Annual closing operations/closing fiscal year

alantviti

Hi everyone!

When I run Close the Income Statement Batch, and when I post the journal lines the batch creates, the process of closing the fiscal year is supposed to be over.

But when I go to the G/L Accounts, all of the Income Statement accoutns are supposed to be 0, but they still show amounts (although they ARE equal) on the debit and credit side.

Then when I run the report for the G/L Account card, there is no closing entry shown because of the so called "Cdd/mm/yy" date format. There should be a closing entry shown. Any experience, know how, information???

Then, when you close the year, why are e.g. all of the customer entries still shown on the customer card? There is supposed to be only beginning entry for the current year, and all of the invoices from January 1st onward.

Any help would be helpful!!!

THANK YOU!

kine

Closing the year does not mean deleting or something of entries. It is why you see all history of your customer... closing the year means only operations over you G/L accounts.

alantviti

Yes, I understand that.

But, in Bosnia, for example, all of the expenses go on class 3 in G/L accounts. When I close the year, all of thsoe accounts should be zero, so we can start posting the expenses from the new year. We do not want them adding onto the expenses from the last year. I hope this is the case in every country.

We want to start the new year with the amount zero on each of the expenses accounts.

Also, we do not want to see all of the detailed entries for the customer for the past year.

I hope this explains a bit.

chaswin

Navision never deletes transactions. Ever! The best you can do is to summarise transactions. This is the nature of a relational database. If you find NSC's deleting transactions from a database, stop them as the practice can cause enormous problems!

In the GL, the strategy of posting a closing entry means that you can produce GL reports in detail for any year, ever. This is something a lot of ERP systems can't do. Accountants love it.

One thing to be careful about is to make sure that you select the right dimensions when you create the closing journal. If you don't then you'll find that the overall account will reflect as a zero opening balance but that dimension level reports (by department for example) will show a balance which includes the prior year closing balance. This is because the closing entries were not at dimension level. Fortunately this is easy to fix but it is a common mistake.

silk

Hi

Mine is not a reply i am also having the same issue when it comes to closing of years. My understanding as well is that Income and Exp Accounts do not accumulate like the Balance sheet accounts

Please help

chaswin

The day to day processing of GL transactions is identical for both Balance Sheet and Income Statement accounts.

The only difference is that the year end procedure can be run for Income Statement accounts alone.

What the year end does is to place a transaction in what is effectively "period 13" ("Cdd/mm/yy" where dd/mm/yy is the last day of the year) that reverses the YTD balance for each Income Statement account, down to dimension level if required. (When there would be more than one transaction per GL account).

The net result is that Balance Sheet accounts bring a balance forward into the new financial year whilst Income Statement accounts have a nil opening balance. However, because the reversing transaction is in the special closing period, it is still possible to run correct reports for all accounts for the prior year.

silk

Thanx for the nice clarification, but my problem really is with the closing the year. Correct me if i am wrong this is what i am doing. Close the Fiscal year, goto close income statement. then specify the period the batch, the retained income. the last area i am indeed ticking Close by Dimension. If i run the global report after posting the batch i get good figures, but the problem starts after just specifying a dimension. Is there something that i a missing, i have reversed the process redone it omitting the Close by dimension thingy and stll i get balance in the T/B for income statement accounts with dimension filters.

chaswin

You have to put a tick against every dimension, otherwise it won't generate the correct closing entries. In which case it will balance overall but not when filtered by dimension. It seems as if you aren't selecting all the dimensions.

Have you closed off all prior years? If you haven't then the year end will only generate current year transactions and you would be left with income statement balances B/F from a prior financial year.