Hi all,
After a long time I got a time to write my blog again. However , I would like to start my new beginning from "Closing the Fiscal Year in Microsoft Dynamics NAV ".
First of all I will show you what's my agenda on this blog post.
1. Steps to close the year.
Create new fiscal year.
Close the current year.
Close income statement.
2. What happens to late entries.
Re-close the income statement and post to G/L.
3. Closing inventory period.
Now lets move to first step, which is
I . Steps to close year.
1. Create new fiscal year.
I am going to use Microsoft Dynamics NAV 2009 classic client , demo database.
Navigate : Financial Management --> General Ledger --> Periodic Activities --> Fiscal Year --> Accounting Period.
This is demo database and as u can see it was closed the year in 2011. Now we can close 2012.
but before that as our first step I will show you how to create new fiscal year.
You can create many years as u wish.
When you create new year just click Create Year.
and now you can provide parameter on Starting date, No.of periods, Period length.
As I mentioned before you can create many times as you can.
Now you can see , months are created on given year.
Ok, now we just finished creating new fiscal year. Lets move to next section "close the current year".
2. Close the current year.
Closing fiscal year is not much hard than I thought. As you can see on above screen I have already closed the year 2010 on demo database.
On the same screen there is a button called "Close Year",
Where click on Close year button, it asks permission for close year with the month range.
When you click "Yes", then the given period of months will get closed.
This is all about closing fiscal year steps. Now, we will move to final steps for closing fiscal year called "close income statement".
3. Close income statement.
As you can see on menu suit there is report called "Close Income Statement" and lets go to that report.
Lets, see what we have here,
on the top of the form, there is Fiscal year ending date. its automatically picked last closing date.
Then you can select Gen. Journal Template where you can create new template for closing fiscal year entries.
Next, you can specify Gen.Journal Batch for posting entries.
Then , you can provide document no for entries.
On next parameter, its called "Retained Earnings Acc" where you can specify balance account which you want to close the surplus in the income statement.
Click the Assit. button where u directed to G/L Account form to enter the G/L Account.
In my case there is a account called "Retained Earnings".
So I just select that account and move to next column about "Posting Description".
By default it comes like "Close Income Statement" and if needed you can change the description for posting entries.
Now let me run the report ,
Lets see the closing entries are there in my general journals.
Yes, there are closing entries in my general journal and you can check all entries and post to General Ledger.
Ok, now all the steps for closing year are discussed. Hope you are get some knowledge about this :) .
