Oracle Cloud - Year End Process

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Many countries follow specific procedures to generate journal entries to close and open fiscal years. These year-end entries apply to both the income statement and balance sheet accounts. Auditable closing procedures vary based on country's reporting requirements and an organization's business needs. Oracle Fusion General Ledger provides two processes for the year-end closing journals. These processes close the accounts by putting the sum of the debits in the credit and vice versa. For many European countries the accounts must be closed by recording the difference between the total debits and total credits.


Optionally run one or both of these closing processes to create one of two types of closing journals that move forward year-end and other closing period-end balances.

Create Income Statement Closing Journals: Posts all of the income statement account balances to one or more retained earnings accounts.
Create Balance Sheet Closing Journals: Posts all asset, liability, and equity balances to one or more closing accounts


GL automatically net P&L to retained earnings and roll the balance sheet forward at year-end. Some countries require journals for these processes to provide an audit trail so they run these programs.

When user open the first period for the new fiscal year - Fusion automatically runs jobs to move the P&L to Retained Earnings and roll-forward the balance sheet account balances.

And if user make any entries and then post them in previous year periods then also system move affected P&L to Retained Earnings and roll-forward the balance sheet account balances to all forward open periods including those are in next year.

So if Jan-7 period is now Opened and user made entries in previous period i.e DEC-20 , posting program does the job to move affected P&L to Retained Earnings and roll-forward the balance sheet account balances to all forward open periods.

NOTE:- Just a knowledge sharing. Do not rely 

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