The Microsoft Dynamics NAV year end process helps to make the closing off of your income statement a little less painful.
This blog post will run you through the basic process of running a year end in Microsoft Dynamics NAV, followed with the year close.
First up, we will need to check the already closed dates, search and open the “Accounting Periods” page and run down the list. You should see that the year just past still shows up as open, but previous years are all closed.
You also want to confirm that there are months filled in for the coming year.
Next, press the “Close Year” button at the top of the Accounting Periods Screen. This will lock the year and prepare it to be transferred to retained earnings.
Create Retained Earnings Journal:
1. Search for “Close Income Statement”.
2. On the screen that opens, check the end date of the year to be closed.
3. Fill in the template of GENERAL and the batch of DEFAULT. Check that this batch in the general journal is empty so that you don’t mix up with these new transactions.
4. Fill in the GL account number for Retained Earnings in your GL.
5. Lastly, specify any Dimensions that need to be included in the close. If you have any GL accounts set to “Dimension Mandatory” in your income statement or the retained earnings account, you will need to include that dimension in the list of close dimensions (otherwise the system will not let you post your close journal). You should also include any dimensions that you use in income statement financial reports so that the report will tie up with the new GL values.
6. Pressing the “Ok” button will create the journal.
Posting the journal:
Next, head over to the General journal and check the created journal. You should run a test report and ensure that you are happy with the retained earnings amount. Then post the journal.
Dates with a “C”:
All entries created with this batch will have a rate starting with a “C”. These show that they are closing entries and also allow financial reports to exclude the closing entries. This could allow you, for example, to run income statement reports across multiple years and exclude the closing entries.
Changing a closed year:
In some circumstances you may need to change entries in a closed year. If possible, you should post them on the first day of the new year.
If you do post to a closed period you will need to re-run the close income statement portion to transfer any balances to the retained earnings account.