Microsoft Dynamics 365 Business Central (formerly know as Dynamics NAV) has a three steps Fiscal Year End closing procedure. Once the closing procedure has been completed, you may still record new GL transaction into the closed Fiscal Year, however, and Profit & Loss items will cause you to re-close the Fiscal year to retained earnings. For assistance with this process, please feel free to contact our Consulting Team at Tel. (855) 227-0700 or via e-mail at Sales@CBRTechnology.com .
Why do I need to Close my Year ? If you fail to close you last Fiscal Year, the system Balance Sheet report wand the Statement of Retained Earnings will be incorrect . Specifically, the Retained Earning Account and the Net Income (Current Year) portion will display a cumulative total for multiple Fiscal Years.
Can I undo the Fiscal Year-End Closing ? In the accounting period setup, the close function cannot be undone. However, when you run the "Close Income Statement" routine, the system will simply prepare the proper GL Journal Entry. You still can review this entry and decided to delete it. These special entries are marked with a "C" on the left hand-side of the Date to indicate a CLOSING entry. Once you post this special General Ledger Journal Entry you cannot undo this process.
What if my CPA has not completed their Review or Audit Entries yet ? Business Central allows you to execute the Year-End Closing procedures multiple times after additional entries are posted to prior years. Once the CPA complete their work and provide you with final audit adjustments, you simply record them in Business Central and re-close the proepr years. This can even occur over multiple Fiscal Years. Obviously, this would only be an issues if the Audit entries are related to Profit & Loss accounts.
Please note that ONCE you post the year-end closing entries in Business Central, this process cannot be reversed. We typically recommend that you prepare a COPY of your production company file. Also, if this is the first time you are completing this process, you might want to test it in your Sandbox copy.
If you are using Dimensions in your setup, please make sure to complete the proper section of the “Close Income Statement” wizard in accordance with your setup.
Use the Accounting Periods Setup page to CLOSE the Fiscal Year
Use the “Close Income Statement” to prepare a GL Journal entry by Dimension (i.a.)
Post the General Ledger Journal Batch with the YE Closing Entries after Review
Our Consulting Team is ready to assist. Please give us a call at Tel. 855-227-0700 !!!