Microsoft Business Central
How To Perform Year-End Closing
As the end of the fiscal year approaches for most firms, let's have a look at the essential setup and procedures for conducting year-end activities in Microsoft Dynamics 365 Business Central. Let's use the "Accounting Periods" and the "Close Income Statement" approach on Business Central.
METHOD 1 (Accounting Periods)
STEP 1: Click on the search icon at the top right and type in “ACCOUNTING PERIODS”. A list drops down then select the related link.
STEP 2: Among the options available select "PROCESS", a list drops down then select "CLOSE YEAR"
STEP 3: Select "YES" to confirm the action. This closes the immediate open accounting year and then activates the next accounting year.
METHOD 2 (Close Income Statement)
STEP 1: Click on the search icon at the top right and type in “Close income statement”. A list drops down then select the related link.
STEP 2: An Options window pops up, then fill in the spaces provided as required and select OK and the process will proceed.
Fiscal Year Ending Date: This date is used to establish the closure date, and it will automatically populate with the last date of the most recently concluded fiscal year.
General Journal Template: Select the section where the entries will be placed. (Usually, General is selected).
General Journal Batch: Choose the general journal batch that contains the entries. You have the option of creating a new batch if necessary.
Document No: The batch job automatically fills this section with the next available number from the No. Series for the journal batch. You may also manually fill up this area.
Retained Earnings: Choose the retained earnings preferred to end the fiscal year.
Post to Retained Earnings: Specify whether the resultant entries are posted as Balance or Details.
Posting Description: Specify the description that will appear with the posting. (The default text is Close Income Statement).
Business Unit Code: Select this option if an entry should be created for each Business Unit Code. If the firm is a consolidated company and this option is chosen, separate entries are produced for each business.
Dimensions: Select the dimension boxes being used to close the income statement. For each dimension utilized in the GL account, an entry will be made.
Inventory Period Closed: Specify the inventory period with an ending date equal to or before the last date of the accounting period to be closed.
NB: After running the Close Income Statement batch job, access the journal indicated in the batch job, examine the entries, and publish them.
STEP 3: Click on the search icon at the top right and type in “GENERAL JOURNAL”. A list drops down then select the related link.
STEP 4: Choose the Batch Name that was used to close the income statement then select OK.
NOTE: The posting date for the entries in the chosen batch will start with the letter "C". On completion, an entry is posted to each income statement account, causing its balance to become zero, and the year's outcome is assigned to the balance sheet.