Close Fiscal Year

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Run Close Fiscal Year when you have completed entering all transactions for a fiscal year. This process can be run only once for a given fiscal year.

You will receive a message and the closing process will not run if you have documents with a post date within the fiscal year to be closed that are On Hold (OH) or Out of Balance (OB). You must either take the documents off hold, make the entries necessary to balance the documents or delete the documents before the closing process may be run. Sales Orders, Customer Estimates and Purchase Orders with a Hold status will not prevent the closing process.

NOTE: If you enter activity to a fiscal year that has been closed, you must also enter a journal entry in the subsequent open fiscal year(s) to record any change in account balances that occurred as a result of the activity posted to a closed fiscal year.

When you run the Close Fiscal Year process, the following journal entries will be generated:

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All income and expense type account balances will be zeroed out and the net income/loss will be posted to retained earnings. The retained earnings account and class will be determined by entries in the Retained Earnings Account Mapping screen. If there are income or expense account class combinations that are not mapped to a retained earnings account and class, the Company Setup Default Retained Earnings Account and Default Class will be used by the closing process for these accounts.

•	This journal entry will be assigned a document ID = (the fiscal year being closed + "YREND") and a post date equal to the Fiscal Year Close Date.

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A journal entry will be created to record the account balances rolling forward in the new fiscal year for all asset, liability and equity type accounts. This journal entry will be assigned a document ID = (the fiscal year being closed plus 1 day + "YRBEG") and a post date equal to the Fiscal Year Close Date plus 1 day.

The closing journal entries may not be deleted or modified.

The Fiscal Year Close Date in Company Setup is updated to reflect the last fiscal year closed.