How to close the fiscal year

The year-end closing posts an entry dated on the last day of the year that brings the revenue, cost, expense and other income accounts to zero and moves the profit or loss to Profit or loss for the year.

Why: in SAP it is the Period-End Closing utility. In Nori it sits next to each fiscal year, on the periods screen.

Before closing

1. Create the next fiscal year so January's operations keep posting.
2. Enter your closing adjustments as manual journal entries dated in December.
3. Review December's trial balance and income statement.
4. December must be Open or Closing.

Close

1. Go to Accounting › Setup › Posting periods and choose the Fiscal year.
2. Next to the fiscal year's name leave In period 13 (closing adjustments) checked. That way the entry shows in month 13's trial balance and not in December's.
3. Click Close the fiscal year and confirm.

The fiscal year shows the Closed badge and a link to the closing entry.

After the closing

• The income statement leaves out the closing entry, so it still shows the year's profit.
• Moving Profit or loss for the year to Retained earnings at the start of the new year is a manual journal entry.
• When you are done, close the periods of the year.
• Generate month 13's trial balance in electronic accounting.

Reopen the fiscal year

If you need to fix something, click Reopen the fiscal year and confirm. Nori reverses the closing entry with the same date. Make your corrections and close again.

If something doesn't add up

• You don't see Close the fiscal year: your role lacks Open, lock and close posting periods.
• "The income statement accounts of fiscal year … have no balance": there is nothing to close that year.
• "Fiscal year … is already closed": reopen it to close it again.
• It won't close: check that December is Open or Closing.