Separate Debit and Credit Options for Opening and Closing Periods
On the Year End Close Options page, there are two options that you can use for year end close only when your database is configured for separate debit and credit:
-
Initialize DR/CR with Net Bal (initialize debit/credit with net balance): Select to populate account amounts in the opening period (0) for the year being opened with the net debit/credit balance from the year being closed.
-
Close DR/CR with Net Balance: Select to populate account amounts in the closing period 999 for the year being closed with the net debit/credit balance.
If you do not select these options, the debit balances and credit balances are treated separately—they are not netted for period 999 and period 0.
SeeUsing Separate Debit and Credit .
Setup for Opening and Closing Period Examples
In the following examples, the headings are:
-
Total is the amount stored in POSTED_TOTAL_AMT.
-
DR is the amount stored in POSTED_TOTAL_DR.
-
CR is the amount stored in POSTED_TOTAL_CR.
Assume the following balances at the beginning of year 20X6, which are rolled forward from the closing of year 20X5:
| Period | Account | Total | DR | CR |
|---|---|---|---|---|
|
0 |
100000 |
30000 |
40000 |
−10000 |
|
0 |
210000 |
−20000 |
10000 |
−30000 |
|
0 |
360000 |
−10000 |
5000 |
−15000 |
Assume the following transactions occurred during the year 20X5:
| Period | Account | Total | DR | CR |
|---|---|---|---|---|
|
7 |
403000 |
−80000 |
3000 |
−83000 |
|
7 |
500000 |
65000 |
71000 |
−6000 |
|
7 |
100000 |
15000 |
17000 |
−2000 |
Period 999 Amounts if the Close DR/CR with Net Balance Option is Checked
Assume the equity account is 360000.
The close uses the total net amount. If the net amount is positive, it is recognized by the system as a debit and a negative offset amount (credit) is generated for period 999.
If the net amount is negative it is recognized by the system as a credit and a positive offset amount (debit) is generated for period 999.
The closing entries generated for period 999 for year 20X5 are net amounts:
| Period | Account | Total | DR | CR |
|---|---|---|---|---|
|
999 |
403000 |
80000 |
80000 |
0 |
|
999 |
500000 |
−65000 |
0 |
−65000 |
|
999 |
360000 |
−15000 |
0 |
−15000 |
Period 999 Amounts If the Close DR/CR with Net Balance Option is Not Checked
If the Close DR/CR with Net Balance option is not checked, the system generates entries for the DR amount and CR amounts separately.
The system generates an amount with a numerical sign that results in the sum of the DR amounts for the P&L accounts from period 1 to 999 to equal 0, and also generates an amount so that the sum of CR amounts for the P&L accounts from period 1 to 999 also equal 0.
The closing entries generated with opposite numerical signs in period 999 for the year 20X5 for the debit and credit columns are:
| Period | Account | Total | DR | CR |
|---|---|---|---|---|
|
999 |
403000 |
−80000 |
−3000 |
83000 |
|
999 |
500000 |
−65000 |
−71000 |
6000 |
|
999 |
360000 |
−15000 |
74000 |
−89000 |
Period 0 Amounts When the Initialize Dr/CR with Net Bal Option is Checked
If the Initialize DR/CR with Net Bal option is checked, the opening entries in period 0 for year 20X6 are:
| Period | Account | Total | DR | CR |
|---|---|---|---|---|
|
0 |
100000 |
45000 |
45000 |
0 |
|
0 |
210000 |
−20000 |
0 |
−20000 |
|
0 |
360000 |
−25000 |
0 |
−25000 |
Period 0 Amounts When the Initialize Dr/CR with Net Bal Option is Not Checked
If Initialize DR/CR with Net Bal option is not checked, the opening entries in period 0 for year 20X6 are:
| Period | Account | Total | DR | CR |
|---|---|---|---|---|
|
0 |
100000 |
45000 |
57000 |
−12000 |
|
0 |
210000 |
−20000 |
10000 |
−30000 |
|
0 |
360000 |
−25000 |
79000 |
−104000 |