How To Do End-of-year Closure of Books

Step 1; Generate Financial Reports:

• Compile relevant accounting reports, including the Balance Sheet and Profit and Loss statement by generating them under the Finance section on Core.

Step 2; Identify Zero-Rated Items:

• Determine expenses and incomes eligible for zero-rating.

Step 3; Access Journal Entry Section:

• Navigate to the journal entry section to initiate the zero-rating process.

Step 4; Zero-Rate Expenses and Incomes:

• Credit accounts for expenses with a positive balance and debit accounts for incomes with a positive balance.

Step 5; Allocate Variances to Appropriation Account:

• Aggregate the difference between expenses and incomes and allocate it to the appropriation account.

Step 6; Assign Booking Date:

• Set a booking date at the close of the previous year.

Step 7; Submit Entries:

• Complete the process by submitting the journal entries.

Step 8; Confirmation:

• Confirm that all incomes and expense for the year are zero and that the Net Income has been posted in the appropriation account.