-- Close year is located in Accounting > Close Year
-- Close Year makes a hidden journal entry dated 1/1 of the next year.
-- Close Year zero’s out all income and expense accounts and rolls them into your Retained Earnings account(s).
o Your default account is setup in Admin > Settings > GL accounts > Retained Earnings
o You may change that GL account during Close Year. You can even choose multiple accounts with their percentages.
-- The resulting Journal Entry is visible under Accounting > Journal Entries (remember, it is dated 1/1) however it will not display on ANY financial reports. You can also drill down to see the detail of the entry.
-- To perform Close Year, January of the next year must be open so the journal entry can be created.
-- The recommended sequence of events would be:
1. Change Current Period into January
2. Close Period for December (+ any unclosed 2014 periods). This step is not required, but is highly recommended.
3. Close Year before you print January financial statements
-- Later in the new year, if you make a 2014 journal entry that impacts income or expenses, run Close Year again. (Note: If you ever see a Balance Sheet that is out of balance, it is probably because someone made a Prior Year entry, but did not perform Close Year.)
-- When you perform Close Year (shown below), it will show you if any of the accounting periods are still open (but it won’t stop you, that is just a warning).
-- After you complete Close Year, when you go return to the screen and select that same year it will display the user and date that Close Year was last performed.
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Permissions and Settings
To [action] you need permission to [name of permission]. To do this go to Admin > User > (Select User) > Change Permissions > [Settings Category] > [Name of Setting]
In order to [action], you need to [Description of Setting]. Click here to read how to set that up.