close

(equity)

Generate transactions which transfer account balances to and/or from
another account (typically equity). This can be useful for migrating
balances to a new journal file, or for merging earnings into equity at
end of accounting period.

By default, it prints a transaction that zeroes out ALE accounts (asset,
liability, equity accounts; this requires account types to be
configured); or if ACCTQUERY is provided, the accounts matched by that.

(experimental)

_FLAGS

This command has four main modes, corresponding to the most common use
cases:

1.  With --close (default), it prints a "closing balances" transaction
    that zeroes out ALE (asset, liability, equity) accounts by default
    (this requires account types to be inferred or declared); or, the
    accounts matched by the provided ACCTQUERY arguments.

2.  With --open, it prints an opposite "opening balances" transaction
    that restores those balances from zero. This is similar to Ledger's
    equity command.

3.  With --migrate, it prints both the closing and opening transactions.
    This is the preferred way to migrate balances to a new file: run
    hledger close --migrate, add the closing transaction at the end of
    the old file, and add the opening transaction at the start of the
    new file. The matching closing/opening transactions cancel each
    other out, preserving correct balances during multi-file reporting.

4.  With --retain, it prints a "retain earnings" transaction that
    transfers RX (revenue and expense) balances to
    equity:retained earnings. Businesses traditionally do this at the
    end of each accounting period; it is less necessary with
    computer-based accounting, but it could still be useful if you want
    to see the accounting equation (A=L+E) satisfied.

In all modes, the defaults can be overridden:

-   the transaction descriptions can be changed with --close-desc=DESC
    and --open-desc=DESC
-   the account to transfer to/from can be changed with
    --close-acct=ACCT and --open-acct=ACCT
-   the accounts to be closed/opened can be changed with ACCTQUERY
    (account query arguments).
-   the closing/opening dates can be changed with -e DATE (a report end
    date)

By default just one destination/source posting will be used, with its
amount left implicit. With --x/--explicit, the amount will be shown
explicitly, and if it involves multiple commodities, a separate posting
will be generated for each of them (similar to print -x).

With --show-costs, any amount costs are shown, with separate postings
for each cost. This is currently the best way to view investment lots.
If you have many currency conversion or investment transactions, it can
generate very large journal entries.

With --interleaved, each individual transfer is shown with source and
destination postings next to each other. This could be useful for
troubleshooting.

The default closing date is yesterday, or the journal's end date,
whichever is later. You can change this by specifying a report end date
with -e. The last day of the report period will be the closing date, eg
-e 2024 means "close on 2023-12-31". The opening date is always the day
after the closing date.

close and balance assertions

Balance assertions will be generated, verifying that the accounts have
been reset to zero (and then restored to their previous balances, if
there is an opening transaction).

These provide useful error checking, but you can ignore them temporarily
with -I, or remove them if you prefer.

You probably should avoid filtering transactions by status or realness
(-C, -R, status:), or generating postings (--auto), with this command,
since the balance assertions would depend on these.

Note custom posting dates spanning the file boundary will disrupt the
balance assertions:

2023-12-30 a purchase made in december, cleared in january
    expenses:food          5
    assets:bank:checking  -5  ; date: 2023-01-02

To solve that you can transfer the money to and from a temporary
account, in effect splitting the multi-day transaction into two
single-day transactions:

; in 2022.journal:
2022-12-30 a purchase made in december, cleared in january
    expenses:food          5
    equity:pending        -5

; in 2023.journal:
2023-01-02 last year's transaction cleared
    equity:pending         5 = 0
    assets:bank:checking  -5

Example: retain earnings

Record 2022's revenues/expenses as retained earnings on 2022-12-31,
appending the generated transaction to the journal:

$ hledger close --retain -f 2022.journal -p 2022 >> 2022.journal

Note 2022's income statement will now show only zeroes, because revenues
and expenses have been moved entirely to equity. To see them again, you
could exclude the retain transaction:

$ hledger -f 2022.journal is not:desc:'retain earnings'

Example: migrate balances to a new file

Close assets/liabilities/equity on 2022-12-31 and re-open them on
2023-01-01:

$ hledger close --migrate -f 2022.journal -p 2022
# copy/paste the closing transaction to the end of 2022.journal
# copy/paste the opening transaction to the start of 2023.journal

Now 2022's balance sheet will show only zeroes, indicating a balanced
accounting equation. (Unless you are using @/@@ notation - in that case,
try adding --infer-equity.) To see the end-of-year balances again, you
could exclude the closing transaction:

$ hledger -f 2022.journal bs not:desc:'closing balances'

Example: excluding closing/opening transactions

When combining many files for multi-year reports, the closing/opening
transactions cause some noise in transaction-oriented reports like print
and register. You can exclude them as shown above, but not:desc:... is
not ideal as it depends on consistent descriptions; also you will want
to avoid excluding the very first opening transaction, which could be
awkward. Here is one alternative, using tags:

Add clopen: tags to all opening/closing balances transactions except the
first, like this:

; 2021.journal
2021-06-01 first opening balances
...
2021-12-31 closing balances  ; clopen:2022
...

; 2022.journal
2022-01-01 opening balances  ; clopen:2022
...
2022-12-31 closing balances  ; clopen:2023
...

; 2023.journal
2023-01-01 opening balances  ; clopen:2023
...

Now, assuming a combined journal like:

; all.journal
include 2021.journal
include 2022.journal
include 2023.journal

The clopen: tag can exclude all but the first opening transaction. To
show a clean multi-year checking register:

$ hledger -f all.journal areg checking not:tag:clopen

And the year values allow more precision. To show 2022's year-end
balance sheet:

$ hledger -f all.journal bs -e2023 not:tag:clopen=2023
