Closing the Fiscal Year NORRIQ Belgium Date: 08/12/ Contact the NORRIQ service desk for additional assistance: servicedesk@norriq.be or +32 16 498 111 Index
1 Year end closing 3 1.1 Opening a new fiscal year 3 1.2 Closing an old fiscal year 4 1.3 Closing the income statement accounts 5 1.4 Creating new number series 6 9/09/ 1
1 Year end closing 1.1 Opening a new fiscal year Before we are able to close a financial year, we must first create a new fiscal year. Departments > Financial Managment > Periodic activities > Fiscal year > Accounting periods On the home fast tab, click Create Year In this screen, we can decide how to format our financial year. We enter the starting date, the number of periods and the length of the period. 9/09/ 3
We can create as many fiscal years as we want. Every click on the Create Year button creates a new year that we can use to post to. The number of the periods and the length of the period that must be configured when a new financial year is created do NOT have anything to do with the VAT. In fact, if we were to take 4 periods with a length of 3 months (VAT quarter), it would no longer be possible to do the bookkeeping month by month. Therefore, we advise always using a period length of 1 month. If we want to create an extended or shortened financial year, we can do that easily just by adjusting the number of periods. 1.2 Closing a fiscal year Once a new financial year has been created, we can close the previous one. Departments > Financial Managment > Periodic activities > Fiscal year > Accounting periods On the home fast tab, click Close Year Microsoft Dynamics NAV automatically searches for the oldest financial year that has not been closed and closes it. It will then no longer be possible to make changes to the closed periods (closed blocked). However entries can still be made in a closed period. To prevent entries still being made in the previous fiscal year, you can check the manual Block Accounting Periods UK NAV. 9/09/ 4
1.3 Closing the income statement accounts After a financial year has been closed in Microsoft Dynamics NAV, there is essentially nothing changed from an accounting perspective. The balance and profit-and-loss account for the new fiscal year will look exactly the same as the old one did. We first have to set the profit and loss account to zero through the batch process Close Income Statement Departments > Financial Management > Periodic activities > Fiscal year > Close Income Statement Via the settings in the Financial module, we can create a separate journal template, with associated batch and number sequences, that the closing entries will be written to. If you are using analytical dimensions, we recommend closing analytically; in other words, that you click on the Assist edit button in the 'Dimensions' field to be able to click what dimensions you want to use to close. This batch prepares the entries in this separate journal and they have to be posted. If they are not OK, you can delete the lines here and start again. Be careful not to run the batch several times by accident without first deleting the lines in the journal, otherwise the lines will also appear in the journal several times. It will only be final when the journal has been posted. After closing the P&L account, we can still enter transactions in the closed financial year. Closing the P&L account can be done several times. The P&L accounts will be balanced every time and the balance is transferred to the carried forward P&L account that we indicated in the batch screen. The system puts a C before the date (=Closing Date) for these closing entries. 9/09/ 5
1.4 Creating new number series It s possible that we still have to create certain new number series for the new fiscal year and close the number sequence from the previous fiscal year. Preparing a new number series is done via: Departments > Financial Management > Setup > Administration > No. Series For certain journal used, we must change the related number series. You have to click on Series Lines. Then we must add a line with the first day of the financial year and the correct starting number for the starting date. When all of the documents for the previous financial year have been entered, we can close the old number sequence. Closing a number series is done via the same screen. To do that, we copy the document number from the Last No. Used column into the Ending No. column. We then see the following screen: 9/09/ 6
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