Create Accounting period in Business Central.
CREATION OF ACCOUNTING PERIOD.
Step1. Globally search “Accounting Period” and click on the related link.
![](https://www.cloudfronts.com/wp-content/uploads/2022/03/image.jpeg)
Step2. To create a new accounting period, select process and then click Create year.
![](https://www.cloudfronts.com/wp-content/uploads/2022/03/image-8.jpeg)
Step3. By default, system will have a starting date as per the last created accounting period.
- The no. of periods is 12 by default
- Period length usually is 1M but can be modified to weeks or quarters.
![](https://www.cloudfronts.com/wp-content/uploads/2022/03/image-7.jpeg)
Click ok and a new accounting period is created.
![](https://www.cloudfronts.com/wp-content/uploads/2022/03/image-9.jpeg)
CLOSE ACCOUNTING PERIOD
Step1. Select Process action and then click on Close Year
![](https://www.cloudfronts.com/wp-content/uploads/2022/03/image-4.jpeg)
Step2. System pops up a message stating the start and end date and once the period is closed it cannot be undone.
![](https://www.cloudfronts.com/wp-content/uploads/2022/03/image-11.jpeg)
Once you click OK, the closed and data locked column is check true.
![](https://www.cloudfronts.com/wp-content/uploads/2022/03/image-13.jpeg)
After Closing the accounting period, we need to close the Income Statement.
Step1. Globally search “Close Income Statement” and select the related link
![](https://www.cloudfronts.com/wp-content/uploads/2022/03/image-5.jpeg)
Step2. The Fiscal year ending date is automatically filled by the system
![](https://www.cloudfronts.com/wp-content/uploads/2022/03/image-10.jpeg)
Step3. Select the journal template you need to post.
![](https://www.cloudfronts.com/wp-content/uploads/2022/03/image-2.jpeg)
For Journal batch, create a new batch that can be uniquely identify year end.
![](https://www.cloudfronts.com/wp-content/uploads/2022/03/image-1.jpeg)
Step4. Fill in all the necessary details.
![](https://www.cloudfronts.com/wp-content/uploads/2022/03/image-6.jpeg)
Click OK and Journal lines are created
Step4. Navigate to General Journal and select the batch name
![](https://www.cloudfronts.com/wp-content/uploads/2022/03/image-12.jpeg)
Check if the balance is correct before posting.
(First preview post the entries to verify the G/L entries)
Step5. Post the journal lines.
![](https://www.cloudfronts.com/wp-content/uploads/2022/03/image-3.jpeg)
![](https://www.cloudfronts.com/wp-content/uploads/2022/03/image-14.jpeg)
After posting check the retaining earning account.
Hope this helps!
Thank you.