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About closing the fiscal year
Close the fiscal year at year-end when you want to close the general
ledger year for your company.
When you close the fiscal year, Ajera creates entries with an accounting
date equal to the close-year date to reverse balances from the Income
and Expense accounts and write the difference to the Retained Earnings
account.
Account
Current value balance
Close-year entry
Credit
Debit
Credit
Debit
Income or Expense
x
x
Retained Earnings
x
Income or Expense
x
x
Retained Earnings
x
The table in the Close Year window contains
a row for each account and department combination from your chart of accounts. You cannot change information in the table. The Net Income column contains
the difference between the debit and credit columns. If the Net Income
is a gain, it appears as positive. If it is a loss, it appears as negative.
Note:
When the Net Income is
a gain, the entry to Retained earnings is a credit.
When the Net Income is
a loss, the entry to Retained earnings is a debit.
