YEAR END CLOSE. A guide to closing the year using NAV2013 R2

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George Flowers
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1 YEAR END CLOSE A guide to closing the year using NAV2013 R2

2 My name is Michael Carr CPA and I am Vice President, Finance of Philadelphia Scientific LLC a small family owned light manufacturer and designer of Industrial Forklift Battery Maintenance products and systems. I have Thirty plus years in Manufacturing Accounting and financial statement preparation. Disclosure : Philadelphia Scientific went live on NAV in February so I have actually never closed an actual year under NAV. WHO AM I?

3 Procedures to close and post all system activities. Execution of Nav 2013 R2 procedures TWO COMPONENTS OF YEAR END CLOSING

4 Cash Receivables Inventory Fixed Assets Payables Payroll Journal Entries General accruals PROCEDURES TO CLOSEOUT ALL PROCESSES

5 All Deposits should be posted and all reconciliations completed Make sure that all Payment Journals have been posted CASH

6 Ascertain all shipments and invoices are posted based on the revenue recognition principals used by your company and industry Tie out your Aged Trial Balance to your General Ledger RECEIVABLES

7 Make certain all journals and adjustments have been posted. Depending on your costing choices run adjust costs, make journal entries to accrue receipts, etc. Run Inventory Valuation Report and Reconcile Inventory to GL and compare and adjust if necessary INVENTORY

8 Make sure all payment and Purchase Journals are posted Make sure all uninvoiced purchase receipts are posted Run Vendor Trial Balance, Aged Accounts Payable and Reconcile to GL and agree balances to the General Ledger. PAYABLES

9 Make sure all batches are posted. Proper accruals and assets are included such as: Payroll tax accruals Assets received not invoiced All in progress projects are capitalized. FIXED ASSETS, PAYROLL, AND JOURNAL ENTRIES

10 There are frequently may special entries made at the end of the year to conform to GAAP that are not included in monthly statement but must be made at the end of the year This may include: Commitments and Contingencies Pension Cost adjustments Adjustments for Income Taxes Discontinued Operations Etc.,Etc.,Etc. ( apologies to Yul Brynner). GENERAL ACCRUALS

11 >Purpose of Year End Closing : To Calculate and post Retained Earnings for the year to the Balance Sheet Equity Accounts >In essence it creates a journal entry(ies) to close out all P&L accounts and posts the offsetting entry(ies) to the equity account(s) as configured.

14 Before closing the fiscal year ---make certain the new year is open. However Nav DOES require that you do so. if you don t a warning box comes up Use the process Create year if it s not already open.

15 Steps to close General Ledger and open the Current Year Close Last year In Account Periods window choose the Close Year Process

16 You will receive a warning box to make sure you want to close the year and a warning it cannot be reopened Although you cannot reopen it ----you may enter adjusting entries ( i.e. post audit) and rerun the closing ENTRY process to post the new entries forward from the old year to the new year.

17 Go to the Close Income Statement task

Fiscal Year ending Date : Last date of the year to be closed General Journal Template: Choose whatever you want to use good idea to use your standard unless you know why to use another.

18 Fiscal Year ending Date : Last date of the year to be closed General Journal Template: Choose whatever you want to use good idea to use your standard unless you know why to use another. General Journal Batch : Name the Batch Document Number Retained Earning Account: your Balance sheet account for Historical Retained earning for the offset post. Posting Description Close By: Not required. It will create a single entry by each account by default. If you do P&L reporting by business unit and/or dimension you will likely want to choose to close by business unit or dimensions this is where you choose.

19 Posting the Year end closing Journal Entry: After running the Batch Job you still need to post the resulting entry it creates. Review the entry and remove any blank lines that may exist. Post the closing entry

20 Discussion and questions? Thanks for coming. Additional Demonstrations available on You Tube : Alex Chow s Two Minute drill BDO Solutions 6 Minute YouTube OmniVue s 2014 Nav Year End Closing You Tube

This module explains the setup of the General Ledger and of the Accounting Periods. Lessons

MICROSOFT DYNAMICS NAV COURSE OUTLINE 1) MICROSOFT DYNAMICS NAV Course Details Course Outline Module 1: Finance Management Setup This module explains the setup of the General Ledger and of the Accounting