Before you can close a financial year, it is necessary to set a number of settings correctly. For new administrations, this is automatically set correctly when creating the administration. If the settings are not correct, you need to set them yourself.
Preparing for year-end closure
For administrations created after 31-12-2016, steps 1 to 3 have already been completed and can be skipped.
Step 1: Create General ledger account
Navigate to Settings in the left-hand menu;
Choose General Ledger Accounts;
Create the following ledgers if they don't exists.
General Ledger Account 1
Number: 2000
Description: Capital
Type: Balance
Account Type: Regular account
General Ledger Account 2
Number: 9998
Description: Transfer result year-end closure
Type: Balance
Account Type: Regular account
Step 2: create new diary
Navigate to Settings in the left-hand menu;
Choose Journals;
Create the following journal if it doesn't exist:
Number: 42
Description: Year-End Closure
Type: Memorial
Contra Account: 9998 - Transfer result year-end closure
Step 3: select the journal and account in the settings
Navigate to Settings in the left-hand menu;
Choose Accounting settings;
Fill in the following settings if needed:
Journal for year-end closing: 42 - Year-End Closure
Capital account for year-end closing: 2000 - Capital
Closing the year
To close the year follow the steps below:
Navigate to Advanced in the left menu;
Choose on the right for Close year;
Click on Close year for the year you want to close;
The following popup shows the profit, loss and balance of that year;
To close the year enter your password in the popup and choose Close year;
After closing the year the profit or loss is booked on the general ledger that is set at the bookkeeping settings.