Closing a year

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.

What happens when I close a year?

Before you close the current year, you must close each period of the "last year" with a Final Close status. You can have only two years with an Open or Limited Close status.

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 nonbase currency amounts. Running currency reports

Note: Before you close period 12 of the current year, you must do a final close of the last fiscal year by closing each period, in order, with a Final Close status.
Run Ledger Period Closing (ML199) to close the last period of the fiscal year.
Specify this information:

Status

Select Limited Close or Final Close as the status for each previous period of the year you are closing. You can have up to two years with an Open or Limited Close status.

Note: Ledger Period Closing (ML199) verifies that all posting is complete and updates retained earnings, undistributed retained earnings, and balance sheet balances.