{"id":18270,"date":"2024-05-29T06:07:25","date_gmt":"2024-05-29T06:07:25","guid":{"rendered":"https:\/\/docs.daftra.com\/?post_type=user_manual&#038;p=18270"},"modified":"2026-01-20T10:56:18","modified_gmt":"2026-01-20T10:56:18","slug":"financial-period-closing-entry","status":"publish","type":"user_manual","link":"https:\/\/docs.daftra.com\/en\/user_manual\/financial-period-closing-entry\/","title":{"rendered":"Financial Period Closing Entry"},"content":{"rendered":"<section class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_column_text]Closing entries at the end of the accounting period are crucial for accurately calculating profits and losses and preparing financial reports. Errors in this process can lead to significant accounting risks.<\/p>\n<p>The system allows you to define accounting periods, control the timing of each cycle, and view closed periods in an archive. This provides greater insight into your operations and includes automatically generated reports.<\/p>\n<p>In this article, we will explore the process of closing a financial period and generating a comprehensive closing entry that accurately reflects profits and losses.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=&#8221;Closing a Financial Period&#8221; font_container=&#8221;tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1716811714109{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][vc_column_text]The system enables users to specify financial period dates and seamlessly close the period by generating an automatic, detailed closing entry. To do so, follow the steps outlined below.<\/p>\n<p>Click on &#8220;<strong>Accounting Settings<\/strong>&#8221; from the dropdown of &#8220;<strong>Accounting<\/strong>&#8221; in the main menu.<\/p>\n<p>Select the &#8220;<strong>Financial Period<\/strong>&#8221; tab.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-45379 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Financial-Periods.png\" alt=\"\" width=\"1365\" height=\"629\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Financial-Periods.png 1365w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Financial-Periods-300x138.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Financial-Periods-1024x472.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Financial-Periods-768x354.png 768w\" sizes=\"auto, (max-width: 1365px) 100vw, 1365px\" \/>[\/vc_column_text][vc_message message_box_style=&#8221;3d&#8221; message_box_color=&#8221;alert-warning&#8221; css=&#8221;.vc_custom_1716879066978{margin-left: 200px !important;}&#8221;]<strong>Closed periods<\/strong> differ from <strong>financial periods<\/strong> in that they do not generate financial journals for the closure. They simply prevent the creation of new financial transactions.[\/vc_message][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]You&#8217;ll be directed to the following screen to fill in the required data to close a financial period.<\/p>\n<ul>\n<li><strong>Start Date:<\/strong> Date of the first financial transaction done.<\/li>\n<li><strong>Period: <\/strong>The financial period duration.<\/li>\n<li><strong>End Date:\u00a0<\/strong>Set the date\u00a0for the new fiscal year.<\/li>\n<li><strong>Description:\u00a0<\/strong>Add the required description\u00a0for the new fiscal year.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-2-.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-18321\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-2-.png\" alt=\"\" width=\"1172\" height=\"626\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-2-.png 1172w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-2--300x160.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-2--1024x547.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-2--768x410.png 768w\" sizes=\"auto, (max-width: 1172px) 100vw, 1172px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>Specify the starting date of the financial period that you need to close. From the dropdown of the field &#8220;<strong>Period<\/strong>&#8221; select the duration for example 6 months and the system will automatically set the end date as illustrated in the following image.<\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-2.png\"><strong><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-18323\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-2.png\" alt=\"\" width=\"1200\" height=\"597\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-2.png 1200w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-2-300x149.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-2-1024x509.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-2-768x382.png 768w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/strong><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>To manually set the end date choose &#8220;<strong>Custom<\/strong>&#8221; from the dropdown of &#8220;<strong>Period<\/strong>&#8221; and you&#8217;ll be able to choose the desired end date.<\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-3.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-18325\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-3.png\" alt=\"\" width=\"1188\" height=\"597\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-3.png 1188w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-3-300x151.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-3-1024x515.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-3-768x386.png 768w\" sizes=\"auto, (max-width: 1188px) 100vw, 1188px\" \/><\/a><\/p>\n<p>then click &#8220;<strong>Save<\/strong>&#8220;.[\/vc_column_text][vc_column_text]After specifying the financial period start and end date, you&#8217;ll b be redirected to the financial periods list where you&#8217;ll find the one that you&#8217;ve just saved.<\/p>\n<p>Click on &#8220;<strong>&#8230;<\/strong>&#8221; on the right side of the screen and choose &#8220;<strong>Close<\/strong>&#8220;.