Closing an Accounting Period
After you post all the journal entries for a period, you must close the accounting period for each general ledger company or company group. The period closing process automatically performs several important steps that prepare you for the next period. Use this procedure to close an accounting period.
To close an accounting period
- Run Period Closing (GL199).
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Use the following guidelines to enter field values:
- Fiscal Year and Period
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Select the period and fiscal year you want to close. If left blank, the current period and year defaults. If you opened a previous period for backposting, make sure you select that period here instead of accepting the default.
The following rules apply to closing periods:
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You must close periods consecutively
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You cannot skip a period when closing
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You cannot close a future period
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There cannot be unprocessed, unreleased, released, or quick-posted journal entries for the period you are closing
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- Closing Option
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Select a period closing option. The following options are available:
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Select Limited Close to be able to backpost to a period after closing.
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Select Next Year Beg Bal to calculate beginning balances for next year at any time during the current fiscal year. This option only updates balances in the next year and does not perform any closing activities.
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Select Final Close if you do not want to be able to backpost to a period after closing. You can select this option only once each period. You cannot close the current year until the last year is at Final Close status.
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- Final Close Last Year:
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Allows users to final close all periods in the last year for a company or company group. If a period in last year is not Limited Closed, then only the periods prior to that period will be Final Closed. If a period is Final Closed the program will move on to the next period.