Closing a Year

Note: Once a period is closed with a final close status, you cannot backpost to the period.

The procedure for closing a year-end is the same procedure you use to close a period. However, when you close the final period of your fiscal year, the system automatically performs several additional tasks behind the scenes to prepare you for the start of your next fiscal year. This procedure describes the process for closing a fiscal year.

Before you close the current year, you must close each period of the "last year" with a Final Close status. Closing an Accounting Period

To close year-end

Prepare, as usual, for period closing. Preparing for Period Closing
Run standard financial reports to create documentation of current balances and transactions. Running Standard Financial Reports
If you use multiple currencies, run currency reports to revalue currency and expose non-base currency amounts. Running Currency reports
Run Period Closing (GL199) to close the last period of the fiscal year. Use the following guidelines to enter this field value:

Status

Select Limited Close or Final Close as the status for each previous period of the year you are closing. When you close the last period of the current year, you must final close the last fiscal year by closing each period, in order, with a Final Close status.

Note: When you run Period Closing (GL199) for the last period of the year, General Ledger verifies that all posting is complete, updates retained earnings, clears undistributed retained earnings, and transfers year-end balances to the beginning balances for the next year.