Performing Year End Closing Procedures

Year end closing involves three major tasks.

To perform a year end close:

  1. Define ChartField value sets.

    If you plan to close to multiple retained earnings accounts, you must define the sets of values for the ChartFields that the system uses as the source for the year end closing. These can be the same sets of ChartFields that you use for interim closing or different value sets.

    Specifically, you must create ChartField value sets for the ChartFields to be closed to retained earnings. (You define ChartField value sets on the ChartField Value Set page.)

  2. Define closing rules.

    Define the rules for the year end close. Specifically, you must identify:

    • Which P/L accounts are closed to the various retained earnings accounts.

    • Whether to store P/L reversal entries.

    • Whether to have beginning balances reflect separate debits or credits, or whether to reflect the net of the debits and credits.

    • Whether to close the general ledger periods.

    • Whether to create journal entries for the year end entries.

    • Which ChartField value sets to use for the roll-forward amounts.

  3. Run the closing request.

    When you request that the year end close be processed, you identify:

    • Which ledger to close.

    • Which closing rule to use.

    • Which date to use as the closing date.

    • Which business units to close.

In addition, note the following points:

  • If you perform interim closes using an offset to retained earnings, you must perform all interim closes for all the interim periods and use the offset account defined for the interim closes as the target retained earnings for the year end close.

  • You run year end close using the Close Request page.

  • You can undo a close, if necessary, using the undo procedure.

    Note:

    Whereas you can select a year-end close option to close the GL open periods upon successful completion, if you run the undo process, it does not reopen the closed year. If you should need to post additional journals after initially closing the year, use the Open Period Update page (or Open Period Mass Update page) to open the closed year for additional entries.

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