12 Feb Closing accounting period in Dynamics 365 Business Central
At the end of a fiscal year, there are different administrative tasks that you must perform, such as making sure that all documents and journals have been published, currency data has been updated, books are closed, etc. The actual tasks will depend on your company.
Also the period in which you do them, since we know that many companies do not carry out the accounting closing until well into a few months of the following year . Despite this, we want to provide you in this article the detailed steps to perform the accounting closing in Dynamics 365 Business Central / Dynamics NAV.
Before proceeding at the end of the year, it is necessary to have made all the entries prior to the accounting closing such as the accruals of expenses and income, amortizations, changes in stocks and adjustments of foreign exchange. These processes can be done manually or using the corresponding options provided by Business Central .
Once all these entries have been made we will be able to make the regularization entry, which will settle the commercial accounts (group 6 and 7) and take the difference to the Cta. of regularization.
Closing exercise step by step
- Currency Adjustment
From the Finance menu we must access acceder “Adjust exchange rate”.
We will indicate the initial and final date of the adjustment period, the closing date of the fiscal year and the document number. You do not need to filter by currency as you must adjust them all.
- Stock adjustment
To make the adjustment of stocks you will first have to close the last inventory period pending closing. If your inventory periods are monthly, you must close the one corresponding to the last month.
First go to the search icon and look for “accounting periods”
To close an Inventory Period, it is essential that you have valued the product movements of that period with the Valuate Stock: movs process. Product.
You have to keep in mind that when closes an inventory period, it is no longer possible to record more changes in its valuation before the end date , whether expected or billed , nor can new values be recorded in the inventory before that date. If there are open product movements in a closed period, which means that there are positive amounts that have not yet been subtracted (or liquidated) from outbound transactions, you can continue to settle outbound amounts to those movements, even if the period is closed.
Closing the Inventory Periods is the previous step to be able to execute the process of Registering the stocks in Accounting.
- Set closure
We must mark the periods corresponding to the fiscal year that we want to close as closed. Dynamics 365 Business Central will mark all periods of the first fiscal year pending closing as Closed and Initial date blocked.
Once the closure is fixed, it is no longer possible to modify the structure of the periods.
The system will consider that you have to close the oldest fiscal year that presents the unchecked “closed” box.
- Accounting regularization entry (Close Income Statement)
To make the regularization accounting entry we must access:
You should keep in mind that you will only report the Close by Code field. company if you are closing a consolidated company.
If we want the balances of the accounts to remain at 0 by dimensions, we will have to mark for what dimensions the balance should remain at 0.
- Renumber Entries
To print the official listings it will be necessary to renumber the entries. From this moment, it is possible to print the official reports and we can close the exercise.
Restrict new entries
If we want to prevent anyone from entering entries in a closed year, it will be necessary to restrict the possibility of registering on those dates. Remember that you can define restrictions for each user from the User Configuration page.
User settings: have priority over accounting settings. For example, while the general configuration allows users to register in the current month, the user configuration may allow the accountant to continue registering in the previous month to create entries for the closing of the month.
If users do not have informed registration dates in their configuration, the limitation will be marked by the permitted registration dates that have been established in the accounting configuration.
Accounting settings: In the Allow registration from and Allow registration to fields on the Accounting configuration page, you can specify a range in which registration is allowed.
Perform closed exercise entry
Surely it will have happened to you more than once. Did you think you had successfully closed the year in Dynamics NAV but discover that there is a change you must make? Do you carry out an audit and do you need to introduce new entries in an exercise already closed at Business Central?
Next, we will explain how to make an entry in a previously closed exercise.
- It will be possible to do so by removing the restriction of dates explained above and taking into account that if the entry entered affects any commercial account, you will have to make the regularization entry again.
- This will generate a new regularization entry for the outstanding amount.
- Then you must perform the renumbering of entries and the reprinting of official reports.
- If, on the contrary, the entry entered does not affect commercial accounts, it will only be necessary to perform the renumbering of entries and the reprinting of official reports.
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