This procedure is used to automatically record the year-end profit or loss. The outcome closes the income statement against the balance sheet at the end of the year.
It can also be used to create a proposal for recording the year-end result without updating the general ledger.
Start ‘General Ledger. Calculate Profit/Loss’ (GLS995/E).
Enter accounting year and select whether to update the general ledger.
If you wish to close the profit and loss accounts at year-end, select the ‘Year-end, profit and loss calculation’ check box (see Example 1).
If you wish to close the balance accounts at year-end and have them reopened automatically, select the ‘Close/open balance sheet accounts’ check box (see Example 2).
For the profit and loss calculation, select calculation method:
Enter the balance account to which the year-end profits are posted as well as the profit and loss account used for posting the year’s profit.
Enter a voucher text. Press Enter to confirm.
All profit and loss accounts are closed and a separate balance account is updated with corresponding account entries on the last day of the fiscal year.
|Profit/Loss (Balance account)||1,200|
The balance accounts are closed and corresponding account entries are created in the year-end period. (If you have defined twelve periods per year, this period will be the thirteenth.) Account entries for reopening the accounts are created on the first accounting date of the following fiscal year as well.
To avoid an unbalanced voucher, this alternative requires that all profit and loss accounts are closed. You close these accounts by selecting the ‘Profit/loss calculation’ check box on the same panel.
Example (including balance accounts only):
After closing :
|‘Profit and Loss’ (This is the balance account updated when closing the Profit/Loss accounts.)||1,200|