What is 'closing entry' in SAP SRD-FIN-GL - FIN-General Ledger?

closing entry - Overview

• Component: SRD-FIN-GL

• Component Name: FIN-General Ledger

• Description: Journal entry created during period-end closing. Closing entries can be created manually or automatically for example, in billing runs and foreign currency remeasurement runs.

closing entry - Details

• 
  Key Concepts: 
  A closing entry is a journal entry made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts. Temporary accounts are those that are reset to zero at the beginning of each accounting period, such as revenue, expense, and dividend accounts. Permanent accounts are those that are not reset to zero at the beginning of each accounting period, such as asset, liability, and equity accounts. 
  
  How to use it: 
  In SAP SRD-FIN-GL FIN-General Ledger, closing entries are made using the Closing Entries transaction. This transaction allows you to enter the necessary journal entries to transfer the balances of temporary accounts to permanent accounts. You can also use this transaction to enter any other necessary journal entries for the end of the accounting period. 
  
  Tips & Tricks: 
  When making closing entries in SAP SRD-FIN-GL FIN-General Ledger, it is important to ensure that all temporary accounts have been reset to zero before making the closing entries. This will ensure that all balances are accurately transferred to the permanent accounts. 
  
  Related Information: 
  For more information on closing entries in SAP SRD-FIN-GL FIN-General Ledger, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SRD_FIN_GL/latest/en-US/f9f8d7a3c2b14e6f9a7d3c8b2f5e4d1a.html