[{"data":1,"prerenderedAt":31},["ShallowReactive",2],{"content:en:glosario:closing-entry":3},{"frontmatter":4,"html":27,"locale":28,"section":29,"slug":30},{"id":5,"title":6,"description":7,"h1":8,"keyword":9,"date":10,"updated":10,"author":11,"schemaType":12,"draft":13,"cta":14,"faq":15,"related":22},"asiento-de-cierre","Closing entry: what it is and example · Fibady","The closing entry zeroes out revenue and expense accounts at year end and transfers the result to equity, so the next year starts from zero.","Closing entry","closing entry","2026-09-03","santi","DefinedTerm",false,"See how Fibady calculates it in a demo",[16,19],{"q":17,"a":18},"Is a closing entry the same as a closing adjustment?","No. Closing adjustments (accruals, depreciation, provisions) are booked before; the closing entry is the last one and only transfers the result.",{"q":20,"a":21},"How often is it done?","Once per financial year in statutory accounting. In management reporting the result is calculated monthly without closing any accounts.",[23,24,25,26],"\u002Fglossary\u002Fgeneral-journal","\u002Fglossary\u002Ffinancial-consolidation","\u002Fglossary\u002Febitda","\u002Fproduct\u002Ffinancial-reporting","\u003Cp>The closing entry is the accounting posting that, at the end of the financial year, zeroes out all revenue and expense accounts and transfers the year's result to equity, so the next year starts with the P&L at zero.\u003C\u002Fp>\n\u003Ch2 id=\"what-it-includes\">What it includes\u003C\u002Fh2>\n\u003Cp>A debit for the balance of each revenue account and a credit for the balance of each expense account, with the difference posted to the result for the year. Before it come the adjusting entries: depreciation, provisions, accruals and inventory changes.\u003C\u002Fp>\n\u003Ch2 id=\"example-with-numbers\">Example with numbers\u003C\u002Fh2>\n\u003Cp>At 31 December, revenue accounts total 2,000,000 and expense accounts 1,850,000. The closing entry debits 2,000,000 to revenue, credits 1,850,000 to expenses and credits 150,000 to result for the year. On 1 January the P&L is at zero and the balance sheet shows 150,000 more equity.\u003C\u002Fp>\n\u003Ch2 id=\"how-fibady-does-it\">How Fibady does it\u003C\u002Fh2>\n\u003Cp>Fibady does not post entries: each entity's ERP makes the closing entry. What Fibady does is read it along with the rest of the general journal and exclude it from the management P&L, so the consolidated December result does not show as zero because of the close.\u003C\u002Fp>\n","en","glosario","closing-entry",1788520147788]