Records and Postings
The process creates a number of records and postings:
• A closing period.
• An opening period (00). The system reopens the balance sheet for this GL period.
• Four postings.
Transfer Profit and Loss to Balance Sheet
The system creates a posting that transfers the profit and loss to the balance sheet. The posting is made in the last correction or normal period (if there are no correction periods) of the GL calendar year. The posting date is the last day of the GL period.
Profit and Loss Closing
The system creates a profit-and-loss closing posting that nets off each income and expense account. If the Include Sub-Accounts field is selected, the posting contains a line for each combination of profit and loss account and sub-account, or for each profit and loss account if the field is cleared. The posting date is the last day of the closing period created by the year-end closing process.
The amounts used in the posting are:
• The reverse of the open balance for the closing profit and loss account without sub-accounts
• The reverse of the open balance for the closing profit and loss account that includes sub-accounts (if Include Sub-Accounts is selected).
Balance Sheet Closing
The balance sheet closing posting sets the balance of each balance sheet account to zero. If the Include Sub-Accounts field is selected, the posting contains a line for each combination of balance sheet account and sub-account, or a line for each balance sheet account if not.
The posting date is the last day of the GL period created by the year-end closing.
The amounts in the posting are:
• The reverse of the open balance on the closing balance sheet account without sub-accounts
• The reverse of the open balance on the closing balance sheet account that includes sub-accounts (if Include Sub-Accounts is selected)
Balance Sheet Reopening
The balance sheet opening posting sets the balance of each balance sheet account to a value. It is similar to the balance sheet closing posting, with the following differences:
• Every credit amount in the closing posting becomes a debit amount in the balance sheet opening posting.
• Every debit amount in the closing posting becomes a credit amount in the balance sheet opening posting.
• The system creates the posting in GL period 00 of the new calendar year. The posting date is the first day of the GL period.
GL Periods Frozen
When you close the official layer, the year-end closing process sets the status of all GL periods for the year to Frozen, and marks the periods as reported.
Note: Period 00 of the new GL calendar year is set to Locked and not Frozen.
Additional GL Numbering Posting Example
See
Numbering Examples for an example that illustrates additional GL numbering and year-end closing.
Viewing Results
Year-End Closing View (25.21.4.2) displays layers that have been closed. You can filter the results based on various criteria. You can check the closing execution in Multi-Entity Closing View.