Year End adjustment period

Ewan

In most accounting systems there is typically a period 13 set up for year end ajustments that overlaps with period 12.

What is the best way of handling this requirement in Nav 2009?

Our current set up uses a monthly accounting period and the requirement is to be able to post certain adjustments after the year end management accounts have been produced, in such a way that they can be distinguished from all the postings making up the year end accounts.

These adjustments need to be made in the 2012 financial year.

I am after a method that would be considered robust by our external audit company (KPMG)

Any help would be greatly appreciated

Alex_Chow

NAV uses the C dates to denote closing entries. So if your fiscal year ends on 12/31/12, the closing date entries would be C12/31/12.

Using date filters, if you want to include closing entries, it would be 01/01/12..C12/31/12. Without closing entries, it would be 01/01/12..12/31/12.

MarkHamblin

Any adjustments posted after you close the year will have the "Prior-Year Entry" flag set on the ledger entry. That is the equivalent of a 13th period - you can find any adjustments by filtering on that field.

And as Alex says, if you use "C" in front of the date in a filter on the chart of accounts, you can identify any adjustments that haven't been closed. However, once they've been closed the only way to identify them is with the prior-year entry field.

Ewan

Hi

Thank you both, being an SQL man how do you distinguish closing entries from ordinary ones in the ledger entry table?

I have noticed that when we set up the system and closed it for 2011 having imported all the opening transactional data that the posting date on the closing entries also has a time of 23:59:59

Is this how closing entries are identified? (All other posting date have a time of 00:00:00)

Thanks

MarkHamblin

Yes, that is how closing entries are stored in SQL.

Ewan

If global dimension codes are mandatory against all the GL account codes, will running the year end produce transactions grouped by the dimension codes as used on the ledger or will it ignore them?

Alex_Chow

The system will close by dimensions. Make sure when you run the Close Income Statement process that you close by Dimensions.