Year end closing

[Former Member]

Should the financials be closed off every year (or even quarter) and if so why? What are the benefits of doing so?

[former_member206488 · Accepted solution]

Hi,

You can check two things in this case :

1) Whether the Period which the customer closed , all the Posting periods were taken into account (if these are months then all 12) ?

2) Whether any new enteries have been entered after doing the period End Closing?

[Former Member · Accepted solution]

Thankyou also

[Former Member]

Hello,

The Year End Closing function is used to close the books for the current accounting year and reopen them for the new accounting year. (The ``accounting year'' can be either a calendar year or a fiscal year.)

The closing process will automatically complete the following steps:

1) Move the Current Year Opening Balances to the Prior Year Opening Balance for each balance sheet account.

2) Create new Opening Balances for the new year for all the balance sheet accounts.

3) Automatically calculate the current year's profit or loss and post it to the profit/loss account you select.

4) Move all Net Transactions for all accounts in the general ledger from the Current Year column to the Prior Year column.

5) Reset the Current Year Net Transaction column for each general ledger account to zero.

6) Save the current year's journals in an inactive status.

7) Create and open new, empty journals for the new year.

Year End Closing is a principle of good Accounting Practice.

Please refer also on documentation of Year End Closing in SAP Portal.

Kind Regards,

Raghu N

SAP Business One Forums Team

[Former Member]

Thankyou

[Former Member]

A question on Year End Closing - I have a journal entry that automatically pops up to clear the balances on the P&L - Do I use the current year end i.e. 12/31/2009 or 1/1/2010 for the posting and due date?

Lora Miller