Year-End Closing – how do you close the year?

Year-End Closing zeroes out the revenue and expense accounts, transfers the after-tax result to retained earnings, and creates next year's opening balance. The system checks the prerequisites first, and the closing can be reversed.

1. Validation checks

You can only start the closing when every condition is met:

• All 12 months closed
• Accountant reconciliation verified for all 12 months
• No draft bookings pending for the year
• Debit-Credit balance matches
• Required accounts (493, 413) exist – if missing, add them with Create missing accounts
• Year not already closed
• FX revaluation completed (Dec 31) – only if you have open foreign-currency invoices; Go to FX revaluation takes you there

2. Closing entries preview

The preview shows the balance and the closing amount for each account, and the after-tax result. If all 12 months have an accountant reconciliation, the figures come from your accountant's data; otherwise you see an estimate based on your own bookings.

What does closing do?

1. Zeroes out the revenue and expense accounts against 493 (after-tax result clearing account).
2. Transfers the result from 493 to 413 (retained earnings).
3. Creates next year's opening balance automatically.

Start with Close year [year] and confirm with Execute Closing. The system then shows how many accounts were zeroed, how many opening balances were created, and the annual result.

Can it be reversed? Yes, with Reverse closing – but only while the next year has no closed month. Reversing stornos the closing entries and deletes the opening balances created by the closing.