Period Closing Voucher

The Period Closing Voucher is the year-end document that empties every Profit and Loss account into Retained Earnings. It debits each income account by its balance, credits each expense account by its balance and posts the net profit or loss to the closing account, so that Shrawan 1 starts with all income and expense at zero while Balance Sheet accounts carry on untouched. Run it only after Ashadh end, after the auditor's adjustments, depreciation and tax provisions are in, because any voucher posted into the closed year afterwards reopens the gap. Cancelling the voucher reverses the sweep. It is one voucher per fiscal year; the demo books hold one for FY 2082-2083.

Transfer to Retained Earnings = Sum of Income balances - Sum of Expense balances for the closed fiscal year.

1. 01Finish all adjustments for the year, then run Financial Reports > Trial Balance to confirm it ties.
2. 02Go to Invoicing > Period Closing Voucher and click New.
3. 03Set Transaction Date to the first day after Ashadh end and pick the Fiscal Year being closed.
4. 04Set Closing Account Head to Retained Earnings and add a remark such as Closing FY 2082-2083.
5. 05Submit. The entry above posts and every income and expense account starts the new year at zero.
6. 06Open Financial Reports > Balance Sheet for the new year; Retained Earnings now includes the year's profit.

Run once after Ashadh end, after the audit adjustments. Balance Sheet accounts are untouched.

FY 2082-2083 was closed with one voucher that transferred the year's profit into Retained Earnings.