Microsoft Dynamics NAV 2015: How to Run the Close Year End Process
In Microsoft Dynamics NAV 2015, the Close Income Statement batch job transfers the year’s results to a Retained Earning account in the balance sheet and closes all of the income statement accounts. This process creates a journal, which is posted manually. When an additional reporting currency is used, the system will post the additional currency directly to the ledger when the “home” currency batch is posted.
In NAV, you have the ability to run the Close Income statement several times. You can also post to the previous fiscal year, even if the year has been closed, if you rerun the batch job. When the journal is created, it posts with a “C” in front of the date, for example: C12312015
1. Go to Departments > Financial Management > Periodic Activities > Fiscal Year, or in the Search box, enter Fiscal Year, and then choose the related link. NOTE: The fiscal year must be closed before you can run the close income statement.
2. In the Fiscal Year window, select Accounting Periods, on the ribbon select Close Year.
Figure 1. Accounting Periods.
Once you have selected Close Year, a message will pop up asking if you want to close the fiscal year listed (all of the prior years should have already been closed). Select YES.
Figure 2. Pop-up confirming close of fiscal year.
3. Go to Departments > Financial Management > Periodic Activities > Fiscal Year, or In the Search box, enter Fiscal Year, and then choose the related link.
4. In the Fiscal Year window, select Close Income Statement. In the Options box that pops up, complete each line as necessary:
Fiscal Year Ending Date – Will populate with the date of the close fiscal year
Gen. Journal Template – Click on the down arrow and select from list; usually the selection would be “General”
Gen. Journal Batch – Click on the down arrow and select from the list; you have the ability to create a new batch if you choose. Common practice is to have a batch for year-end close (YE)
Document No. – Should populate automatically if you selected a No. series in the Gen. Journal Batch setup window
Retained Earnings Acc. – Select the retained earnings account to which you want to close the fiscal year
Posting Description – Default text is close income statement (can be changed if you choose)
Close By
Business unit code – You will only check this box if you are in the consolidation company and want to close by business unit for the income statement. NOTE: When closing by business unit, each income statement account is closed by business unit but the retained earnings account is closed by the company
Dimensions – Click the …. and select the dimension boxes you want to use for the income statement close. An entry will be created for each dimension used in the GL account. NOTE: When choosing dimensions, each income statement account is closed by the dimensions used, but the retained earnings account is closed by the company, NOT by dimension. ALSO NOTE: If you do not choose to close by dimensions or business unit, only one G/L line is created for each income statement account.
Inventory Period Closed – Check this box if you want to close the inventory periods with the ending dates equal to or prior to the last date of the accounting period to be closed when you run the batch job for close year.
5. When all of the above boxes have been filled in as necessary, click OK. The process to close the income statement will proceed.
Figure 3. Close Income Statement.
6. Go to Departments > Financial Management > General Ledger > (Tasks) General Journals, or In the Search box, enter General Journals, and then choose the related link.
7. In the General Journals window, select the Batch Name used when closing the income statement.
Figure 4. Batch Name.
8. Once you select the correct batch name, you will see a completed journal with a “C” in front of each line for the closing date. The retained earnings has been closed out as you can see from the last line in the journal. The Total Balance on the bottom right of the journal should be zero.
Figure 5. YE General Journal.
If you have any questions about this process or other accounting processes in Dynamics NAV, contact the experts at ArcherPoint.
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