In simple words

At month end the books must show everything that happened in the month, even where no invoice or bank entry exists yet. A short list of recurring journals does most of this. This playbook lists each one, with:

  • the debit and credit
  • when to post it, as a working day (WD) after month end. WD1 is the first working day after month end
  • the evidence to attach
  • what the reviewer should check

Plan the dates with the close calendar tool. Log every manual entry in the journal entry register (W).

Rules for every manual journal

  1. One preparer, a different approver. Nobody approves their own entry.
  2. Support attached to the entry or saved in the close folder under its document number.
  3. Narration that stands alone: what, which period, why, and the basis. For example: "Accrual Sep-26 O&M contractor invoice not received, per measurement sheet MS-114, auto-reverse 01-Oct-26."
  4. Right period and document type. Accruals that reverse are posted as reversing entries (for example FBS1 in SAP), not by hand next month.
  5. No posting to a closed period without the controller's written approval.
  6. Sensitive accounts (suspense, revenue, equity, related parties, provisions) get a second look.

The playbook

# Journal Debit Credit When Evidence Reviewer checks
1 Reverse last month's accruals Accrued liabilities Expense WD1 (automatic) Reversal report Every reversing entry actually reversed
2 Expense accruals (goods or services received, no invoice) Expense Accrued liabilities WD1 GRN, measurement sheet, contract, GR/IR report Not already invoiced; no double count with GR/IR
3 Prepaid amortisation Expense Prepaid expenses WD1 Prepaid schedule (A) Closing prepaid agrees to the schedule
4 Depreciation on PPE Depreciation Accumulated depreciation WD1 Depreciation run, asset register (C) Additions and disposals in the month included; useful lives per policy
5 Amortisation of the toll collection right Amortisation Accumulated amortisation WD1 Amortisation schedule and traffic or revenue data Method matches the policy (see note 1)
6 Interest on borrowings at the effective interest rate Finance costs Interest accrued / borrowings WD2 EIR schedule, sanction letters Upfront fees spread through EIR, not expensed at once (Ind AS 109)
7 Major maintenance (resurfacing) provision Operating expense, and finance cost for the unwinding Provision WD2 Engineer's estimate, discounting working Discount rate and timing reviewed; see note 2
8 Lease accounting Depreciation on right-of-use asset; interest on lease liability Accumulated depreciation; lease liability WD2 Lease schedule (D) or the lease calculator Rent payments reduce the liability, not expense
9 Toll revenue cut-off Receivable from the acquiring bank or settlement account Toll revenue WD1 Toll management system, FASTag settlement reports Traffic up to midnight of month end included; exempt and pass trips handled per the concession
10 Expected credit loss on receivables Impairment loss Loss allowance WD3 (often quarterly) Ageing, ECL model (E) Simplified approach and loss rates documented
11 Foreign currency revaluation of monetary items FX loss, or monetary item Monetary item, or FX gain WD2 Closing rates, revaluation run Only monetary items revalued (Ind AS 21)
12 Payroll and employee benefit provisions Employee benefit expense Bonus, leave and gratuity provisions WD2 Payroll register, actuarial estimate Year-end actuarial gains and losses on defined benefit plans go to OCI (Ind AS 19)
13 GST input credit tie-out Expense or asset (for ineligible or blocked credit) GST input credit WD3 GSTR-2B reconciliation (tool) Credit claimed only where conditions are met
14 GST output and set-off Output GST payable Input credit / cash ledger WD3 Return working, ledger Ledger agrees to the return to be filed
15 TDS payable tie-out (no new entry; reclassification if needed) TDS payable WD3 TDS report, challans Every deduction in the ledger deposited by its due date; TDS tracker (S)
16 Intercompany charges and interest Receivable from group company Income WD3 Agreements, confirmations Both sides agree; intercompany reconciliation (V)
17 Bank charges and interest from the statement Bank charges / bank Bank / interest income WD2 Bank statement, bank reconciliation (I) Reconciliation has no old unexplained items
18 Deferred tax Deferred tax expense, or DTA DTL, or deferred tax income WD5 (often quarterly) Deferred tax worksheet Items through OCI are taken to OCI
19 Provisions and contingencies review Expense Provision WD4 Legal and claims tracker Ind AS 37 test: present obligation, probable outflow, reliable estimate
20 Current and non-current reclassification Non-current borrowings Current maturities of long-term borrowings WD5 (quarter and year end) Repayment schedules Instalments due within 12 months shown as current

Note 1, toll road amortisation. Schedule II to the Companies Act, 2013 allows toll road intangible assets created under BOT, BOOT or similar PPP routes to be amortised so that the whole cost is written off over the concession period, including by a revenue-based method. Under Ind AS 38 a revenue-based method is generally not allowed, but Ind AS 101 lets a first-time adopter keep its previous method for toll road intangibles recognised in the financial statements for the period just before the first Ind AS financial statements. Check which applies to each asset.

Note 2, service concessions. Road concessions are usually accounted for under Appendix D to Ind AS 115 (service concession arrangements). Contractual obligations to resurface or restore the road are provided for under Ind AS 37 as the obligation builds up, and the provision is discounted.

Before you sign off the close

  • Trial balance balances, and the suspense account is nil or explained.
  • Every balance sheet account has a reconciliation (tracker X).
  • Flux review: explain movements above your threshold against last month and the budget (budget vs actual J).
  • Every manual journal has support and an approver who is not the preparer.
  • Posting period closed in the system (OB52 in SAP).

This playbook is a general guide. Your accounting policies, the concession agreement and the current law decide the actual entries.

For computation and reconciliation assistance only; not a substitute for formal statutory audit or legal tax advice. Rules, system versions and your own policies differ: check them before you rely on this guide.

Last reviewed 25 October 2026. Spotted an error? Tell us and we will correct it.