The financial condition of an organization at the end of a fiscal year is listed in a profit & loss statement. The balance at the end of a fiscal year or period will be carried forward to the next fiscal year or period as an opening balance. In normal accounting practice, you have to close the journals at the period or year end after processing the Profit and Loss account. To bring the balance of a profit & loss account back to zero, you can process the profit & loss account at this page. Based on the postings that are created automatically in the general ledger, the result of the previous fiscal year or period is transferred to the opening balance of the next fiscal year or period.
Financial/Entry/Transactions/Process: Result
To process the profit & loss accounts, function right 358 - Allows to process profit/loss summary for a financial year is required. Users with the Administrator and General manager roles have this function right.
During the processing stage, you may encounter a message if the periods that you want to process are closed. You will need function right 228 - Allows to close/open years/periods to reopen the closed periods in order to continue processing. Users with the General manager and Controller roles have this function right.
For more details on what you can do with function rights or levels, go to System/Setup/Security/Function rights, select the required module, and then click on the relevant ID. To find out the functions you can perform with a particular role, go to System/Setup/Security/Roles, type in the description, click Refresh and then click the required link under the Role column.
Click this to display the processed financial transactions according to the defined criteria.
Note: Once you have clicked this button, the name of the button will change to Refresh.
Click this to update the results according to the defined criteria.
Click this to clear the defined criteria so that you can start a new search.
Click this to process the profit & loss accounts.
Note: This button is displayed after you click Show or Refresh and when there are results displayed.
Click this to exit.
Select a division linked to the processed financial transactions. For more information on creating and modifying divisions, see Creating and Modifying Divisions.
Type or select the general ledger account to which you want to post the result. You must select the general ledger account of the Balance Sheet type which is the profit current year or retained earnings account. This is mandatory. For more information, see Overview of G/L Account Cards.
Type a year linked to the processed financial transactions. By default, the description is generated by the system when you enter a year. These are mandatory. The year that you enter indicates the year-end closing you intend to process. For example, if you type the year 2007, the system will process the year-end closing entries on January 31, 2007.
Select Reporting date or Date to display the results of processed financial transactions.
Type or select the profit & loss general ledger account in order for the total amount of all profit & loss accounts to be balanced. This is mandatory. For more information, see Overview of G/L Account Cards.
Select Standard or Fiscal to determine the type of transaction that you want to display for the processed financial transactions.
Select Year or Year / Cost center to group and display the search results according to the year or year and cost center.