Closing the Fiscal Year
Year-end closing transfers the year's result to equity and prepares income accounts for the next year.
Check readiness
Close periods, post or cancel pending entries, and lock opening balances.
- Any open period blocks closing.
- Any unposted entry blocks closing.
Execute closing
Select income-summary and retained-earnings accounts, then let the system create closing entries as one operation.
- Revenue and expenses close into income summary.
- Net income or loss transfers to retained earnings.
Verify and reopen
Review entries and zeroed income accounts, and reopen the year only in exceptional cases.
- A closed year cannot be closed again.
- Reopening reverses all closing entries.
