# Fiscal years, locking and closing

> Lock a period to block backdated entries, run the year-end close that moves net income to retained earnings, and reopen a year if you must.

Canonical: https://docs.getonebooks.com/accounting/fiscal-years/
Language: en
Documentation index: https://docs.getonebooks.com/llms.txt

**Settings → Fiscal Years** lists your fiscal years, each **Open**, **Locked** or **Closed**. OneBooks creates the current year automatically from the start month in your company settings.

![The Fiscal Years table with period, net income, status and actions](https://docs.getonebooks.com/screenshots/en/settings-fiscal-year.webp)

## Lock a period

Locking stops anyone from posting, editing or reversing anything dated inside the year — the usual step once the accountant has finished with it or the tax return is filed.

1. Select **Lock** on the year.
2. To make changes later, select **Unlock**; lock it again when done.

![A fiscal year shown as Locked with the Unlock action](https://docs.getonebooks.com/screenshots/en/settings-fiscal-year-locked.webp)

Any attempt to post into a locked year is rejected with a clear message naming the period.

## Close the year

Closing transfers the year's net income into retained earnings so the new year's profit and loss starts at zero. The year must be **locked** first.

1. Select **Preview & Close**. The preview lists every revenue account (to be debited to zero), every expense account (to be credited to zero), and the balancing line to **3200 Retained Earnings (Closing)**.
2. Check the net income against your accountant's figure.
3. Confirm. The status becomes **Closed** and the closing entry is posted on the year's last day.

![The Year-End Closing Preview with revenue and expense totals and the balancing entry](https://docs.getonebooks.com/screenshots/en/settings-fiscal-year-close.webp)

> **Accounting effect**
> Debit each revenue account and credit each expense account for its year total; the difference (net income) goes to **3200 Retained Earnings (Closing)**. Opening balances are excluded from the sweep, and the balance sheet neutralises closing entries so equity is never double-counted.

## Reopen a year

**Reopen** on a closed year posts a reversal of the closing entry on the same date and returns the year to **Locked**. Use it only to fix a genuine error, then close again.

## Related

  - [Balance sheet](https://docs.getonebooks.com/reports/balance-sheet/)
  - [Fiscal year settings](https://docs.getonebooks.com/settings/fiscal-year/)