Year End Closing/Profit Transfer

How do I do a year end closing/profit transfer?

The Year End closing procedure in Tourplan is relatively straight forward: you only need to run the Profit Transfer in the Accounting application to transfer the Profit or Loss balance in the year to a Retained Earnings account.

The system will save a Journal once the Profit Transfer is processed and when all the Revenue and Expenses balance for the financial year end. For example 202412 will be transferred over to Retained Earnings; the Profit and Loss will then start afresh in the new financial year 2025.

Always ensure that all the AR, AP and GL tally within the month end, and that the financial reports are in order before closing a month. There isn't much adjustment needed for the year end closing except an auditor adjustment after the company account has been audited.

It is common for the auditing process to be completed a few months after the Financial year end. You can opt to close the month end as usual and only process the Profit Transfer after the audit adjustment.  You may raise a support ticket to your Tourplan local support team to request the reopening of a GL Period e.g. 202401, and follow the steps below for Profit Transfer.

Example: Financial Year (January 2024 - December 2024)

1. Complete the month end closing for December 2024 and make sure all AR, AP and GL for the period 202412 are Closed and Locked.

2. Proceed to Financials > Accounting > General Ledger > Profit Transfer.

3. Fill in the parameters accordingly:

   • At Year End = 2024

   • Journal Date = 01/01/2025 (Period 202501)

   • Branch + Department + Account = Your Retain Earnings Account (For Branch IB)

4. Click Ok.

5. Click Save.

6. For checking purposes - you can repeat the same steps in 2, 3, and 4 again once the Profit Transfer is saved, you should notice system message "No Journal Lines Found" is generated.

NOTE: For a multi-company system, you may need to run the Profit Transfer for each Branch respectively.