How to: Set Up and Close Income Statement Balances
You can use income statement balancing accounts to balance and track several accounts at the same time. The Close Income Statement batch job transfers income statement accounts to an account in the balance sheet, and closes the income statement accounts. When the Close Income Statement batch job is run, the entries are automatically posted.
|The fiscal year must be closed before the batch job can run.|
To set up the income statement balance account
In the Search box, enter Chart of Accounts, and then choose the related link.
Select an existing general ledger account. On the Home tab, choose Edit to open the G/L Account Card window.
Expand the General FastTab.
In the Income Stmt. Bal. Acc. field, select the adjustment account for the auxiliary commercial account.
Note During adjustment, balances will be expensed or credited to this account.
Enter information into the required fields, and then choose the OK button.
To close income statement balances
In the Search box, enter Close Income Statement, and then choose the related link.
In the Options FastTab, fill in the fields as described in the following table.
Fiscal Year Ending Date
Select the date of the closed fiscal year.
Gen. Journal Template
Select the required general journal template.
Gen. Journal Batch
Select the required general journal batch.
Enter the document number.
Retained Earnings Acc.
Select the account for the retained earnings entries.
Enter the required description.
In the Close by section, fill in the fields as described in the following table.
Business Unit Code
Select to create an entry for each business code.
Select to create an entry for each general ledger dimension.
Inventory Period Closed
Select to indicate that the inventory period with ending dates equal to or greater than the last date of the accounting period is closed.
Choose the OK button.