Opening Entries Batch job result

asking

Hi All,

Can anybody explain me this ?

I ran the batch job of NAV closing a year what it did. It reversed all the Income Statement entries and carried the sum of all Asset, Liability, Income and Expense a/c to retained income (which i specified).

But if i am carrying over the data from some other system then i will carrying my Sales fig. to my NAV as well. Or i will be carrying only the kind of entries NAV has created. While going live. Means i am talking about all the cases where in i am going live at the time of closing or in between the year.

So isn't this a contradiction in itself. :-k

ssingla

Year End Closing Batch Job: The purpose of the batch job is to close the income statement of a particular period and transfer the net result to the balance sheet. It will not transfer the balance of Assets and Liabilities accounts.

If you are going live on start of the fiscal period then you should import the opening balances of assets and liabilities. There is no need to import the income statement balances. But if you are going live in the middle of fiscal year then you have two options :

a) Import only balance sheet accounts after passing closing entry in legacy system (Transfer of Income statement accounts to balance sheet retained earning accounts)

b) Import income statement balances along with Balance sheet accounts in NAV.

Option b allows to have complete fiscal year profit and loss statement and is preferred by most of the accountants. There is no contradiction as such and it depends on the approach
you decides.

P.S. The consumption entry/closing stock entry should be passed in the legacy system to make in comparable with the NAV balance before importing opening balances.