Project closure refers to a set of tasks that are required to formally end the project. There are two kinds of projects that you need to close formally:
• Completed projects - A project that has met its completion criteria falls into this category.
• Terminated projects - A project that was terminated before its completion falls into this category. A project can be terminated at various stages for various reasons. Some examples are:
o The project management plan is not approved for whatever reason.
o The project has been executing, but you have run out of resources, and no more resources are available.
o The project has been cancelled because it was going nowhere.
o The project has been indefinitely postponed because there is not a large enough market for the product it would produce.
A project, in general, may have in-house activities i.e., project activities being performed within the performing organization and procurement activities. Accordingly, there are two aspects of project closure:
• Close the in-house activities of the project.
• Close the procurement part of the project.
Project closure includes the following activities:
• Activities to verify that all deliverables have been provided and accepted
• Activities to confirm that all the project requirements, including stakeholder requirements, have been met
• Activities to verify that the completion or exit criteria have been met
• Activities to ensure that the project product is transferred to the right individual or group
• Activities to review the project for lessons learned and archive the project records
You need to obtain final closure, such as acceptance signoffs, contract closure, or receipts for both the in-house part and the procurement part of the project and from both internal and external vendors and customers. You perform this task by using standard accounting practices and following the relevant organizational and legal procedures, such as SOX compliance
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