Interim Versus Year End Closings

Although most companies must close profit and loss accounts to retained earnings only once a year, some companies may close as often as once a day. General Ledger enables you to run closing as frequently as need through interim (net income) closings. The system also provides year end closing on the Account and Alternate Account (statutory) ChartFields.

Interim and year end closings are similar in that they both close profit and loss (P/L) accounts to retained earnings. However, there are differences in the capabilities of each type of closing. This section identifies the differences and similarities of the two types of closings.

This table describes the differences between interim and year end closing:

Interim Close	Year End Close
Enables you to close periods within a fiscal year (for example, daily or monthly) on the Account ChartField. Because the intent of the interim close is to close P/L accounts, it is required that the Account ChartField be included in the CFV set.	Enables year end close. Closes the year that you specify on the Account ChartField, the Alternate Account ChartField, or both.
Define only one closing rule within a closing process group for processing.	Enables you to define more than one closing rule within a closing process group for processing year end close. This allows you to create closing accounting entries to accounts besides the customary retained earnings accounts.
Enables you to select some or all P/L accounts to be closed. Note: Because the intent of the interim close is to close P/L accounts, it is required that the Account ChartField be included in the ChartField value set (CFS).	Unless the Set Default Retained Earnings option is set to Off, all P/L accounts are closed. Note: This option is not available when the Balance Sheet Indictor option is selected.
Does not carry forward closing balances.	Carries forward closing balances to beginning balances for balance sheet accounts. If closing is not performed for all book codes and balance sheets, closing balances carried forward to beginning balances are balanced for only the set of accounts defined by the closed book codes or the closed balance sheets.
Creates journal entries that you post during or after the closing process.	Directly updates the ledger. Optionally, creates journal entries for those companies that require journal entries for any transaction that affects ledger balances. Note: When the Application Engine process (GL_YC) is used to close ledgers, this option is ignored, regardless of your selection.
Creates optional offsetting entries into alternative ChartField values.	Creates offsetting entries into source P/L ChartField values in the ledger. If using interim close with offsetting entries, then you must select the offset to the retained earnings account as the target retained earnings for the year end close.
Closes selected adjustment periods.	Automatically closes all adjustment periods for the year.
Includes Account in P/L ChartFields.	Includes Account or Alternate Account in P/L ChartFields.