Period end closing doubt

[Former Member]

Hi..,

I have one doubt. Now i am closing my period how the balance is carry forward to next period. i am using

Administration->utilities->Period closing

Here i am giving Retained earning a/c & Period end closing account after execution system is showing some line items

in this screen have only Revenue& expenses a/cs only wt may be the reason?

can any help me.

regards

venila

[preety_goel · Accepted solution]

Hi Venilla,

Please Visit following link for tips for year end closing:

https://websmp210.sap-ag.de/~form/sapnet?_FRAME=CONTAINER&_HIER_KEY=701100035871000437965&_OBJECT=01...;

An expert session was also conducted please search the topic

on the following link providing keywords in search field.

https://psd.sap-ag.de/PEC/calendar/

Regards,

Preety Goel

SAP Business One Forums Team

[Former Member]

Hi Venila

Let's assume your year ends on 31 December 2007. The system will create an entry against each income and expense account at 31 Dec and post to the profit & loss account (also Income Statement Account). At 1 January 2008 it will post from profit & loss account to the Retained Income account in the Balance Sheet section (usually under Capital).

The 2 types of entries listed above are both posted as BC in the journal entry.

Kind regards

Peter Juby

[former_member186095]

HI Venila,

Period end closing is performed when you perform year end closing. SAP B1 is not supported for monthly closing. I've got several issue from customer after they performed period end closing. The issue is the profit period in balance sheet is not as same as profit period in the P&L report after period end closing is done.

The definition of Period end closing is :

Period-End Closing
To carry forward the balances of the P&L accounts to the corresponding account in the balance sheet (or several different balance sheets), you can use the PERIOD-END CLOSING function. You can store the result initially as a report and then post them at a later stage.
If you make postings after the balances carried forward have been entered, you need to restart the period-end closing routine to include these subsequent postings.
Administration u2192 Utilities u2192 Period-End Closing
When the balance is carried forward, the balances of the P&L accounts are posted to a clearing account on the day of carrying forward (the last day of the period). Therefore, the balances are reduced to zero. On the first day of the subsequent period, the clearing account is posted to the corresponding balance carried forward to the account in the balance sheet.
Before the balance is carried forward, check the accounts in the P&L appendix, and, if necessary, do not carry these forward (for example, if they are statistic accounts).

you could use pdf file tips for year end closing V20_EN as a guidance to perform year end closing.

Rgds,