Year End Closing Journal Entries
Use this form to generate fiscal year end journal transactions to close out all revenue and expense accounts into an income summary account. The generated transactions may be further modified and posted in the same manner as other journal entries.
A journal transaction is also created which shows the net income (the sum of all the year-end transactions). The transactions are generated to the journal only, and not posted to the ledger. The transactions must be posted to complete the year end procedures.
You perform the Year End Closing function at the end of the company's fiscal year, but it can be performed at anytime by specifying the fiscal start and end date without regard to the defined accounting periods. The fiscal year and subsequent periods are defined in the Accounting Periods form.
Before running this function, verify that all outstanding journal transactions for the fiscal year are entered and posted to the ledger. This function generates journal transactions which set all revenue and expense account balances to zero. If all journal transactions are not posted to the ledger, the transactions created may not actually set all revenue and expense account balances to zero.
Only one user at a time can have the ledger open. Therefore, if someone is running a financial report or performing year end closing, this function cannot be performed until the original process is complete.