Understanding Tasks for Closing a Fiscal Year
In Italy, businesses must complete these tasks at the close of the fiscal year to prepare the year-end balance sheet:
Adjust and integrate journal entries.
Close profit and loss accounts for revenues and expenses that were recorded during the year without carrying over the balance.
Calculate retained earnings.
Close balance sheet accounts on a summary account ending balance sheet and reopen the same balance sheet accounts for the next fiscal year.
During the close of the fiscal year and the preparation of the balance sheet, Italian businesses must run these control reports:
T/B by Object and Subsidiary (R7409C3) or T/B by Category Code (R70472)
G/L Registration Report (R09404)
G/L by Object and Subsidiary (R7409C1)
G/L by Category Code (R70470)
You must run the Trial Balance report in final mode to perform a final annual close as well as to prevent users from entering transactions after a year-end close. In final mode, the records included in the report are flagged in the F0911 table to indicate that they have been printed in final mode. This prevents the records from being printed in final mode again. An error message is printed on the report if any records have been printed in a previous final mode report. New transactions are visible on the report because they are not flagged with the same date as older transactions, which have the date when the report was run in final mode for the closed year. The word Final is printed on every page of a report that is run in final mode.