FAQ: Closing Period in Connected Business

Overview

This article describes how to close the Fiscal/Calendar Year inside Connected Business, two things will happen that we should observe.

1. Automated Closing Entry, which will zero-out Revenue and Expense and post the difference to the Retained Earnings Default Account.
2. Create Brought Forward Balance on Balance Sheet accounts.
   
   
   

Important Key Notes:

1. Use the "Close Period" option to close the period per month and year.
2. Year End General Journal Entry is produced, this will zero out revenue and expense and create an entry for the retained earnings.
3. Brought Forward Balances are created for Balance Sheet Accounts.
   
   
   

Use the "Close Period" option to close the period per month & year

To complete this task, do the following:

• Go to the Accounting Module. The Menu can be found under the Period Option. Drill down for more options available. Select the ‘Close Period’

• The ‘Month End Wizard’ will load. You can use this wizard to close the current period up to the last period of the Fiscal Year. (The image below shows the closing of fiscal year 2011)

Year End General Journal Entry is produced, this will zero out revenue and expense and create an entry for the retained earnings

• After closing the fiscal year, a journal entry will be created for Revenues, Expenses, and Retained Earnings (see image below). You can find it under Journal > Find Journals > See ‘Closing fiscal year FYR-0000001’

Brought Forward Balances are created for Balance Sheet Accounts.

• Once the fiscal year is closed, all accounts for the Balance Sheet will now have Brought Forward Balances for the year 2012 as seen in the image below. You can review those accounts under Financial Center > Balance Sheet, select any account code (w/ amount), go to ‘Account Detail Tab’, and refer to the ‘Brought Forward Balance’ Field.