30 lines
928 B
Markdown
30 lines
928 B
Markdown
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{
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"_label": "Closing a Financial Period"
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}
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---
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At the end of every year or (quarterly or maybe even monthly), after completing auditing, you close your books of accounts. This means that you make all your special entries like:
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- Depreciation
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- Change in value of Assets
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- Defer taxes and liabilities
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- Update bad debts
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etc. and book your Profit or Loss.
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By doing this, your Income and Expense Accounts become zero .You start a new Fiscal Year (or period) with a balanced Balance Sheet and fresh Profit and Loss account.
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In ERPNext after making all the special entries via Journal Voucher, you can make all your Income and Expense accounts to zero via:
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> Accounts > Tools > Period Closing Voucher
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The Period Closing Voucher will make accounting entries (GL Entry) making all your Income and Expense Accounts zero and transferring the balance to the Account you define. |