What happens when I close a year?

As part of the year-end closing process, you run Ledger Period Closing (ML199) for the last accounting period of the fiscal year. In addition to performing all of the period closing functions, this program does these at year-end:

• Rolls account balances so that current year balances reside in last year and last year balances reside in previous year.

• Calculates beginning balances for the new year for all balance sheet accounts.

• Creates consolidation records for the new year.

• Moves current year period ending dates to last year, next year period ending dates to current year, and last year ending dates off the calendar. Creates period ending date for the new next year.

• Calculates period ending dates for the next year.

• Creates a closing entry with a status of History in period 99 that transfers the balance in the undistributed retained earnings account to retained earnings.

  You can keep history for an unlimited number of years as long as you have space available. Deleting ledger company history

When current year balances become last year balances, the last year balances are still available by using the previous year data dictionary names in the Report Writer application.

Example

This diagram demonstrates what happens when you close the current year (2000). Last Year (1999) falls of the calendar and amounts can still be retrieved using previous year data dictionary names. Current year (2000) becomes Last Year, and the Next Year (2001) becomes Current Year. In addition, a new Next Year is created for the year 2002.