Close a Fiscal Year

To evaluate profit and loss, a fiscal year closing report is provided at the end of each fiscal year.

Fiscal year closing involves the following steps:

  • Closing the fiscal year using the Accounting Period option.
  • Generating a year-end closing entry using the Close Income Statement option.
  • Posting the year-end closing entry.

To close a fiscal year

  1. Choose the Search for Page or Report icon, enter Accounting Periods, and then choose the related link.

  2. To close an accounting period, select the accounting period, and then choose the Close Year action.

  3. To confirm that you want to close the fiscal year, choose the Yes button.

    Important

    After the fiscal year is closed it cannot be opened again, and the period in the fiscal year cannot be changed.

To generate a year-end closing entry using the Close Income Statement option

  1. Choose the Search for Page or Report icon, enter Close Income Statement, and then choose the related link.

  2. On the Options tab, fill in the fields as described in the following table.

    Field Description
    Fiscal Year Ending Date The ending date for the fiscal year.
    Gen. Journal Template The name of the general journal template in which to place the entries.
    Gen. Journal Batch The name of the general journal batch in which to place the entries.
    Balancing Account No. Select the relevant account number.
    Document No. The batch job automatically populates this field with the next available number for the journal batch if you fill in the Gen. Journal Template and Gen. Journal Batch fields. You can also enter a number into this field manually.
    Net Profit Account No. Select the unique net profit account number.
    Net Loss Account No. Select the unique net loss account number.
    Posting Description Enter a description. The default text is Close Income Statement.
    Business Unit Code Select this check box if you require an entry for each business unit code.
    Dimensions Optionally, select the field to select the dimension codes if you require an entry for each dimension used in the general ledger account.
    Inventory Period Closed This field indicates that the inventory periods with ending dates greater than or equal to the last date of the accounting period are closed.
  3. Choose the OK button to create the journal entries.

To post the year-end closing entry

  1. Choose the Search for Page or Report icon, enter General Journals, and then choose the related link.
  2. In the Batch field, specify the batch that contains the closing entries.
  3. Add the relevant entries to the journal lines.
  4. To post the journal, choose the Post action.

An entry is posted to each income statement account so that it has a zero balance. The year-end result is transferred to the balance sheet.

See Also

Closing Years and Periods
Italy Local Functionality