Ledger Period Closing (ML199)

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Before you close a period, make sure that you release all unreleased journal entries and post all released journal entries. No open transactions can exist in the period you are closing, including quick-posted journal entries and journal entries created by Ledger Currency Revaluation (ML191) and Transaction Calculation (ML195) for currency gains and losses. To make sure that you also have all the General Ledger entries for the corresponding GL period included in your period-end balances, you should also close the General Ledger period to which the Multi-Book Ledger period is mapped BEFORE you close the Multi-Book Ledger period.

If you have closing control selected for a subsystem, you must close the subsystem before you can close the general ledger accounting period. If you translate currency, you must close the period for the consolidation company before or concurrently with each company you translate amounts and units from.

You can close the period for a ledger and company or a ledger and company group. If you select a company group, all the companies in the company group must be part of the ledger.

You can close the current fiscal year or last fiscal year; you cannot close a future year. You can close any period within the year you select.

You have three closing options:

• Limited Close, the default, lets you backpost.
• Final Close does not let you backpost. All periods in a year must be closed with a Final Close option before you can close a year.
• Next Year Beg Bal is not really a closing option. It lets you to calculate beginning balances for next year at any time during the current fiscal year. This option only updates balances and does not perform any closing activities.

When a period is closed, the program performs the following actions:

• Creates automatic reversing journal entries for transactions defined as Auto Reverse = Yes.
• Marks the period closed.
• If you are closing the current period, the current period number is incremented by one.

When you close the last period of a year the following year-end processing occurs in addition to the actions listed above.

• Computes beginning balances for all following year balance sheet accounts.
• Closes income statement accounts to retained earnings.
• Generates a report of all closing transactions. Any adjusting entries on subsequent year-end closes are designated with an asterisk.
• Creates a journal entry of all closing transactions. The journal entry is normal, assigned number 1 and period 99.