At the end of a fiscal year, you must prepare your accounts for the next fiscal year and close the current fiscal year. Requirements for this process differ, based on the laws and accounting practices of the country/region where your company is located.

Use the following information to prepare for a new fiscal year and close the current fiscal year.

Note Note

We recommend that you consult with your accountants or auditors to ensure that the accounts fulfill all legal requirements.

  1. Verify the closing options that you have selected.

  2. If you are using , complete the inventory closing process. For more information, see Inventory closing.

  3. Complete month-end and other period closings in all modules other than , including exchange adjustments on unrealized transactions. For more information, see Period closing in ledger.

  4. Complete month-end and other period closings in and print financial reports for the month and quarter. For more information, see Monthly closing in ledger.

  5. If your company is a consolidation company, complete steps 1 through 4 for each subsidiary, and set up the subsidiary accounts to consolidate data. If the data for the subsidiary companies is in a separate database, export the subsidiary data to use in a trial consolidation.

    To close the fiscal year for a subsidiary company, refer to Prepare a consolidated company for a consolidationand Perform an online consolidation. Refer to Example of consolidation with currency conversionfor more information about consolidation.

  6. Complete year-end closing activities in all modules, other than , that might create some ledger postings, such as processing year-end depreciations in .

  7. Create the new fiscal year. For more information, refer to Create new year (form).

  8. Set appropriate periods to for the current fiscal year.

  9. Back up your company's data.

  10. Make adjusting entries. Click > > > to create and post all necessary adjustments, including adjustments to taxes and writeoffs.

Note Note

You also can post adjustments in the .

  1. Print final financial statements. For more information, refer to Generate, print, and export a financial statement.

  2. Print 1099 statements for vendors that require the statements. For more information, refer to (USA) United States tax 1099.

  3. Transfer opening balances for ledger accounts to a new fiscal year. For more information, refer to Transfer opening balances to a new fiscal year.

  4. You can reset number sequences. Click > > > .

  5. Print the final reports for the fiscal year, including financial statements, such as the operating statement and the balance sheet, and publish the statements as required by law. For more information, see Financial statements.