Purpose

To return the temporary account balances to zero on the general ledger in preparation for the new accounting period, TRUE Accounting will automatically calculate and create closing journal entries for you to post when a period is closed.

Understanding Close Periods

The Close Periods module allows users to manage and close accounting periods, ensuring all necessary entries are posted before finalizing a period or year.

Column Headers

• Accounting Period: Displays accounting periods for an entire year, a specific accounting period, or a range of years
• Revenue: Amount a company receives from selling goods and/or providing services to its customers and clients
• COGS: Cost of Goods Sold. Displays total cost of expenses required to provide a service or product
• Gross Profit: Revenue minus cost of goods sold
• Expenses: Total cost of remaining expenses (usually administrative or selling expenses) used by a company to produce revenues
• Net Income: Gross profit minus expenses
• Closing Entry: Status of closing entries will be either posted or pending entry
• Green/Red "Padlock" Icon: A green padlock means the month is open for adjustments and posting. A red padlock means the month has been closed and journal entries to zero out all temporary accounts have been created

Search & Filter

• Quick Search: Enter a year in the Search bar located in the top left corner of TRUE to find a specific accounting period

Additional Features

• "Close Year" Button: Typically selected after all adjusting journal entries have been posted, this button will not successfully close the year until all month end closing entries are posted
• Batch Options: By checking the box to the left of either the 'Accounting Period' or by each month, users are able to recalculate the amounts displayed under each column, or batch close multiple months
• Summary Totals: Totals in the footer are for the current fiscal year

Common Workflow Questions

1. How do I close an accounting period?
2. What should I do before closing a year?
3. How can I reopen a closed period if I need to make adjustments?
4. Why might the "Close Year" button not work, and how can I resolve this?
5. How do I use the batch options to close multiple months at once?
6. What's the significance of the green and red padlock icons?