All Accounting Periods erroneously marked as New Fiscal Year

mfh · 2013-02-05

One of my customers has erroneously marked all of their Accounting Periods in 2012 (normal calendar month) as 'New Fiscal Year'. And did also close all these 12 periods with the 'Close Year' function in the Accounting Periods form.
Now, trying to post the 'Close Income Statement' for a fiscal Year Ending Date of 31-12-2012 results in journal lines that will only post the result of the month of December.

I advised my customer to run the 'Close Income Statement' for each Accounting Period that has the 'New Fiscal Year' checkbox ticked, i.e. 12 times for each Fiscal Year Ending Date: 31-01-2012, 29-02-2012, 31-03-2012, etc.

Would this procedure cause any inconsistencies in their Trial Balance for 2012 or Fiscal Year Balance?
Any comment is appreciated!
Btw: they use NAV5.0SP1.

Alex_Chow · 2013-02-05

Yes, it would. I would recommend your client only run close income statement on the last period.

The problem you will mainly be on the income statement since it's zeroed out every period.

mfh · 2013-02-06

Alex Chow wrote:

Yes, it would. I would recommend your client only run close income statement on the last period.

Dear Alex,

Ok, that sounds feasible. But, what would be the alternative? If my customer only runs the 'Close Income Statement' for the last 'Fiscal Year' (i.e. only Fiscal Year Ending Date 31-12-2012), then only the net changes for the month of December 2012 would be posted to retained earnings account.

- Would that create a normal starting balance and income statement for 2013? - And what would be the consequence for 2012 overviews?

Alex_Chow · 2013-02-06

mfh wrote:

If my customer only runs the 'Close Income Statement' for the last 'Fiscal Year' (i.e. only Fiscal Year Ending Date 31-12-2012), then only the net changes for the month of December 2012 would be posted to retained earnings account.

I don't think that's true.

All Accounting Periods erroneously marked as New Fiscal Year

Comments

Categories