General Ledger Transactions > Year-End Transactions > Year-End Closing Checks
  
Year-End Closing Checks
When you run the year-end closing process for a layer, the system performs a number of checks.
You can create year-end closing postings only when the following conditions are met:
• Each GL period for the specified GL calendar year and entity has been closed to transactions from modules other than GL.
• For a management layer being closed before the official layer is closed, the periods must be set to at least Reported status for the entire year. When you close the management layer, the periods remain Reported.
• For a management layer being closed after the official layer has been closed, all periods must have a Frozen status.
Note: GL Periods are frozen when the official layer is closed.
• The GL calendar year has not been closed.
• The system history tables are up to date, and the History daemon has no records to process.
• The trial balance sums to zero. See Financial Statements.
• The profit and loss balance has already been set to zero, in cases where you choose to close the GL calendar year manually.
• There is no outstanding balance on the Auto Balance system account for that year. This check is performed on the official and management layers only. Postings to the transient layer for the Auto Balance account do not affect the Year End Closing. See Journal Entry Auto Balancing.
• You have the appropriate role access to create postings against the year-end closing daybooks.
Note: You can set up permissions for Year-End Closing daybooks in Daybook Create so that only certain roles can close specific layers. In this scenario, the system verifies that the current user has the role required to make postings to a Year-End Closing daybook.
If any of the checks fail when closing the layer, the system displays an error message and stops the year-end closing process. If all the checks are passed with a warning, the system displays a warning message but allows the year to be closed. If all checks pass, the system displays a message indicating you can register the year-end closing.
Closing periods are created when the first layer is closed. Therefore, when a second layer—management or official—is created, the periods already exist and are not duplicated.
To close a management layer manually, journal entries must be made using Year-End Closing daybooks and must be posted to Correction Periods and Year-End Closing periods. It is only possible to make a Year-End Closing posting to a normal accounting period when there is no correction period and the period concerned is the last normal accounting period for the year.