuracies that could arise from unapproved transactions, thus supporting more reliable and accurate financial reporting.

This procedure is particularly important for compliance and auditing purposes, as it guarantees that all financial records reflect only verified and authorized entries. Therefore, financial managers can be confident that the closed period truly represents the company's financial status without any pending or unacknowledged items that could later affect the financial outcome or require adjustments.