Fical Year Closing

niksb

Hello all,

I am a Techincal consultant and working with a Navision Client company in FMCG sector. They are using Navision 4.0 for past 3-4 years.
Before i joined they have not closed Fiscal year of last 3 years(2007-2010).

Now project is assinged to me that Closing of year closing of all these years.

As i am a techincal person i dont have much knowledge of Fiance and i am confuse what to to.

Kindly let me know the procedure in Navision also functionally and Finance point of view what is need to be checked about balance carry forward and P&L etc.

Also once closing the years how the system will become fast?

Also if there is any documentation about this please let me know

chengalasettyvsrao

This link may help you

viewtopic.php?f=1&t=40019

I strongly suggest you to have the senior to help you for first time , so you can do yourself nexttime onwards.

varun_arora26513

Hi niksb,

For closing year end, first you have to close the accounting period for 2007 then 2008, 2009, 2010 one by one. once you close the year 2007 in accounting period after that you have to close the income statement Accounts and transfer the balance to retained earning a/c by using close income statement batch job which will automatically create the reverse entries in general journal and then ur accountant has to check that entries if everything fine then just post it.

I prefer you will do this in the company of your Accountant.


Regards,
Varun

niksb

Thank you for reply.

I understand littlebit and sounds that the Procedure is not so complecated.

However i have a small doughbt that Running Close Income statement Batch is nessesary? and Also as mentioned(Transfer to retained earnings accounts) this will be Balance Account No. in JV ryt?

What is the immapct of this job processing and how to know which account to select?
Also what this job process actually does?

Also as my company have moved forward without closing accounting period, when now we will close does this Batch wll double the Balance?

Also here everyone is saying that after year closing system will perform faster... how??

varun_arora26513

My pleasure!!!

Yes, Running Close Income statement Batch is necessary and Transfer to retained earnings accounts will be the Balance Account No. in JV.

this job automatically checks all income statement accounts and to make their balance zero for the required year, system create the reversal entries in JV. Your accountant will explain you better.

No if you do it correctly it will not double the balance, to clear your doubt do it on test first check the result with your accountant.

it does not mean that system will get faster after year end closing but Financial book year end closing is one of the most important function of each company.

Regards,
Varun

niksb

Hello varun,

Yes sure we are first running in Test DB only and once entire activity in Test is okey and Account manager approves then we will proceed to live.

I didnt get you by "this job automatically checks all income statement accounts and to make their balance zero for the required year, system create the reversal entries in JV" :-k

Required year is The one which i am closing? Also what does mean retained earnings account? Which account have to select?

Also the Income statement Accounts which will become zero for the year how it will be carried forward in next year?

varun_arora26513

Hi niksb,

Check with your accounts manager, he can answer your questions because these are finance terminologies, or check with your functional consultant.

Regards,
Varun

chengalasettyvsrao

I suggest you it may be wise to backup and restore the database as a local copy to test or play and show it to accountant of the client.

niksb

Thank you for all the replies

I am also reading help(F1) from Navision for the same.

I have small doughbt that on running Close Income Statement Batch Job it will create the reverse entries for All income statement accounts for Closing year.

On posting of this Closing JV. Do i need to post one more JV for the opening for Next year? or The batch job itself do that?

chengalasettyvsrao

niksb wrote:

Thank you for all the replies

I am also reading help(F1) from Navision for the same.

I have small doughbt that on running Close Income Statement Batch Job it will create the reverse entries for All income statement accounts for Closing year.

On posting of this Closing JV. Do i need to post one more JV for the opening for Next year? or The batch job itself do that?

No Opening entries to be made for next year.

niksb

Thanks for reply,

I have a query.


At my client place Fiscal Year is made upto april 2010 but not further.

But they are still posting entries of 2011.

Now the problem is if i try to close all years upto 2010. 2008 and 2009 will close but 2010 will not because 2011 year is not open.

Is this possible to skip the opening fiscal year 2011 and directly open 2012 when it ends?
or if now i open the year 2011 and close 2010. Will there be any problem??

please suggest as this is a critical issue

jglathe

Hi,

this should be advised by the accountants... You can open new years, no problem. I would open 2011 and 2012. A missing accounting period unfortunally doesn't forbid posting at these dates, but reporting by period will behave oddly.

with best regards

Jens


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