Working with Accounting Period

It is good to change your profile to Accounting Manager to work with Account Periods.

How do I create a new financial year?

You can create a financial with these simple steps:

  • Click Departments/Administration/Application Setup/Financial Management/Finance/Accounting Periods or just search for Accounting Periods and choose the related link.
  • On the Accounting Periods window, click Create Year.
  • Specify the fields and click OK.

This will set up a new fiscal year automatically so that you can enter transactions for the new year.


How do I close a financial year?

The following steps are involved in closing a financial year:


Close Financial Year

In the Accounting Periods window, you can see the years that have been setup in NAV already. You need to remember that if you want to close this year and you do not have another accounting period for the next financial year, then you have to create that first, before you can close this year.

To close the financial year:

  • First you need to ensure that you have selected the year that you want to close. Remember that all the previous year are closed, before you can close this year.
  • Select the line you want to close (beginning of the financial year 2017 in this example) and click Close Year.

Please note once you close the year, you will not be able to reopen it. NAV also shows a warning message for the same. Be careful, do not click Yes unless you are certain.

Close Income Statement

Once we have closed the year, we need to run the Close Income Statement batch in NAV.

  • Click Departments/Financial Management/Periodic Activities/Fiscal Year/ Close Income Statement or search for Close Income Statement and select the related link.
  • On the Close Income Statement window:
    • Fiscal Year Ending Date will automatically be filled
    • We now have to specify the Gen. Journal Template and Gen. Journal Batch. We have created the following batch in this example:

  • Fill in the Document No.
  • Specify a G/L account in the Retained Earning Acc.
  • You can also change the Posting Description
  • You can also close your income statement by dimension.
  • You can schedule the batch or run this manually by clicking on Ok.
  • After you run the batch, you will see that the journal lines have been created successfully.

Remember, you still need to post your journal.

Post year End Closing Entry

Let us navigate to our journal and check that we are happy with it.

  • Search for General Journal and select the related link
  • Select the correct option (FYE in this example) and open the general journal.
  • Review the results of your financial year end journal and once you are happy, you can Post your journal.

  • You will receive a message that your journal is successfully posted.

Well done, you have successfully closed your financial year J
J.

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