Wiki Detay | wiki workcube

Income account closings are the process of, at the end of an accounting period (usually month or year), the balances of all income accounts obtained by the business in that period are reset to zero and transferred to the 690 Period Profit or Loss account.

In the accounting system, income accounts are in the class of temporary (periodic) accounts. In other words, they must be closed at the end of the period in order to start each new period with a zero balance and to be able to measure the profit/loss situation of that period alone.

What are Workcube Income Account Closing Definitions?

End-of-period accounting transactions are a legal obligation for businesses to prepare their financial statements (Balance Sheet and Income Statement) correctly. Definition screens are a parametric definition screen that automates one of the most critical stages of this process: reflecting cost and expense accounts and closing (transferring) income and expense accounts to end-of-period profit/loss accounts.

In Workcube ERP Accounting architecture, this screen; It is directly integrated with General Ledger, Period End Transactions and Reflection Slip Wizards. Instead of creating a manual offset voucher at the end of each period, users enable the system to automatically create closure vouchers thanks to the template rules they define on this screen.

The Importance of Account Closing Definitions for a Business

Operational Speed and Time Saving: While manually closing expense and income accounts consisting of hundreds of sub-accounts could take days, thanks to these definitions. Automatic closing slips are created within seconds.
Resetting the Risk of Error: It completely eliminates the risks of transferring to the wrong account or making numerical errors in balance transfer resulting from manual data entry.
Ease of Auditing: Since which account is transferred to which closing account can be monitored in a transparent template on the system, it provides great convenience in internal and external audit processes.

What Should Be Considered When Managing Account Closure Procedures?

A. Chart of Accounts Compatibility and Correct Masking

In reflection templates, the breakdowns (accounting detail levels) of the source and target accounts must be fully compatible with each other. It should be ensured that the definitions made at the detail account level will be reflected in an account at the same detail level on the other side.

B. Database Recording Behavior and Preservation of Existing Templates

When a new closing template is created and saved in the system, all old definitions are deleted and current table rows on the screen are re-saved in order to preserve database performance and integrity.

Feedback

Did you find this content helpful?

Please Write Your Feedback!

Name*

Last Name*

Email *

About Workcube Objects

Income Statement Closure Definitions

At the end of the accounting period, expenses in the cost accounts are reflected in the income statement accounts through reflection accounts.

Type: WBO Version: Catalyst v11 Licence: Standard Author: Workcube Core