What does Mock Close mean?

Mock close is the term used to refer to the rollover of the net surplus/deficit for the year into the fund balance for reporting purposes only. The mock close takes place on reports at the beginning of all new fiscal years.

Additionally, the system also mock closes the net surplus/deficit during the fiscal year. To accurately produce a Balance Sheet and Statement of Financial Position, the system must display the correct equity balances in order to do this, the software pretends that all income statement accounts have closed to the fund balance as of the report dates. The mock close is a reporting event only, no journal entries are created. 

Note: The actual closing of the net surplus/deficit does not take place until the year is hard closed .

Which reports Mock Close?

The general rule is that all reports that require a current equity balance should use the mock close.

  • All Financial Statements and Project Activity report mock close as of the report date in Accounting for Nonprofits and The Financial Edge
  • The Balance Sheet and Statement of Financial position mock close both the prior year's net surplus/deficit and the current year's net surplus/deficit as of the report date.
  • The Account Activity tab mock closes prior year's net surplus/deficit at the beginning of the fiscal year for fund balance accounts designated as closing accounts (in The Financial Edge only)
  • The General Ledger Report run for Fund Balance accounts mock closes
    • Prior year's net surplus/deficit to reflect the beginning fund balance as if the fiscal year were closed when run from the first period of the fiscal year.
    • Prior year's and current year's net surplus/deficit to reflect the beginning fund balance as if the fiscal period were closed (in The Financial Edge only)
  • The Trial Balance report mock closes prior year's net surplus/deficit at the beginning of the fiscal year for fund balance accounts designated as closing accounts