The Close Month task in Contracts does the following:

• Advances the Current Month in the Contracts Settings
• When you close the month in the Contracts application, the Next month totals on the Billed Totals, Adjustment Totals and Retainage Totals & Miscellaneous tabs of the contract and contract item clear and those amounts move to the Month-to-date totals.
• If the new month is the first month of a new year, the Next year totals clear and move to the Year-to-date totals.
• Moves the totals in the next month total fields to the month-to-date fields on the contract and contract item records.

• If the new month is the first month of the new year, it moves the totals in the next year total fields to the year-to-date total fields on the contract and contract item records.