Dynamics NAV- Year End Close

Each year to close your books and move the Income Statement amounts the the Retained Earnings account on the Balance Sheet, you will perform a year end close.

Here are the steps in Dynamics NAV to perform this function:

Step 1- Validate the G/L Accounts

Review the Chart of Accounts to validate that all accounts are set to the correct ‘Income/Balance’ setting. NAV defaults in as ‘Balance Sheet’ so be sure that your accounts are set properly. NAV cannot run the ‘Close Income Statement’ batch job properly if an account is not set to the correct selection. Click ‘Edit List’ in the ribbon and update as needed,

Step 2- Close the Year

Go to Departments > Financial Management > Periodic Activities > Fiscal Year > Accounting Periods and select a line from this year and click ‘Close Year’ in the ribbon.

A message will pop up asking you to confirm you are closing the right year. Click Yes.

The ‘Closed’ and ‘Date Locked’ fields will now be set to ‘Yes’.

Step 3 -Create the Year

If there are not already records for the next fiscal year, click on ‘Create Year’ in the ribbon at the top. In this case, there was already a next year but for this example, we are going to create the year after. You can create accounting periods in advance for coming years.

A box will pop up asking for the ‘Starting Date’, ‘No. of Periods’ in the next fiscal year, and the ‘Period Length’, usually 1M. Click ‘OK’.

The Accounting Periods page will update with the new Accounting Periods.

Step 4- Run the ‘Close Income Statement’ batch job and post the General Journal Entries

Go to Departments > Financial Management > Periodic Activities > Fiscal Year > Close Income Statement

The ‘Fiscal Year Ending Date’ will default in but you can change it as necessary.

Select the ‘Gen. Journal Template’ =GENERAL from the drop down box.

In the ‘Gen. Journal Batch’ field ,select the batch you want the closing entries to go to.

Enter a ‘Document No.’ to use. I typically do CY2018m where ‘CY stands for Close Year’. You can use whatever you like, the C in front of the date on the records in the General Ledger Entries is going to make it very easy to identify these records.

Select your ‘Retained Earnings Acc.’ from the drop down.

The ‘Posting Description’ populates by default. You can manually override to your own description.

If you are using ‘Business Unit Code’, select the box. This will create one entry per Business Unit Code per G/L Account.

If you are using Dimensions, select the … and then place a checkmark in the ‘Select’ column for each dimension and click ‘OK’.

Select the ‘Inventory Period Closed’ field if you are using Inventory Periods.

Once you are done filling in the page, click ‘OK’.

You will then see a progress bar and then this message:

Click ‘OK’.

Navigate to the General Journal batch you specified:

One record per Business Unit and Dimension combination will be created. Click ‘Post’ and you are done. Note that the entries show a C in front of the date. This is an indicator they are closing entries.

I have also posted a video on this topic a while ago. It walks you through the year end closing in NAV2013, which looks a little different in the later versions of NAV, but the process is exactly the same:

#Year #Close #End #DynamicsNAV #AccountingPeriod #Closing

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