Creating a Post Closing Journal Entry

The Post Closing Journal option is used to enter journal entries into a prior fiscal year and the process for entering post closing entries is identical to entering general journal entries.  This type of journal is entered into a temporary batch file, Glpcbat.adt, that is located in the user's personal directory.

Post closing journal entries should only be made to balance sheet accounts, and will adjust the prior year's balance when they are posted through the system.  All post closing journal entries should be dated for the last day of the prior fiscal year.

If you have adjusting entries for the prior fiscal year that are associated with income statement accounts, then the net total of these entries should be posted to the retained earnings account or some other capital account as applicable. Post closing entries are the only entries that will adjust the prior year balances on the balance sheet accounts. General journal entries will not adjust the prior year balances.

In order to process any post closing entries, the Allow Prior Period Transactions option will have to be enabled. Please refer to the System Administrator > Configuration > Accounting documentation for more information on enabling prior period transactions. After any post closing entries are made, be sure to turn off the prior period setting, to make sure no other prior period adjustments are made accidentally.