Most critical annual accounting process. Errors carry forward.
| Account | Series | Action |
|---|---|---|
| Revenue | 4xxx | Zeroed out |
| COGS | 5xxx | Zeroed out |
| Expenses | 6xxx | Zeroed out |
| Current year result | 3030 | Receives P&L |
| Prior years | 3040 | Accumulates |
Year-end accounting process: verify the trial balance, close income/expense accounts to zero, and transfer net profit/loss to equity. In Mexico, the fiscal year runs Jan 1 to Dec 31 (Art. 11 CFF).
Unposted journal entries, unbalanced trial balance, unclosed monthly periods, or entries already captured in next year.
Income (4xxx) and expenses (5xxx-6xxx) are zeroed out. Net result transfers to equity account 3030.
Yes. Processes > Reopen Fiscal Year. Back up first.