Interpreting the Results of Interim Closing

Interim closing sums all transactions that affect the selected P/L accounts and closes them to retained earnings. The system creates journal entries to update ledgers.

The system also creates offsetting entries. You can create offsets with alternative ChartFields. If you offset to an account other than the source transaction, the audit trail remains intact. If the offset account is the same as the source account, you close the account and no audit trail exists for the closed accounts.

Create Offset Transaction

This table illustrates creating offsets with alternative ChartFields:

P/L Balance 410000	Retained Earnings Offset 360101	Retained Earnings 360100
100 CREDIT	100 DEBIT	100 CREDIT

Note:

When you use an offset for interim close, it must be the target for the subsequent year end close.

Close Account

This table illustrates creating offsets with the same account as the source document by selecting the Retain all CF Value for Offset (retain all ChartField value for offset ) option on the Net Income/Retained Earnings page:

P/L Balance 410000	Retained Earnings Offset 360101	Retained Earnings 360100
100 CREDIT 100 DEBIT		100 CREDIT