It is not necessary for closing journal entries to be physically made in the system. Instead, the net surplus/deficit for the fiscal year rolls into the designated fund balance account(s) ( Version 7 ) automatically between the last day of the fiscal year and the first day of the next fiscal year, and the beginning balance of the income statement accounts are reset to zero.

For information on which account categories are closed into net surplus/deficit, refer to What are the account categories, their normal balances, and how do they affect financial statements?

For more information, review: