Let me share some insight about the entries that auto-appear in your QuickBooks Online (QBO) account, Anwar.
The System Administration user displays changes that the program performed automatically. With the closing entries, these are the journal entry form of the Statement of Retained Earnings. The reason why it appears as created by system administration is offsetting entries created by QBO.
The goal is to make the posted balance of the retained earnings account match what we reported on the statement of retained earnings. Then, it starts the next period with a zero balance for all accounts. When a new financial year starts, the program automatically adds the net income from the previous financial year to your Balance Sheet as Retained Earnings.
For detailed information about closing entries, I'd suggest contacting your accountant. You can check out this article to learn more about closing your books: Close your books in QuickBooks Online. In addition, you may check these articles to guide you reverse a journal entry and reconciling your accounts to always match your bank and credit card statements.
Keep in touch if you have any other queries about entries that QuickBooks generates automatically or any QuickBooks-related. I'll be here to help you out. You have a good one.
