When you come to the end of your financial year, you run the year end routine in Microsoft Dynamics 365 Business Central in order to close your current financial year and to move into your new financial year.
Before you do this, it’s recommended you carry out a few quick checks to ensure your year end runs smoothly. See the steps below:
Pre-Year End Checklist in Business Central
Before completing the Year end within Business Central, we would advise checking the below processes are complete:
- Ensured all transactions dated in the current year have been posted.
- Ensured all normal period end tasks have been carried out, up to the final period.
- Made any corrective postings on the advice of your accountant. This needs to be done before the year end is closed.
- Printed the final Trial Balance.
- Printed the Profit and Loss and Balance Sheet financial statements.
- Printed all other reports required in the Nominal Ledger, such as budget reports, transaction listing, and the deferred postings list.
- Confirm the new fiscal periods are set up within Accounting Periods.
- Check The Document Series No are set up for the new year.
Completing the Year End Process Within Dynamics 365 Business Central
- To complete the Fiscal Year, you will need to open the “Accounting Periods” task from here you can select Process – Close Year.
- Once you have selected to close the year the system will ask you to confirm that you wish to close the current year:
- Once the year is closed this will automatically mark the Closed column within accounting periods window:
- To stop Users from Posting into the previous year, we would advise updating the allow Post period field from ‘General Ledger setup:
- Once the account periods are closed you can then complete the Close income statement:
- From the Close statement Options:
- Fiscal Year end date – Confirm this is correct.
- Gen.Journal Template – Select the relevant Journal template.
- Gen Batch – Select the Relevant General Batch.
- Document Number: – Enter General Document number you wish to use.
- Then select Ok this will then create the general journal.
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We would advise to check the journal through and confirm that you are happy with the accounts and values before posting:
- To post the journal select Post/Print and Post:
This will post the Year end adjustment journal and complete the year end process.
Adjusting Entries After Closing The Year In Dynamics 365 Business Central.
If you need to make an adjustment to the close year end values, you can do this by creating a General Journal for the previous year’s date:
Once posted the journal this will post the entries to the previous year chart of accounts.
To update the Bfwd values to the new Fiscal year, you will need to re-run the close Income Statement:
This will then create a Journal within General Journals to apply the entries to the chart of accounts you will need to post the journal:
