Closing the Year for General Ledger

On the Year End Closing Journal Entries form, select the general journal to close.
In the Income Summary Account field, select the Retained Earnings account for the year end closing transaction. The account's type must be set up in the chart of accounts as Owner's Equity.
(Optional) Change the Fiscal Year Start Date and Fiscal Year End Date fields.
To have the system first delete all journal entries for this journal before generating the year-end transactions, select Delete Current Journal Entries.

This refers to the existing entries in the General Journal only. Do not change any of the references generated by the system on the entries in the General Journal. If this check box is selected, all journal transactions along with any associated text are deleted when the transactions are generated, prior to creating the closing transactions.
To have the system clear the unit code balances in the revenue and expense accounts as well, select Unit Code Detail.

Clearing this check box leaves the balances in the unit codes, and carries them forward.
Click Process.

Note:

This procedure creates debit and credit entries to close out all revenue and expense accounts for the date range specified. These entries are placed in the General Journal. You must then post the General Journal to the General Ledger.
This procedure should be run only after all entries made to the fiscal year are posted.
To close the journal, it must be a writable journal.
You can close fiscal years an unlimited number of times. If you have closed the fiscal year and need to enter transactions for that year, you can post the transactions and then run the year-end close again.