what is this called? the yearly translation to calculate balance and adjust equity

[Zhang Weiwu]

Mike or Penny Novack wrote:
>
>>>>
>>>> So no option for "close books". Using 2.2.1 version. Is closing the
>>>> books a new feature?
>>>>     
>>> Yes, it's new.  2.2.5 is current.  You should update.
>>>
>>> -derek
>>>
>>>   
>> Oh I worry the Chinese translation did not follow up latest version.,
>> because my girlfriend who use it for her personal business doesn't speak
>> English. Maybe I should translate it. Anyway too busy.
>>
>> Thanks.
>>  
>>
> The AUTOMATED feature is new. However accountants managed to and
> reopen books back in the days books were still being kept using pen
> and ink on paper.
>
> Income and expense type accounts are "temporary" accounts of the
> fundamental type equity. You could close your books by entering two
> (split) transactions with the description "gross income for period"
> and "gross expenses for period" --- one side of the split closing all
> the income accounts (the other side increase of equity) and the other
> split closing all the expense accounts (the other side a decrease of
> equity). Or you could more closely mirror the pen and ink on paper
> days where there would be an account of type equity named "Profit and
> Loss" to which the income and expense accounts would be closed by
> individual transactions and a final transact (either net gain or net
> loss) closing Profit and Loss to equity (they did it this way because
> they did not have a "report generator" --- If you imagine what a print
> out of this "Profit and Loss" account would look like you will see
> that it IS that report).
>
> Michael
Thank you very much. It seems we do not need the automate feature - just
need to know how to do that, and you showed us how. Thanks for the
excellent explanation.

And I'll not upgrade because in Ubuntu I need to upgrade the OS to 8.04
for that. I prefer to help my girlfriend upgrade the OS when I am in
holiday. In my experience generally in IT, upgrade = trouble.

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