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.

Payment Registration

What are the benefits of using Payment Registration?

Simplicity:

  • All processes are brought together on one page to efficiently handle registration of incoming documents.
  • Ability to accommodate various ways of doing payment registration.

Productivity:

  • Easy overview of open entries.
  • Easy sorting and filtering across open entries.
  • Less data entry.

Ease of Use:

  • In common scenarios, the user only has to mark entries and post, and then is done.
  • Totals to show that all registrations are made.
  • Users can define payment registration setup according to responsibilities and processes.

What do we see in Payment Registration?

  • All outstanding payments for all customers.
  • This is everything that customers need to pay.
  • You can also see positive as well as negative amounts.
  • Also, credit memos are included here.

What are the useful features?

  • You can easily search for customers using the Search Customers action.
  • You can easily filter on the certain customer. Right-click on a customer and click Filter to This Value (Att+f3).
  • You can sort on specific columns by clicking on the column.
  • You can also Search Documents based on different filters.

Setup

Go to Departments/Financial Management/Cash Management.

Open Payment Registration. If you are opening it for the first time, the system will populate the Payment Registration Setup page.


If not already specified, you will have to specify the journal template and batch you want to use for the payment registration and also the balancing account type, for example in which bank account would you like to balance the incoming payments? You can choose to use the account as default and also if you want the date received to be filled automatically.


So once this setup is done, we are already up and running and we can start using the payment registration function.

Post Payments

All we need to do is to go to specific line, for example in this case we select customer Selangorian Ltd. (Invoice 103002).

Suppose that the customer has already paid the invoice. So all we need to do is select the Payment Made checkbox.

You will notice that the system automatically fills in the Date Received, based on the Work Date and also the Amount Received is entered.


Post Lump Payments

Suppose multiple documents have been paid by a customer; that’s what we call lump payment.

In the following example we can see couple of documents from John Haddock Insurance Co., so we select the relevant documents that the customer paid.

Now instead of using Post Payments action, we can now use Post as Lump Payment action.

NOTE: Once the full payment has been posted, the relevant lines are removed from the Payment Registration window.


Result:

Go to customers.

Here we select customer John Haddock Insurance Co. (30000), for which we had posted the lump payment and open the Customer Ledger Entries.

Here you can see the payment line, no remaining amount anymore and in the fact box you can see that there are two applied entries.

When you check the applied entries, you can see the two invoices that we have posted to (remember during the lump payment the two invoices that we had selected). Basically, that how the payments have been posted.

Customer Ledger Entries


Applied Entries


Search Customers and Documents

It could be interesting to search for customers using the Search Customers action. So we can search for customer 10000 (The Cannon Group PLC) for example and go to the ledger entries to look for detailed information.


Once that we decide that this is the customer that we would like to use in the Payment Registration, you can also choose to start filtering on the customers.


You can also perform Sorting by clicking on the columns. For example, sort the records in the Payment Registration based on Due Date. By clicking on the column you can sort the records in ascending or descending order based on the column value (note the arrow key beside the column name when you sort).


You can Search Documents and apply various filters.


Let us enter a document number 101022 (sales order number). Let’s say, this is the reference that we see on the bank statement, that is provided by the customer.

Click Search and now we see that there indeed is a sales order.


Click Show to open the sale order. If we check the order, we see that there is no shipment or invoice. But let’s say based on an agreement the customer has paid in advance on this sales order.

Post Payments Manually Without a related Document

So let’s go back to payment registration window and click General Journal. This will allow us to directly enter advance that we received from the customer. So in this example, we received the Payment from Customer MEMA Ljubljana d.o.o. (38128456) for -1200/-.


We can now simply post the payment. This is now added as an open payment in the payment registration overview.

Create a Finance Charge Memo from the Payment Registration Page

If we sort on the Due Date, we can see that some invoices are overdue.

We can select the invoice, and now we can see that the payment is overdue and you can calculate interests.


So before posting the payment we can let the system create the Finance Charge Memo. So maybe the customer paid quiet late and based on the general conditions we will charge interest.

Click on Finance Charge Memo. Fill in the customer details, click Suggest Fin. Charge memo Lines. This will create the lines showing the amount (interest) the customer need to pay. Click Issue and Ok.


Now you can post the payment on the payment registration as the customer has paid.

As a result, you will see that a line has been added, because now a Finance Charge Memo is also due by the customer. So they have to pay the interest.