Fiscal year end option "create closing transactions during transfer"

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Hi All

When I search for the use of this options, it seems that this box is prefered checked. But I dont understand why I need to check this, because, after I close the year and print the previous income statement, all account is zero (coz the statement include closing transaction).

Could anyone please tell me whats the point of check this box in detail (I dont understand the explanation I found)?

Thanks

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Chandu Naresh 982 on at

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If you don't enable "Create closing transactions during transfer" the balances in profit and loss account will remain as it is in the new fiscal year.

Inorder to better understand this function, first you uncheck this button and run the closing for Fiscal year. go to Trial Balance and check the impact of this generation.

Now , enable this checkbox and run the fiscal year close once again. then generate the Trial Balance and compare this with the previous trial balance.

You will observe that the P&L balances vary

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Thanks Chandu!

I did, and I found that when I view TB, as at 31/12, there are closing balance in both balance and P&L accounts, but as at 1/1, only balance acct have brought forward, P&L acct is 0, so with the box is checked the previous year all acct balance will become zero.

If i checked this box, how can i print previous year P&L that is not zero balance?

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Chandu Naresh 982 on at

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In the previous year, there will not be any impact.

Speaking in the pure accounting perspective: "You need to select this checkbox" for year end closing.

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André Arnaud de Cal... 303,775 Super User 2026 Season 1 on at

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Hi Phoebe,

Microsoft provided this option for the next reasons:

- If you enable and run some reports, you have indeed 0 balance on P&L accounts in the previous year. On some reports you can select if you want to incluse closing transactions or not.

- If you do not enable the report in the old year is always stating the old balance of the P&L accounts.

Like Chandu, I prefer this option being enabled.

When you run the year end proces, AX will create opening transactions. When this tick box is enabled it will also create closing transactions.

Printing an opening balance is always taking the opening transactions of the selected year. It will always ignore normal transactions of year prior to the selected date. So for the opening balance there is no difference if you use this option or not.

The difference is explained with a small example:

Transactions on a balance account during a year:

6-6-2014: $ 500 (normal)

7-7-2014: $ 300 (normal)

When you run the year closing it will generate the next transaction with option closing disabled:

1-1-2015: $ 800 (opening)

When the option was enabled you get the next additional transaction:

31-12-2014: $ -800 (closing)

If you export all transactions of a main account to Excel and do a cumulation on all years, without the closing transactions you will have the sum $ 1600 which looks strange.

With the closing transactions it is summed as $ 800.

As it is also possible to have another opening account for certain main accounts, using the 'create closing transaction' option will provide some better insights about certain balances.

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Community Member on at

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Hi Andre

Thanks for your reply. I found that the financial statement can choose whether to include the closing transaction or not!

Regards

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