Library

Closing Balances

Zero a balance and move the net amount to another balance.

Closing a ledger balance means to calculate the net balance of a balance, and credit or debit the resulting amount to zero the balance and move it to another ledger balance.

You can find the net balance of a ledger balance by viewing the balance field in its record. If it is negative, it needs a credit to zero the balance, and if it is positive, it needs a debit to zero the balance.

Consider the following balances:

To close the ledger balances above:

This will close out the ledger balances and you can prevent them from participating in any subsequent transactions.