Where it is
Finance › New Ledger › Ledger Periods & Year End → find the period → Year-end close.
🔴 It is in the New Ledger. The original finance screens still have no closing entry, and their income and expense ledgers still carry forward — that has not changed.
What it does
One action that debits each income head and credits each expense head against a Profit & Loss account, with a narration naming the period, while balance-sheet accounts carry forward untouched. Income and expense then start the next period at zero.
You see a preview first — every account that will be debited or credited, and the resulting profit or loss. Nothing is posted until you confirm.
Where the result goes
- Retained earnings — one account.
- Partners' capital accounts, by share — split by each shareholder's percentage, from Finance › Shareholders. A profit is added to their capital, a loss deducted.
- Leave it in Profit & Loss.
Closing monthly
Define monthly periods rather than one annual period and run it on each. It works on whatever period you give it.
Two things that catch schools out
- The Profit & Loss account must be an equity account. If yours is filed under expenses — an account named something like "Year Profit/Loss" sitting in General & Administrative Expenses is a common setup — it will not appear in the list and the action will be refused. Change its type in the New Ledger chart first. Putting income and expense into an expense account would leave the books permanently wrong, which is why it is blocked rather than allowed.
- Partners' shares must add up to 100%. If they do not, you are told the actual total and nothing is posted — a split that does not total 100% would quietly under- or over-allocate the period's profit.
A period can only be finalised once. To redo it, reverse the entries on Ledger Journals and run it again.