How to Close Your Year

First, check that all periods are in the Open state.

In SAP Business One, an open period can have one of three states: Closing Period, Unlocked Period, and Unlocked
Except Sales. Go through and verify that none of your periods are in a Locked state. Periods should only be locked
once they will no longer be used (ie: after your year end closing).

Second, launch the Period End Closing Tool. This tool is located at : Main Menu Administration Utilities
Period End Closing.

You must then select the General Ledger (GL) accounts that need to closed. Select them by clicking the check
boxes. After you select the accounts, select the periods to close by choosing the first period of the year in the
From drop down list, and the last period in the To drop down list.

Select the GL accounts for Retained Earnings and Period End Closing.

Then you must approve the recommended postings. Once completed, you will need to confirm transactions.

To do this, simply run the Balance Sheet Report for the last day of the previous year, and the first day of the new
year to compare.

Tip: Make sure the check box Add Closing Entries is checked for the new year.

Compare the Retained Earnings in the two reports to check that everything was closed correctly at year end.

And thats all! SAP Business One makes this process much simpler than it has historically been Performing year
end closing has never been this easy.