Year-end Operations
Overview
It is important to close the year to go to the next one. Execute the period-end operation followed by closing the books.
Period-End Operation
Before you do the year-end procedure, make sure you have completed all necessary tasks for the previous year, for example, 2020.
To do the year-end procedure:
- Go to Accounting and click Period-end operation.
- Click Create.
- The number field will be filled in automatically, just skip it.
- Under Operation type, select Expense allocation.
- In the Period field, enter the period you would like to close, for example, December 2024. Then click 2024 to show the 2024 months and select December 2024.
6. Under Allocation rules, click the drop-down list and select Show all.
7. Click Create to create a new allocation rule.
8. Enter a Description, for example: Close Income Statement Accounts. The Code will be filled in automatically.
9. Enter the Date from which it should be effective, for example December 2020.
10. Add the income statement accounts one by one or add them all at once. To do it, click More actions and select Fill by income statement fin. category. All the income statement accounts will appear at the bottom.
7. Click Create to create a new allocation rule.
8. Enter a Description, for example: Close Income Statement Accounts. The Code will be filled in automatically.
9. Enter the Date from which it should be effective, for example December 2020.
10. Add the income statement accounts one by one or add them all at once. To do it, click More actions and select Fill by income statement fin. category. All the income statement accounts will appear at the bottom.
11. Enter the Destination tab and click Add to select the contra account, which should be the Retained Income Account or Accumulated Income account. Its weighted average should be 100.
12. Click Save and close to complete and then select the allocation rule.
13. Post and close the document.
13. Post and close the document.
Then check the general ledgers as well as the trial balances to make sure everything is correct.
Closing Books
Here you will learn how to set a closing date for the books to disallow all the changes made after this date.
To close the books:
- Go to Quick menu > Settings.
- Select Accounting settings.
- Set a Closing date for the books to disallow further changes. Alternatively, you may choose to close the books on a module-by-module basis by selecting the Specify closing date per module checkbox.
- Choose to warn and require a password or simply warn a user when attempting to change a transaction after the closing date has passed.
