Which Year-End Method Does Your Company Use to Close Out P&L Account Balances?

If your company uses the Oracle EBS R12 or 11i G/L, do you close out year-end Revenue and Expense account balances by creating a journal entry using the Create Income Statement Closing Journals request?

Or do you use the other option: Simply open the first G/L period of the new year and the Oracle G/L will zero out the new year's beginning balances for the Revenue and Expense accounts, mysteriously moving the net balance to the default Retained Earnings account for the ledger / set of books?

If you are not sure what your company does, but you have at least G/L inquiry or view-only access, try this: Search for prior-year journals with source of 'Closing Journal' or category of 'Income Statement Close'. If you find such journals, then your organization most likely runs the Create Income Statement Closing Journals request.