The Fiscal Year Closing utility allows you to close each company in your General Ledger at the end of each fiscal year. Since General Ledger supports multiple years, you can make adjustments to a prior year at any time after closing and then run the Close Year utility again to update the opening balances for the next year.
Note: The right navigation panel contains the Prior Closing area, which lists all previous years in which the currently selected year has been closed. The Close Date column displays the date the year was closed. The Closed By column displays the name of the user who performed the closing. Click the View Source link to view the Year-End Closing Entries Report for that particular closing (if applicable).
Before you close the year
Make sure that all transactions for the year have been updated and any needed reports, including the year-to-date Detail Ledger report (More Information), have been run before continuing.
When you run the utility, the following actions occur:
- A new year is created if it does not yet exist.
- The account structure and chart of accounts from the current year are copied to the next year.
- Opening Balances are calculated for balance sheet accounts and properly reflected in the new year.
- Income and Expense accounts are closed to their respective closing account numbers.
- If you select the Copy Budgets option, budgets are copied to the next fiscal year.
- A Year-End Closing Entries report is displayed.
Important: If you have any income or expense accounts with invalid closing accounts, you will receive a message indicating that this must be fixed before you can close the year. A report displays indicating which accounts need to be corrected.
Important: Fiscal years with journals pending in the Unposted Journals area cannot be closed.
Important: The Close Fiscal Year utility can only be run by a user who has full rights to all of the accounts that contain activity in that year. This ensures the user does not see any ending balances on the generated report and that all accounts with activity are processed to calculate a beginning balance for the next year.
Close the fiscal year
- Select whether you want to Copy Budgets or Copy Accounts.
- Select whether you want to mark the year as closed. Selecting this option marks your current year as closed and automatically changes the default year to the new year after you click the Close Year button.
- For Print Sequence, select Account Number or Closing Account.
- Click the Close Year button to begin the closing procedure. Alternatively, click the Clear Preferences link to reset the page.
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