--- title: "Clearing balances in P&L accounts down to zero at year end" slug: "year-end-cleardown" updated: 2025-08-21T11:25:27Z published: 2025-08-21T11:25:27Z canonical: "support.lusid.com/year-end-cleardown" --- > ## Documentation Index > Fetch the complete documentation index at: https://support.lusid.com/llms.txt > Use this file to discover all available pages before exploring further. # Clearing balances in P&L accounts down to zero at year end You can designate a valuation point (marking the end of an accounting period) as ‘end of year’ and transfer balances in particular accounts to other accounts for the start of the next period. This feature is designed to set P&L accounts to zero at year end so LUSID can calculate accurate year-to-date P&L figures for the subsequent year. To do this, you must first: 1. [Add a cleardown module](/v1/docs/how-do-i-add-a-cleardown-module-with-cleardown-rules-to-a-chart-of-accounts) to your chart of accounts (CoA) with at least one cleardown rule specifying the account(s) to transfer from and to. 2. [Apply the code of the cleardown module](/v1/docs/how-do-i-create-a-fund#understanding-nav-types) to each NAV type in your fund. 3. Create a valuation point with cleardown enabled (see below) ## Creating a valuation point with cleardown enabled To do this in the LUSID web app, navigate to **Fund Accounting > Calendar Management**, select a fund, click **Create valuation point** and enable **Apply cleardown**: ![](https://cdn.document360.io/d575ad81-c0ed-4980-bbd1-d59ac5c3de82/Images/Documentation/image-ZESV8SSG.png) Alternatively, call the [UpsertDiaryEntryTypeValuationPoint](https://www.lusid.com/docs/api/lusid/endpoints/funds/UpsertDiaryEntryTypeValuationPoint) API and set `applyClearDown` to `true`, for example: ```json curl -X POST 'https://.lusid.com/api/api/funds/MyFunds/Growth/valuationpoints?navTypeCode=OFFICIAL'  -H 'Content-Type: application/json-patch+json'  -H 'Authorization: Bearer '  -d '{  "diaryEntryCode": "31Jan2025",  "name": "End January 2025",  "effectiveAt": "2024-01-31T17:00:00.0000000+00:00",  "queryAsAt": "2024-01-31T19:59:59.0000000+00:00",  "applyClearDown": true }' ``` ## Example: Closing the December period with cleardown Imagine we have a GBP-denominated transaction portfolio holding UK equities, and a [chart of accounts](/v1/docs/how-do-i-create-a-chart-of-accounts) with the following general ledger accounts: ![](https://cdn.document360.io/d575ad81-c0ed-4980-bbd1-d59ac5c3de82/Images/Documentation/814d338c-ccec-4adb-95bf-9d973bbdf2fa.png) We can call the [GetCleardownModule](https://www.lusid.com/docs/api#operation/GetCleardownModule) API to see that the CoA has a single cleardown module with a single cleardown rule transfering balances in revenue, expense and income-type accounts to the `5-YearEnd` account: ```json {  "cleardownModuleCode": "Cleardown",  "chartOfAccountsId": {    "scope": "Fund",    "code": "Standard"  },  "displayName": "CleardownModule",  "rules": [    {      "ruleId": "Rule001",      "generalLedgerAccountCode": "5-YearEnd",      "ruleFilter": "Account.Type in 'Revenue','Expense','Income'"    }  ],  ... } ``` ### 15 December 2023 Our first trade is a purchase of 100 BP shares @ £10 per share = £1,000, trading and settling on 15 December for simplicity. We can call the [GetTrialBalance](https://www.lusid.com/docs/api#operation/GetTrialBalance) API from portfolio inception to 15 December to provide an accounting view of activity to date: ![](https://cdn.document360.io/d575ad81-c0ed-4980-bbd1-d59ac5c3de82/Images/Documentation/8492cecf-b7ea-49b7-ab66-81e870d1207e.png) ### 31 December 2023 There are no more transactions in December. When we call the `GetTrialBalance` API from portfolio inception to the end of December we see an unrealised gain of £100 has been posted to the `4-PnL` account, reflecting a movement in the BP share price in our favor from £10 to £11 (highlighted in red below): ![](https://cdn.document360.io/d575ad81-c0ed-4980-bbd1-d59ac5c3de82/Images/Documentation/24cd5845-98a4-40cc-af43-e1376e0f06ad.png) ### 2 January 2024 At EOD on 2 January we call the [GetValuationPointData](https://www.lusid.com/docs/api/lusid/endpoints/funds/GetValuationPointData) API to strike an estimate NAV and then the [AcceptEstimateValuationPoint](https://www.lusid.com/docs/api/lusid/endpoints/funds/AcceptEstimateValuationPoint) API to formally close the December 2023 period. [More on publishing an official fund valuation](/v1/docs/valuing-a-fund-calculating-gav-nav-and-other-pricing-data). A valuation point must have a status of `Final` in order for LUSID to apply cleardown to the subsequent period. ### 3 January 2024 At SOD on 3 January we call the `GetTrialBalance` API from 1 January to 3 January, using the unique code of the closed December 2023 period as the start date. We can see that: - The £100 balance in the `4-PnL` account from 31 December has been transferred to the `5-YearEnd` account (highlighted in green below). - The `4-PnL` account has an opening balance on 1 January of zero, and a closing balance on 3 January of £50, reflecting a further movement in the BP share price in our favor from £11 to £11.50 (highlighted in red). In other words, with cleardown applied the year-to-date P&L for 2024 is £50, not £150: ![](https://cdn.document360.io/d575ad81-c0ed-4980-bbd1-d59ac5c3de82/Images/Documentation/39a2ba24-f36f-4e52-863c-b5d1ddcc1e5f.png) > **Note**: LUSID does not currently generate [journal entry lines](/v1/docs/how-does-lusid-generate-journal-entry-lines-from-economic-activity) for this transfer. This may change in future. We can confirm that year-to-date P&L without cleardown applied would erroneously be £150 by calling the `GetTrialBalance` API for the same period with the `excludeCleardownModule` option set to `True` in the API request. The `5-YearEnd` account, meanwhile, is empty and therefore unreported: ![](https://cdn.document360.io/d575ad81-c0ed-4980-bbd1-d59ac5c3de82/Images/Documentation/0c738bdd-bb05-43e6-bbaf-3bb79dba1b4a.png)