Close Income Statement

The standard Close Income Statement was changed to allow users to close income statement accounts monthly. Also, for companies using Additional Currency, the closing journal lines are generated in General Journal Lines, and not posted directly to General Ledger Entries.
Another solved issue is that of income statement accounts having mandatory dimensions. Development was made to allow posting close income statement journal lines without validating mandatory dimensions.

Note

Income statement accounts must have:

  • Income/Balance = Income Statement;
  • Closing Account = the closing account.

To use the functionality, you must run the Close Income Statement batch to close income accounts for a certain month.

Setup G/L accounts

  1. Open Chart of accounts using Tell me icon;
  2. Close Income Statement routine generates closing General Journal Lines only for G/L Accounts having:
  • Income balance – Income Statement;
  • Closing Account – the closing account.
  1. The amounts are generated taking into consideration the value of the Debit/Credit field from G/L Account Card:
  • Debit amounts – for credit G/L Accounts;
  • Credit amounts – for debit G/L Accounts.

Setup General Ledger Setup

  1. Open General Ledger Setup using Tell me icon;
  2. In tab Arggo Localization, a new field was added: Excl. Dimensions For Closing. If this field is marked, the system doesn’t check dimension restrictions when posting entries having month-closing posting dates.

Run Close Income Statement batch

  1. Run Close Income Statement Arggo procedure from Tell me icon;
  2. The following fields must be filled in:
  • Month Ending Date – the end of the month to close;
  • Gen. Journal Template – select the template of the General Journal the lines are generated into;
  • Gen. Journal Batch – select the batch name of the General Journal the lines are generated into;
  • Document No. - the system will use to generate General Journal Lines with;
  • Retained Earnings Acc. – blank;
  • Posting Description the system will use to generate General Journal Lines with.
Important

In case the company uses mandatory dimensions on income statement accounts, these mandatory dimensions must be selected in the Dimensions field. Another option is to check Excl. Dimensions For Closing field from General Ledger Setup. In this case, the system doesn’t check dimension restrictions at posting general journal lines having closing posting dates.

  1. Press YES and then OK. The journal lines will be successfully created in the General Journal Template and General Journal Batch that you have selected previously.
Important

Before posting, these lines must be verified by the user. After posting, the income accounts are closed.

Posted Results

The procedure generates General Journal Lines with closing amounts for income statement accounts with balance in the period.