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balance

Hi All,

Should I tick add closing balance tickbox of the balance sheet report selection criteria if I want to compare the profit period in the balance sheet report with P&L report ?

Will it give different result if ticked and unticked ?

Pls give advice. TIA

Rajh

Edited by: Philip Eller on Jul 4, 2008 10:15 AM

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  • Best Answer
    Posted on Jun 20, 2008 at 01:35 AM

    Hi Rajh,

    For more information:

    If you want to print the Balance Sheet at the end of the year, after the year-end closing transaction has been executed, select the Add Closing Balances option. In this way, the Balance sheet shows the balance of the Period-End Closing account.

    To print the balance sheet from the previous fiscal year correctly with the posted values of the Year-End Closing account, you must select the Add Closing Balances option. This shows the result of the fiscal year you are closing in the Period-End Closing account. It also shows the balance of the previous fiscal years in the Retained Earnings account.

    This occurs because the Period-End Closing transaction posts the result of the period to the period-end closing account with posting date of last day of the fiscal year. Additionally, this routine creates a second posting whereby this result is taken again from the Period-End Closing account and posted to the Retained Earnings account. This is done with a posting date of the first day of the new fiscal year. As a result, the balance of the Period-End Closing account shows the result of the year to be closed, while the balance of the Retained Earnings account shows the result of the previous fiscal years.

    Regards,

    Candice Ren

    SAP Business One Forums Team

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    • Hi,

      Try to learn this explanation about period end closing:

      Period-End Closing

      To carry forward the balances of the P&L accounts to the corresponding account in the balance sheet (or several different balance sheets), you can use the PERIOD-END CLOSING function. You can store the result initially as a report and then post them at a later stage.

      If you make postings after the balances carried forward have been entered, you need to restart the period-end closing routine to include these subsequent postings.

      Administration u2192 Utilities u2192 Period-End Closing

      When the balance is carried forward, the balances of the P&L accounts are posted to a clearing account on the day of carrying forward (the last day of the period). Therefore, the balances are reduced to zero. On the first day of the subsequent period, the clearing account is posted to the corresponding balance carried forward to the account in the balance sheet.

      Before the balance is carried forward, check the accounts in the P&L appendix, and, if necessary, do not carry these forward (for example, if they are statistic accounts).

      and about the balance sheet:

      The balance sheet for a particular date is a report showing the up-to-date accumulated assets,

      liabilities and equity amounts in the company. The Balance Sheet formula is:

      Total Assets = Total Liabilities + Total Equity.

      Profit Period - The balance sheet includes the profit or loss total (from the profit and loss

      statement) to the selected period

      You would usually run this report at the end of every fiscal year to realize the stability of the

      company.

      and this is the explanation of add closing balance tick box :

      By default, the box is cleared.

      Select this box to include period-end closing journal entries in the report.

      In this case, the Profit Period shows a zero balance for a closed posting period.

      When the box is cleared, period-end closing journal entries will not be included in the report. That is, the Profit Period will show the balance prior to the period-end closing process.

      When the box is selected, the report will include period-end closing

      journal entries for the chosen posting period only.

      The balance of previously closed periods will be displayed in the

      Retained Earnings G/L account (whether the box is selected or not).

      1. The company has two closed posting periods: 2003 and 2004.

      When this box is not selected and you run the report to 2004, the

      report displays the balance of the Profit Period from the beginning of

      2004. The balance of the previous periods (2003) will be displayed

      in the Retained Earnings G/L account.

      2. When this box is selected and you run the report to the last day of the posting period (December 31st 2004), the report displays a zero balance for the Profit Period. The balance of the previous posting periods (2003) will be displayed in the Retained Earnings G/L account and the balance of the profit and loss accounts of 2004 will be displayed in the Period-End Closing G/L account.

      3. When this box is selected and you run the report to the next posting period (2005), the balance of the previous posting periods will be displayed in the Retained Earnings G/L account.

      In Italy, Spain, France and Portugal localizations you can transfer

      also the balances of Balance Sheet accounts from one fiscal year or posting period to another. In these localizations the period-end closing process is different than described above. Therefore, the effect of this box on the Balance Sheet is different.

      I suggest to see the balance sheet profit period month per month including the P&L report. For example, B/S report posting date : To 01/01/2006 and P&L report from 01/01/2006 and 01/31/2006.

      Do not forget to run exchange rate different and conversion differences before performing period end closing.

      Let me know

      Rgds,

  • author's profile photo Former Member
    Former Member
    Posted on Jun 20, 2008 at 12:53 AM

    Rajh,

    I do not think so. Please read the following on the actual use of Checking this box.

    Select this checkbox to include period-end closing journal entries in the report.

    In this case, the Profit Period shows a zero balance for a closed posting period.

    When the checkbox is cleared, period-end closing journal entries will not be included in the report. That is, the Profit Period will show the balance prior to the period-end closing process.

    Suda

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