Financial Year End Processing

Created by Melvin Xuereb, Modified on Tue, 03 Oct 2023 at 11:05 AM by Melvin Xuereb

The Year End Process can be performed more than once. The year-end process will close off all Balance Sheet accounts, and transfer Profit and Loss accounts balances into a Profit/Loss Account.

Menu Path: Nominal → Special Functions → Year End Processing, or Company Controls → Year End Processing


The system will only allow 3 open years. 

Before Closing a Financial Year, ensure you first Process the Year End and then Close the Financial Year.

Year End Reports

  • Run the Summary Report and Detail Report to reconcile the yearly Profit/Loss amount of the company. This amount will be transferred to the Retained Earnings account as set under Company Controls.
  • Ensure that the Profit/Loss balance agrees with your financial statements.

Process Year End

Process Year End to post opening balances to the new Financial Year.

  • This process closes off all accounts for the year and transfers opening balances for Balance Sheet accounts and transfers all Profit & Loss balances to the specified Profit/Loss (Retained Earnings) Account. 
  • You must select a transaction type to be used to post the year end journal. 

Opening balances will be posted to period 0 of the following Financial Year.

The year-end process can be run more than once for the same year. Each time the system will re-update all Balance Sheet Accounts opening balances and transfer the Profit/Loss to the Retained Earnings account.

Close Financial Year

Once the audit adjustments are posted for a Financial Year, then it is time to Close the Year. Like this 

you will make sure that no postings will go back to any of the closed years.

The system allows having only 3 open years. 

Example if the Last Closed Year is 2016, then the Financial Periods that can be used are 2017 or 2018. The system will not allow the Financial Periods to be set to 2019 or above.

The Year End Process can be run several times. 
This updates the Opening Balances for the next Year.

The Close Financial Year can be run only once & there is no way to re-open that year. 
This process must only be done once the Financial Statements are complete and agree to the Audited Financial Statements.

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