Open Year-end
Revenue and expense accounts start each year from zero. The close moves the year's net result, profit or loss, into Retained earnings under equity.
In the side menu choose Year-end, then press Review & close beside the year.
Work through the checklist
The list shows what is still open: draft journals and invoices, unmatched bank lines, unreconciled bank accounts, items with negative stock, the VAT difference and foreign currency balances. Press Open beside an item to go to it.
None of these blocks the close, but each is easier to fix now than after. Below them you see the Net income (loss), the account it rolls into and how many accounts will be zeroed.
Close the year
Press Close the year and confirm. One journal zeroes the revenue and expense accounts, and the year's periods are locked so nothing can be posted into them.
You see the journal number beside the year. That year's income statement still shows what really happened; the closing journal does not disturb it.
| Account | Debit | Credit |
|---|---|---|
| Revenue accounts | 1,000,000.00 | |
| Expense accounts | 800,000.00 | |
| Retained earnings | 200,000.00 |