Understanding interim and year-end closing
Closing is an important process in the accounting calendar of an organization. Before discussing how PeopleSoft handles this function, we'll spend some time in understanding this important accounting concept.
All accounts are categorized based on the financial statement they appear on. Thus all Revenue and Expense accounts are called Profit and Loss Accounts, as they appear on the Profit and Loss statement, while Asset, Liability, and Equity accounts are known as Balance Sheet Accounts.
While the profit and loss statement, also known as the Income Statement, shows an organization's revenue and expense status at a particular moment in time, the balance sheet shows the accumulated balance of its assets, ...