Use this batch job to transfer the year's result to an account in the balance sheet and to close the income statement accounts. This is done by creating lines in a journal, which you then can post.
The batch job processes all G/L accounts of the income statement type and creates entries that cancel out their respective balances (that is, each entry will be the sum of all the G/L entries on the account in the fiscal year). These new entries are placed in a journal, in which you must specify a balancing account, retained earnings account, in the balance sheet before posting. When the journal is posted, an entry is posted to each income statement account so that its balance becomes zero and at the same time the year's result is transferred to the balance sheet.
You must post the journal yourself; the batch job does not post the entries automatically, except when an additional reporting currency is being used. When an additional reporting currency is being used, the batch job posts entries directly to the general ledger.
The date on the lines that the batch job inserts in the journal will always be a closing date for the fiscal year. The closing date is a fictitious date between the last day of the old fiscal year and the first day of the new year. The advantage of posting on a closing date is that you maintain the correct balances for the ordinary dates of the fiscal year.
The Close Income Statement batch job can be used several times. You can post in a previous fiscal year, even after the income statement accounts have been closed, if you run the batch job again afterward.
The fiscal year must be closed before the batch job can be run.
You can define how the batch job will be executed by filling in the fields. Fill them in as follows:
Fiscal Year Ending Date: Enter the last date in the closed fiscal year. The field must be filled in. The program uses this date to determine the closing date.
Gen. Journal Template: Enter the name of the general journal template that the entries will be placed in. Click the AssistButton to the right of the field to see the existing general journal templates.
Gen. Journal Batch: Enter the name of the general journal batch that the entries will be placed in. Click the AssistButton to the right of the field to see the existing general journal batches.
Document No.: If you filled in the Gen. Journal Template field and the Gen. Journal Batch field above, the batch job automatically fills in this field with the next available number from the number series for the journal batch. You can also fill in this field manually.
Retained Earnings Acc.: Enter the account that the retained earnings entries will be placed in. Click the AssistButton to the right of the field to select the account.
Posting Description: Enter a text that will accompany the entries. The default text is Close Income Statement.
Close by Business Unit Code: Place a check mark if you want an entry to be created for each Business Unit Code.
Close by Dimensions: If you want an entry to be created for each dimension used in the G/L account, click the AssistButton to the right of the field and select the codes of the dimensions.
If you do not want to close by business units or dimensions, only one entry will be created for each account.
Click OK to start the batch job. If you do not want to run the batch job now, click Cancel to close the window.