Fiscal years, locking and closing

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.

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.

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.

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

Fiscal year settings