What is the impact of marking a General Ledger account inactive?

If a GL account is marked inactive for the year, it will still act the same as any active account, and you can post entries to it (you will just receive a warning).

• During the End of Year Closing process, if the inactive account has no ending balance, the account will not be created in the new year. 
• If there is an ending balance, the account will be created in the new year, even though it was marked inactive in the old.
• If the account has already been created in the new year (a previous running of the End of Year Closing process before it was marked inactive), marking it inactive in the old year and rerunning End of Year Closing will remove it unless it is a Fund Balance account or will need to carry a balance forward.  Fund Balance accounts have to be manually deleted by clicking the X on the toolbar.

Note: When a Fund is successfully retired, all accounts in the current and future years are marked inactive for you.  Refer to Retiring a Fund for more information.