Year End Closing Wizard Documentation¶

Overview¶

The Year End Closing wizard model (year.end) creates the year-end closing journal entry that transfers income and expense account balances to retained earnings. This is an essential part of the accounting year-end close process.

Model Information¶

Model Name: year.end Display Name: Year End Transient: Yes Key Fields: None (transient model)

Features¶

✅ Transient model (temporary data)
❌ Audit logging enabled (_audit_log)
❌ Multi-company support (company_id)
✅ Auto-calculates year-end date from settings
✅ Voids and replaces existing entries
✅ Supports tracking dimensions

Key Fields Reference¶

All Fields¶

Field	Type	Required	Description
`date`	Date	✅	Year end date
`journal_id`	Many2One	✅	Journal for closing entry

Default Values¶

_defaults = {
    "date": _get_date,  # Calculated from settings
}

The default date is calculated from Settings: - Uses year_end_month and year_end_day from settings - Applies to current year

API Methods¶

1. Get Date¶

Method: _get_date(context)

Calculates default year-end date from settings.

Example:

# If settings: year_end_month=12, year_end_day=31
# Returns: "2024-12-31" (for current year)

2. Create Entry¶

Method: create_entry(ids, context={})

Creates the year-end closing journal entry.

Process: 1. Calculates date range (year before closing date) 2. Finds all income/expense accounts: - revenue - other_income - cost_sales - expense - other_expense 3. For each account with balance: - Creates line to zero out balance 4. Creates offsetting line to retained earnings 5. Voids existing closing entry if present 6. Posts the new entry

Settings Required: - retained_earnings_account_id: Target account for net income - year_end_track_id: Optional tracking dimension - year_end_track2_id: Optional secondary tracking

Returns: Navigation to journal entry view with flash message

Raises: - Exception("Retained earnings account not found") - Exception("Failed to generate journal number")

Model	Relationship	Description
`account.journal`	Many2One (journal_id)	Closing journal
`account.move`	Created	Closing entry
`settings`	Reference	Configuration

Account Types Closed¶

Account Type	Direction
`revenue`	Debit (to zero credit balance)
`other_income`	Debit (to zero credit balance)
`cost_sales`	Credit (to zero debit balance)
`expense`	Credit (to zero debit balance)
`other_expense`	Credit (to zero debit balance)

Common Use Cases¶

Use Case 1: Create Year-End Entry¶

# Create wizard
wiz_id = get_model("year.end").create({
    "date": "2024-12-31",
    "journal_id": closing_journal_id,
})

# Create closing entry
result = get_model("year.end").create_entry([wiz_id])

# Navigate to created entry
move_id = result["next"]["active_id"]

Use Case 2: Re-run Year-End¶

# If corrections needed, re-run wizard
# Existing entry for same journal/date is voided automatically

wiz_id = get_model("year.end").create({
    "date": "2024-12-31",
    "journal_id": closing_journal_id,
})

result = get_model("year.end").create_entry([wiz_id])
# Previous entry voided, new entry created

Year-End Closing Flow¶

1. Configure Settings
   │
   ├─ retained_earnings_account_id
   ├─ year_end_month / year_end_day
   └─ year_end_track_id (optional)
   │
2. Run Year-End Wizard
   │
   ├─ Select/confirm closing date
   └─ Select closing journal
   │
3. System Creates Closing Entry
   │
   ├─ Debit revenue accounts
   ├─ Credit expense accounts
   └─ Debit/Credit retained earnings (net)
   │
4. Entry Posted
   │
5. Income/Expense accounts show zero balance

Journal Entry Structure¶

Year-End Closing Entry (example):
─────────────────────────────────────────────
Description: Year-end closing entry for 2024

  Sales Revenue              Dr  1,000,000
  Other Income               Dr     50,000
  Cost of Sales                  Cr   600,000
  Operating Expenses             Cr   300,000
  Other Expenses                 Cr    50,000
  Retained Earnings              Cr   100,000
─────────────────────────────────────────────
  Net Income transferred to Retained Earnings

Best Practices¶

1. Verify Before Closing¶

# Run trial balance first
# Ensure all reconciliations complete
# Review account balances

2. Use Dedicated Journal¶

# Create specific journal for year-end
# Makes entries easy to identify

3. Document Closing Date¶

# Configure year_end_month/day in Settings
# Ensures consistent closing dates

Troubleshooting¶

"Retained earnings account not found"¶

Cause: retained_earnings_account_id not set in Settings Solution: Configure retained earnings account in Settings

"Failed to generate journal number"¶

Cause: Journal sequence not configured Solution: Check journal sequence settings

"Entry already exists"¶

Cause: Normal - system voids and replaces Solution: Previous entry automatically voided

Testing Examples¶

Unit Test: Year-End Entry¶

def test_year_end_entry():
    # Create test accounts with balances
    # ...

    # Run year-end wizard
    wiz_id = get_model("year.end").create({
        "date": "2024-12-31",
        "journal_id": journal_id,
    })

    result = get_model("year.end").create_entry([wiz_id])

    # Verify entry created
    move_id = result["next"]["active_id"]
    move = get_model("account.move").browse([move_id])[0]
    assert move.state == "posted"

    # Verify income/expense accounts zeroed
    # ...

Security Considerations¶

Permission Model¶

Restricted to accounting administrators
Year-end close is critical operation

Audit Trail¶

Journal entry provides audit trail
Void of previous entry logged

Configuration Requirements¶

Setting	Location	Description
`retained_earnings_account_id`	Settings	Target equity account
`year_end_month`	Settings	Closing month (1-12)
`year_end_day`	Settings	Closing day (1-31)
`year_end_track_id`	Settings	Optional tracking
`year_end_track2_id`	Settings	Optional tracking 2

Version History¶

Last Updated: December 2024 Model Version: year_end.py Framework: Netforce

Additional Resources¶

Journal Entry Documentation: account.move
Account Documentation: account.account
Settings Documentation: settings

This documentation is generated for developer onboarding and reference purposes.