A Closing Entry is made at the end of an accounting period to transfer the net balances of income and expense accounts into a retained earnings account. This resets temporary accounts for the new period and moves the period's profit or loss to equity.
Closing entries are accessed from Accounts → Settings → Closing Entries. The list shows each closing entry with its period range, notes, and status.
List columns
`Id`, `From Date`, `To Date`, **Notes**, `Status`
Quick filters
| **Filter** | **Shows** |
|------------|-----------|
| Approved | Approved closing entries |
| Draft | Draft closing entries |
| Cancelled | Cancelled closing entries |
Header actions
| **Action** | **Description** |
|------------|-----------------|
| New | Opens the new closing entry form |
Click a row to open it in view mode (footer action: **view**).
List View
Quick Start — Create a Closing Entry
1. Navigate
Go to Accounts → Settings → Closing Entries.
2. Create new closing entry
Click New to open the form.
3. Fill in details
Set the From Date and To Date for the period.
Select the Retained Earnings Account.
Add optional Notes.
4. Save
Save — builds the closing lines and saves as a draft.
Reset — clears the form.
Cancel — closes the form without saving.
Approve the closing entry from the view screen to post it.
Form Fields Reference
| **Field** | **Description** |
|-----------|-----------------|
| From Date | Start of the closing period. Mandatory. |
| To Date | End of the closing period. Mandatory. The closing journal is dated to this date. |
| Retained Earnings Account | Equity account that receives the net profit or loss. Mandatory. |
| Notes | Optional remarks. |
Edit form lines
On the edit form, a lines table is available (with New line) to review or adjust the generated entries:
`Account`, `Debit`, `Credit`, `Notes`
How It Works
When you save a closing entry, the system automatically:
Calculates the net balance of each Income and Expense leaf account for the selected period.
Builds closing lines that zero out those temporary accounts.
Posts the net amount (profit or loss) to the selected Retained Earnings Account.
On approval, a journal of type Closing Entry is posted, dated to the To Date. If there are no income or expense transactions in the period, the system shows No Transactions.
Actions & Status
Statuses
| **Status** | **Description** |
|------------|-----------------|
| Draft | Saved but not yet approved. Can be edited or deleted. |
| Approved | Finalized and posted to retained earnings. |
| For Revisal | Sent back for correction. Can be edited or deleted. |
| Cancelled | Voided. Journal reversed. |
View actions
| **Action** | **When available** | **Notes** |
|------------|-------------------|-----------|
| Approve | Draft | Posts the closing journal |
| Edit | Draft, For Revisal | Allows adjusting lines |
| Delete | Draft, For Revisal | |
| clone | All statuses | Hidden when clone is disabled in user settings |
| Cancel | Approved | In the more menu (⋮) |
| Add/Update Note | All statuses | Updates Notes only |
View detail fields: Closing Entry No., From Date, To Date, Notes, plus the lines table (Account, Dr, Cr).
Master Update is not available for closing entries.
View Tabs & Side Panels
Closing entries may not show standard transaction side panels in all ERP configurations. When available in full view, the right side shows tabbed panels. Click the expand icon on a tab to open the same data in a larger modal.
Bottom panel
| **Tab** | **What it shows** |
|---------|-------------------|
| History | Activity log — who created, approved, edited, or cancelled the closing entry and when. |
| Attachments | Files uploaded to this closing entry, when attachments are enabled. |
FAQ
What does a closing entry do?
It transfers the net balances of income and expense accounts for the period into the retained earnings account, resetting those temporary accounts for the next period.
Which accounts are included?
All Income and Expense leaf accounts with activity in the selected period.
What date is the journal posted on?
The closing journal is dated to the To Date of the period.
Why do I see "No Transactions"?
There were no income or expense transactions in the selected period, so there is nothing to close.
Can I adjust the generated lines?
Yes. Use the edit form's lines table to review or adjust entries before approving.
Is Master Update available?
No. Closing entries do not support Master Update.
Blocks later journals?
Closing entry for a date range prevents journal edits in that range.
Retained earnings account?
Net P&L transfers to selected equity/retained earnings account.