<\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-33904 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/ipagjkefs.png\" alt=\"\" width=\"1024\" height=\"444\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/ipagjkefs.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/ipagjkefs-300x130.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/ipagjkefs-768x333.png 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p>Closing a financial period in the system involves specifying the dates for the next period. When you click on &#8220;<strong>Close<\/strong>,&#8221; a popup screen will appear, prompting you to set up the next period dates as shown in the following image.<\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-5.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-18345\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-5.png\" alt=\"\" width=\"1188\" height=\"528\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-5.png 1188w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-5-300x133.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-5-1024x455.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-5-768x341.png 768w\" sizes=\"auto, (max-width: 1188px) 100vw, 1188px\" \/><\/a>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_message message_box_style=&#8221;3d&#8221; message_box_color=&#8221;alert-warning&#8221; css=&#8221;.vc_custom_1716877949535{margin-left: 200px !important;}&#8221;]Closed periods cannot be edited by anyone on the system and to do so you need to cancel the next period to reopen the required one and edit it.[\/vc_message][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Set the start and end date of the next period,<\/p>\n<p>then click &#8220;<strong>Save<\/strong>&#8220;.<a href=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-6-1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-18354\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-6-1.png\" alt=\"\" width=\"1138\" height=\"365\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-6-1.png 1138w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-6-1-300x96.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-6-1-1024x328.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/Closing-Entry-6-1-768x246.png 768w\" sizes=\"auto, (max-width: 1138px) 100vw, 1138px\" \/><\/a><\/p>\n<p>After saving the next period you&#8217;ll find that the system has automatically calculated the total profit\/loss of the previous closed period.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-33906 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/ygtr7.png\" alt=\"\" width=\"1178\" height=\"587\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/ygtr7.png 1178w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/ygtr7-300x149.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/ygtr7-1024x510.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/ygtr7-768x383.png 768w\" sizes=\"auto, (max-width: 1178px) 100vw, 1178px\" \/><\/p>\n<p>To view the detailed entry of the closed period click on the period,<\/p>\n<p>then you&#8217;ll find the journal link beside the profit\/loss.<\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-33908 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/uctfyiguhij.png\" alt=\"\" width=\"1169\" height=\"529\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/uctfyiguhij.png 1169w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/uctfyiguhij-300x136.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/uctfyiguhij-1024x463.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/uctfyiguhij-768x348.png 768w\" sizes=\"auto, (max-width: 1169px) 100vw, 1169px\" \/><\/p>\n<p>you&#8217;ll then be directed to a detailed financial year profit and loss entry.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-33910 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/\u0627\u0627\u0644\u063a\u0647.png\" alt=\"\" width=\"1178\" height=\"633\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/\u0627\u0627\u0644\u063a\u0647.png 1178w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/\u0627\u0627\u0644\u063a\u0647-300x161.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/\u0627\u0627\u0644\u063a\u0647-1024x550.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/\u0627\u0627\u0644\u063a\u0647-768x413.png 768w\" sizes=\"auto, (max-width: 1178px) 100vw, 1178px\" \/><\/p>\n<p>Editing, adding, and deleting transactions from this entry is not permitted. If you attempt to click on &#8220;<strong>Edit<\/strong>,&#8221; an error message will appear, as shown below.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-33912 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/futgyhjk.png\" alt=\"\" width=\"1172\" height=\"592\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/futgyhjk.png 1172w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/futgyhjk-300x152.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/futgyhjk-1024x517.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/05\/futgyhjk-768x388.png 768w\" sizes=\"auto, (max-width: 1172px) 100vw, 1172px\" \/>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/section>","protected":false},"author":23,"template":"","categories":[2112],"tags":[],"class_list":["post-18270","user_manual","type-user_manual","status-publish","hentry","category-closed-periods"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Financial Period Closing Entry - Daftra Knowledge Base<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/docs.daftra.com\/en\/user_manual\/financial-period-closing-entry\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Financial Period Closing Entry - Daftra Knowledge Base\" \/>\n<meta property=\"og:description\" content=\"[vc_row][vc_column][vc_column_text]Closing entries at the end of the accounting period are crucial for accurately calculating profits and losses and preparing financial reports. 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