Hi,

In Odoo’s accounting module this is handled automatically using built‑in structures rather than manual “off‑balance‑sheet” accounts.

Odoo Handles Year‐End Profit or Loss by following methods.

1- Odoo creates an auto‑account named “Undistributed Profit/Loss”.

This is a temporary account of type Current Year Earnings (CYE). It holds the net result (profit or loss) of the current period until allocation.

2-Odoo does not allow you to define arbitrary “temp accounts” in journal entries. Instead, the system automatically collects the profit & loss result in that Undistributed Profit/Loss account until you post your closing entry.

3- Closing entry: allocate earnings to Retained Earnings.

At year‑end or at the start of the new fiscal year you create a manual journal entry:

* If you had a loss: debit the Retained Earnings account, credit Undistributed Profit/Loss

* If you had a profit: debit Undistributed Profit/Loss, credit Retained Earnings

Use the journal type Current Year Earnings. This clears out the suspense account and moves the balance to the equity account without affecting P&L detail

4- Lock the year to prevent back‑dating

For more about the accounting report, please go through the following.

-https://www.youtube.com/watch?v=DsLUI3h2EVI

- https://www.odoo.com/documentation/18.0/applications/finance/accounting/reporting/year_end.html

- https://www.odoo.com/sl_SI/forum/pomoc-1/accounting-what-is-the-process-for-year-end-closing-250266

Hope it helps