Operational Workflows & State Machines

The Accounting & FMS domain defines explicit workflows and state machines to ensure that every financial document moves through a controlled, auditable lifecycle.

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1. Journal Entry Lifecycle

flowchart LR
    A[Draft Preparation] --> B{Balance Validation}
    B -->|Invalid| A
    B -->|Valid| C[Maker-Checker Approval]
    C -->|Rejected| A
    C -->|Approved| D[Posting]
    D --> E[General Ledger Lock]

Stage	Business Responsibility
Draft Preparation	A user creates a journal voucher and attaches debit/credit lines.
Balance Validation	The system enforces the zero-sum rule before allowing progression.
Maker-Checker Approval	A second authorized user reviews and approves the voucher.
Posting	The voucher is committed to the GL and account balances are updated.
GL Lock	Posted entries become immutable and traceable in reporting.

Maker-Checker Separation

The approver of a journal voucher must be a different actor than its creator. This separation of duties prevents single-actor fraud and satisfies common internal control frameworks.

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2. Journal Entry State Transitions

Current State	Trigger / Event	Next State	Business Validation Rule
Draft	Submit for review	Pending Approval	Voucher must balance; period must be open.
Pending Approval	Approver rejects	Rejected	Rejection reason is mandatory.
Pending Approval	Approver approves	Approved	Approver is not the voucher creator.
Approved	Post command issued	Posted	Period is open; no pending reversals exist.
Posted	Reverse command issued	Reversed	A reversing journal voucher is created and posted.

State Invariants

• A voucher in Rejected state can be edited and resubmitted.
• A voucher in Approved state cannot be edited; it must either be posted or sent back to draft by an authorized officer.
• A voucher in Posted state can only transition to Reversed through a formal reversal document.

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3. Fiscal Year-End Close

flowchart TB
    A[Period Reconciliation] --> B[Income Summary Transfer]
    B --> C[Retained Earnings Transfer]
    C --> D[Nominal Account Zeroing]
    D --> E[Opening Balance Roll-forward]
    E --> F[Period Lock]

Step	Description
Period Reconciliation	All sub-ledgers, bank statements, and control accounts are reconciled.
Income Summary Transfer	Revenue and expense accounts are closed to a temporary Income Summary account.
Retained Earnings Transfer	The net result is transferred to Retained Earnings within Equity.
Nominal Account Zeroing	Revenue and expense accounts begin the new period with zero balance.
Opening Balance Roll-forward	Asset, liability, and equity balances are carried forward as opening balances.
Period Lock	The closed period is locked to prevent retroactive changes.

Close Preconditions

Before a fiscal year can be closed, the system verifies:

• All journal vouchers for the period are posted.
• All sub-ledgers reconcile with the General Ledger.
• No prior period remains open.
• All required audit adjustments have been recorded.