02 Jan Accounting periods and exercises in Dynamics 365 Business Central

Posted at 12:37h in NAV Tips & Tricks by

The economic operations of any business must be registered in a certain period. This period is known as accounting period. As a rule, it lasts one year and runs from January 1 to December 31. Depending on the type of companies, you can work with different accounting periods such as month, semester, quarter, among others or may not coincide with the calendar year. For example, the accounting year could end on June 30 instead of December 31.

The accounting periods allow us to measure the performance of the company and buy it with other previous periods. Based on this comparison of results, information can be analyzed and economic and financial decisions made in an informed manner.

Dynamics 365 Business Central only requires accounting periods if you want to close a revenue balance or perform data comparison tasks.

Create new annual series

We will search We series in the application’s search engine.

We position ourselves on top of the series that we want to modify and click on Browse> Lines:

We will create a new line with Initial date 01-01-20xx maintaining a correct ordering:

Create block exercise in Dynamics 365 Business Central

We will look for accounting periods in the application’s search engine.

We will look for the Create exercise action:

We will have to complete the following window with the information detailed below:

In the Initial date field, we will enter the date on which the exercise will begin.

In the field No. of periods we will state the number of financial years in which the exercise will be divided. Remember that there can be up to 365 periods in a year.

In the Period length field, we will enter a duration for each period. We can use the formulas we usually use in the application such as, for example, 1M if we want to indicate a month, 1Q for a quarter and 1Y for a year.

And through this simple step, Business Central will create the accounting periods we have specified as a block.

In this screen, we can also see other information relevant to other processes, such as:

  • Initial date: Specifies the date on which the accounting period will begin. This date may be the first day of the month, although not necessarily. You can change the start date of a period manually when the Blocked Start Date box is not checked.
  • Name: Specifies the name of an accounting period. By default, the program will enter the name of the month that corresponds to the initial date.
  • New fiscal year: Specifies whether the accounting period will be used to start an exercise.
  • Closed: Specifies whether the accounting period belongs to a closed year. When you close an exercise, all periods of the year will be closed.
  • Initial date blocked: Specifies whether you can change the initial date of the accounting period. Once you have closed the year, a check mark will appear in this field for all periods of the year and the first period of the following year.
  • Closed inventory period: specifies that the inventory period with an end date equal to or greater than the end date of the accounting period is closed.

User Registration Restrictions

From this moment, depending on the date of the document to be registered, the numbering corresponding to the date you have set will be selected,
on the work date in My Settings.

Remember that, if you have activated the restriction of allowed registration dates, you may have to check them at the beginning of the new year.

If you have configured users, you can define on what dates they can register , for each user, from Users configuration:

If you don’t have users, you can restrict the allowed registration dates from Accounting Settings:

Finally, you can create a new fiscal year from Accounting Periods:

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